Summary
O'Reilly Automotive, Inc. (ORLY) filed an 8-K on July 3, 2013, to report material updates to its credit facilities. The company entered into Amendment No. 2 to its Credit Agreement and Amendment No. 1 to its Guaranty with Bank of America, N.A. This amendment primarily involves restructuring and enhancing the company's existing credit arrangements, impacting its financial flexibility and borrowing costs. Key changes include a reduction in aggregate commitments to $600 million in senior unsecured revolving credit, with sub-limits for letters of credit and swing line borrowings. Notably, the amendment extends the maturity date of the credit facility to July 2, 2018, and lowers the interest rate margins and facility fees, with rates tied to the company's debt ratings from Moody's and S&P. The company also has the option to increase commitments by up to $200 million through an uncommitted incremental facility. As of the amendment date, there were no outstanding borrowings.
Key Highlights
- 1O'Reilly entered into an amendment to its Credit Agreement and Guaranty on July 2, 2013.
- 2The aggregate commitments under the senior unsecured revolving credit facility have been reduced to $600 million.
- 3The maturity date of the credit facility has been extended to July 2, 2018.
- 4Interest rate margins for loans and facility fees have been decreased, with rates tiered based on debt ratings.
- 5An uncommitted incremental facility allows for potential increases in commitments by up to $200 million.
- 6The amendment ensures that subsidiaries continue to guarantee the company's obligations under the Credit Agreement, with certain exceptions.
- 7No borrowings were outstanding under the credit facility as of the amendment date.