8-KMaterial AgreementsFinancial EventsExhibits & Filings

AUTOZONE INC 8-K Report, Material Agreement (Mar 30, 2020)

Filed March 30, 2020For Securities:AZO

Summary

AutoZone, Inc. (AZO) filed an 8-K on March 30, 2020, to report the issuance and sale of a significant amount of new debt. The company entered into an underwriting agreement to issue $500 million in 3.625% Notes due 2025 and $750 million in 4.000% Notes due 2030, totaling $1.25 billion in aggregate principal amount. This offering was completed on March 30, 2020, as detailed in Item 2.03 of the filing. The proceeds from this debt issuance are not explicitly stated in the provided excerpt, but such an action typically aims to bolster liquidity, fund operations, or refinance existing debt. The notes are senior unsecured obligations, ranking equally with other senior unsecured liabilities. The filing also outlines customary provisions, including covenants restricting debt, sale-leaseback transactions, and mergers, as well as conditions for redemption and change of control provisions that may allow noteholders to require repurchase.

Key Highlights

  • 1AutoZone issued $500 million in 3.625% Notes due 2025.
  • 2AutoZone issued $750 million in 4.000% Notes due 2030.
  • 3Total aggregate principal amount of new debt issued is $1.25 billion.
  • 4The debt issuance was completed on March 30, 2020.
  • 5The Notes are senior unsecured debt obligations.
  • 6The Notes are subject to customary covenants regarding debt, sale-leasebacks, and mergers.
  • 7The Notes include provisions for redemption at the company's option and repurchase rights for noteholders upon a change of control.

Frequently Asked Questions

This 8-K filing reports the material definitive agreement related to AutoZone's issuance and sale of $1.25 billion in new notes, consisting of $500 million in 3.625% Notes due 2025 and $750 million in 4.000% Notes due 2030. It also confirms the completion of this debt offering.

The 2025 Notes bear a fixed interest rate of 3.625% per year, payable semi-annually, and mature on April 15, 2025. The 2030 Notes bear a fixed interest rate of 4.000% per year, payable semi-annually, and mature on April 15, 2030. Both are senior unsecured debt obligations.

The notes include customary covenants that restrict AutoZone's ability to incur certain types of debt, enter into sale and leaseback transactions, or merge/consolidate. Additionally, noteholders have rights in the event of a change of control, allowing them to potentially require AutoZone to repurchase the notes.

The filing notes that certain underwriters or their affiliates may have relationships with AutoZone, including providing financial advisory or banking services, and may act as lenders under existing or future credit facilities, such as a contemplated 364-day revolving credit facility.