AutoZone, Inc. (AZO, Financial) has successfully completed the sale of $500 million aggregate principal amount of its 5.125% Notes due 2030. The transaction was finalized on April 14, 2025, following an underwriting agreement with BofA Securities, Inc., J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., and Wells Fargo Securities, LLC, who acted as representatives of the underwriters.
The Notes, which are senior unsecured debt obligations, were issued under an Indenture dated August 8, 2003, with Regions Bank serving as the successor trustee. The offering was conducted under AutoZone's shelf registration statement filed with the U.S. Securities and Exchange Commission on July 19, 2022.
Interest on the Notes will be paid semi-annually at a fixed rate of 5.125% per year, with the first payment scheduled for December 15, 2025. The Notes will mature on June 15, 2030, and are subject to customary covenants and events of default provisions. AutoZone retains the option to redeem the Notes, in whole or in part, with notice periods ranging from 10 to 60 days.
This strategic financial move underscores AutoZone's commitment to maintaining a robust capital structure while providing flexibility for future growth opportunities. The Notes rank equally with the company's other senior unsecured liabilities and are senior to any future subordinated indebtedness.
For more detailed information on the terms and conditions of the Notes, interested parties can refer to the Officers’ Certificate and the Indenture, which outline the specific provisions and redemption options available to the company.
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