Summary
O'Reilly Automotive, Inc. (ORLY) filed an 8-K on August 21, 2012, reporting on the issuance and sale of $300 million aggregate principal amount of 3.800% Senior Notes due 2022. The company entered into an Underwriting Agreement with J.P. Morgan Securities LLC and U.S. Bancorp Investments, Inc., as representatives of the underwriters, on August 16, 2012. The net proceeds from this offering are approximately $296 million, intended for general corporate purposes including working capital, share repurchases, and debt repayment.
Key Highlights
- 1ORLY successfully issued $300 million of 3.800% Senior Notes due September 1, 2022.
- 2The net proceeds from the offering are approximately $296 million after deducting underwriting discounts and expenses.
- 3Proceeds are earmarked for general corporate purposes, which may include share repurchases and debt repayment.
- 4The Notes are senior unsecured obligations and rank equally with existing and future unsecured and unsubordinated indebtedness.
- 5The Notes are guaranteed on a senior unsecured basis by most of ORLY's subsidiaries.
- 6The Indenture includes covenants that limit the company's ability to create certain liens, enter into sale and leaseback transactions, and undergo mergers or consolidations.
- 7Holders may require repurchase at 101% of principal if a Change of Control Triggering Event occurs.