New Issue: CSK Auto $85 million step-down exchangeables yield 4.625%, up 37.5%

By Ronda Fears

Nashville, Dec. 15 - CSK Auto Corp. sold $85 million of 20-year exchangeable notes at par to yield 4.625%, which step down to 4.375% in five years, with a 37.5% initial conversion premium via bookrunner JP Morgan Securities.

The exchangeables were issued by CSK Auto, Inc. and are exchangeable into the common stock of parent CSK Auto Corp., a Phoenix-based automotive aftermarket retailer. Proceeds are earmarked, along with credit facility borrowings, to fund the acquisition of Murray's Inc.

Issuer:	CSK Auto, Inc.
Issue:	Exchangeable senior unsecured notes
Reference shares:	CSK Auto Corp.
Bookrunner:	JP Morgan Securities
Amount:	$85 million
Greenshoe:	$15 million
Maturity:	Dec. 15, 2025
Coupon:	4.625% to Dec. 15. 2010, then steps down to 4.375%
Price:	Par
Yield:	4.625%
Conversion premium:	37.5%, over stock sale price of $14.59
Conversion price:	$20.06
Conversion ratio:	49.8473
Call:	Non-callable for five years, then at par
Put:	In years five, 10 and 15
Pricing date:	Dec. 14
Settlement date:	Dec. 19
Distribution:	Rule 144A

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