8-KMaterial AgreementsFinancial EventsExhibits & Filings

AUTOZONE INC 8-K Report, Material Agreement (Apr 21, 2016)

Filed April 21, 2016For Securities:AZO

Summary

AutoZone Inc. (AZO) filed an 8-K on April 21, 2016, to report the completion of a significant debt offering. The company successfully issued $650 million in aggregate principal amount of new notes, consisting of $250 million in 1.625% Notes due 2019 and $400 million in 3.125% Notes due 2026. This offering was conducted under the company's existing shelf registration statement and involved an Underwriting Agreement with Barclays Capital Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and SunTrust Robinson Humphrey, Inc. These new notes are senior unsecured obligations and rank equally with other senior unsecured liabilities. The proceeds from this issuance will likely be used for general corporate purposes, potentially including funding growth initiatives, share repurchases, or refinancing existing debt. Investors should note the specific interest rates, maturity dates, and the covenants associated with these new debt instruments, which are detailed in the filing.

Key Highlights

  • 1AutoZone Inc. issued $250 million of 1.625% Notes due 2019.
  • 2AutoZone Inc. issued $400 million of 3.125% Notes due 2026.
  • 3Total aggregate principal amount of new notes issued is $650 million.
  • 4The notes are senior unsecured debt obligations of the company.
  • 5Interest payments are semi-annual, commencing October 21, 2016.
  • 6The offering was made under AutoZone's shelf registration statement.
  • 7Key underwriters included Barclays Capital Inc., Merrill Lynch, and SunTrust Robinson Humphrey, Inc.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report the completion of a material definitive agreement, specifically the sale of $650 million in aggregate principal amount of new notes (2019 and 2026 Notes).

AutoZone issued $250 million of 1.625% Notes due April 21, 2019, and $400 million of 3.125% Notes due April 21, 2026. Both series of notes bear interest at fixed rates, payable semi-annually.

The new notes are senior unsecured debt obligations and rank equally with AutoZone's other senior unsecured liabilities. They rank senior to any future subordinated indebtedness.

AutoZone has the option to redeem the notes, either in whole or in part, at specified redemption prices. Additionally, holders of the notes may require AutoZone to repurchase them if a change of control occurs, as defined in the applicable Officers' Certificate.