8-KMaterial AgreementsFinancial EventsExhibits & Filings

AUTOZONE INC 8-K Report, Material Agreement (Apr 18, 2017)

Filed April 18, 2017For Securities:AZO

Summary

AutoZone, Inc. (AZO) filed an 8-K on April 18, 2017, to report the issuance of $600 million in aggregate principal amount of 3.750% senior unsecured notes due in 2027. These notes are governed by an existing Indenture and were offered under the company's shelf registration statement. The issuance represents a significant debt financing event for the company, providing capital for its operations and growth initiatives. Key terms of the notes include a fixed interest rate of 3.750% payable semi-annually, with interest payments beginning December 1, 2017, and a maturity date of June 1, 2027. The notes rank equally with other senior unsecured liabilities and are subject to customary covenants that restrict the company's ability to incur secured debt, engage in sale-leaseback transactions, or undergo significant corporate changes like mergers or asset sales, unless specific conditions or exceptions are met. The company also retains the option to redeem the notes, and noteholders have a repurchase option in the event of a change of control.

Key Highlights

  • 1AutoZone issued $600 million in 3.750% Notes due 2027.
  • 2The notes are senior unsecured debt obligations of the company.
  • 3Interest payments are fixed at 3.750% per year, paid semi-annually.
  • 4The maturity date for the notes is June 1, 2027.
  • 5The issuance was made under an existing shelf registration statement.
  • 6Customary covenants restrict future debt, sale-leasebacks, and mergers/asset sales.
  • 7The company has a redemption option, and noteholders have a change of control repurchase option.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the completion of AutoZone's sale of $600 million aggregate principal amount of its 3.750% Notes due 2027, a material definitive agreement and the creation of a direct financial obligation.

The notes carry a fixed interest rate of 3.750% per annum, payable semi-annually. They mature on June 1, 2027, and are senior unsecured debt obligations of AutoZone.

The notes are subject to customary covenants that restrict AutoZone's ability to incur secured debt, enter into sale and leaseback transactions, or merge, consolidate, or sell substantially all of its assets, subject to certain exceptions and conditions.

Yes, AutoZone has the option to redeem the notes, in whole or in part, at specified redemption prices. Additionally, if a 'change of control' occurs, noteholders have the right to require AutoZone to repurchase the notes at specified prices, unless the company has already exercised its redemption option.