Summary
O'Reilly Automotive, Inc. (ORLY) has filed an 8-K to report the issuance of $75,000,000 in aggregate principal amount of 5.39% Series 2006-A Senior Notes due May 15, 2016. These notes were sold through a private placement under a Master Note Purchase Agreement, which allows for up to $300,000,000 in aggregate principal amount to be issued. The primary purpose of this issuance was to refinance existing debt, specifically repaying $75,000,000 of 7.72% Series 2001-A Senior Notes that were due on May 15, 2006. The new notes were issued at 100% of their principal amount, indicating no original issue discount. The Master Note Purchase Agreement includes standard covenants and events of default, such as defaults in payment of other debt exceeding $5,000,000 or significant money judgments against the company or its subsidiaries.
Key Highlights
- 1O'Reilly Automotive issued $75 million in 5.39% Senior Notes due in 2016.
- 2The issuance was part of a larger Master Note Purchase Agreement allowing for up to $300 million in notes.
- 3Proceeds from the new notes were used to repay $75 million of existing 7.72% Senior Notes maturing on May 15, 2006.
- 4The notes were issued through a private placement.
- 5The Master Note Purchase Agreement contains standard financial covenants and events of default.
- 6Key events of default include significant debt payment defaults or large unsatisfied judgments.