Summary
O'Reilly Automotive, Inc. (ORLY) announced through its subsidiary, CSK Auto, Inc., the redemption of its 6 ¾% Exchangeable Senior Notes due 2025. This action pertains to notes originally issued by CSK in December 2005. O'Reilly had previously guaranteed these notes on a subordinated basis at the time of its acquisition of CSK in July 2008, and also committed to issuing O'Reilly common stock upon any exchange of the notes' principal amount. Furthermore, O'Reilly disclosed that holders of these notes have the option to require CSK to repurchase their notes for cash under the terms of the indenture, a right known as the 'Put Option'. This option will expire on December 14, 2010. Investors should note that these announcements relate to the management of outstanding debt and debt-related obligations.
Key Highlights
- 1CSK Auto, Inc. (a subsidiary of O'Reilly) will redeem its 6 ¾% Exchangeable Senior Notes due 2025.
- 2The redemption is for cash.
- 3The notes were originally issued by CSK Auto, Inc. in December 2005.
- 4O'Reilly Automotive, Inc. guaranteed these notes on a subordinated basis following its acquisition of CSK Auto in July 2008.
- 5Holders of the notes have a 'Put Option' to require CSK to repurchase their notes for cash.
- 6The Put Option expires on December 14, 2010.