Auto-parts chain AutoZone took no chances on interest rates for its USD500 million note sale, which was priced last week, and entered Treasury locks beforehand. Jay Cook, treasurer in Memphis, Tenn., said the corporate entered the Treasury locks in the months ahead of the bond sale in order to lock in attractive rates. He declined to specify the exact rates. In the bond issue, AutoZone launched USD300 million of 12-year notes that offer a 5.5% coupon and USD200 million in 10-year notes with a 4.75% coupon.
Banc of America Securities and JPMorgan won the derivatives business on the basis of price, Cook said. BofA and Wachovia Securities lead managed the note sale.
