AutoZone increases revolver to $1.6 billion, restates 364-day agreement

By Tali Rackner

Norfolk, Va., Nov. 21 – AutoZone, Inc. entered into a third amended and restated revolving credit agreement on Friday to increase the committed credit amount to $1.6 billion from $1.25 billion, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent and swingline lender.

The new credit agreement now terminates on Nov. 18, 2021 and has two one-year extension options. The first extension request must be made no earlier than 60 days, and no later than 45 days, prior to Nov. 18, 2017, while the second request must be made no earlier than 60 days, and no later than 45 days, prior to Nov. 18, 2018.

The agreement continues to include a $75 million sublimit for swingline loans and a maximum $200 million aggregate sublimit for letters of credit, but it reduces the maximum sublimit of each individual letter-of-credit issuer to $33.3 million from $50 million.

Interest was reduced to Libor plus 80.5 basis points to 130 bps, based on AutoZone’s unsecured debt rating.

The facility fee was also reduced and ranges from 7 bps to 20 bps.

JPMorgan Chase Bank, NA is the syndication agent on the deal. Bank of America Merrill Lynch and JPMorgan are joint lead arrangers; Bank of America Merrill Lynch, JPMorgan, SunTrust Robinson Humphrey, Inc., U.S. Bank NA, Wells Fargo Securities, LLC and Barclays are the joint bookrunners; and SunTrust Bank, U.S. Bank, Wells Fargo Bank, NA and Barclays are the co-documentation agents.

364-day credit agreement

Also on Friday, the company entered into an up to $400 million amended and restated 364-day credit agreement with administrative agent Wells Fargo Bank.

The credit agreement terminates on Nov. 17, 2017, but AutoZone may request an extension of the termination date for 364 days after the original termination date.

After exercising the term-out option, the company may not borrow or reborrow additional funds under the 364-day credit agreement. AutoZone will pay a fee of 100 bps to the lenders upon exercise of the term-out option.

Interest on the revolving loans will be Libor plus 92 bps to 132.5 bps based on the company’s debt rating. The facility fees range from 8 bps to 17.5 bps.

U.S. Bank is the syndication agent on the deal and is a joint lead arranger and bookrunner with Wells Fargo Securities.

AutoZone is a Memphis-based automotive parts retailer.

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