Summary
AutoZone Inc. (AZO) announced on November 22, 2017, a material amendment to its existing credit facility, entered into on November 18, 2017. This amendment is primarily focused on enhancing the company's financial flexibility and extending its borrowing capabilities. Key changes include a significant increase in borrowing capacity, from $1.6 billion to $2.0 billion, with an expanded option to further increase this limit up to $2.4 billion. The maturity date of the revolving credit agreement has also been extended by one year, from November 18, 2021, to November 18, 2022, with an additional one-year extension option. These adjustments demonstrate AutoZone's proactive approach to managing its debt structure and ensuring access to capital for its ongoing operations and potential future investments.
Key Highlights
- 1AutoZone extended and amended its primary revolving credit facility.
- 2The total borrowing capacity under the credit facility was increased from $1.6 billion to $2.0 billion.
- 3The company's option to increase its borrowing capacity was enhanced, allowing for potential further increases up to $2.4 billion.
- 4The maturity date of the credit facility was extended by one year, from November 18, 2021, to November 18, 2022.
- 5An additional one-year extension option for the termination date is available.
- 6No other terms of the original Revolving Credit Agreement were altered by this amendment.
- 7The filing incorporates details of the Master Extension, New Commitment and Amendment Agreement as an exhibit.