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The company plans to use the proceeds to pay back borrowings and for general corporate purposes.
SBJ file
The company plans to use the proceeds to pay back borrowings and for general corporate purposes.

O'Reilly Auto issues $850M in bonds

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O’Reilly Automotive Inc. (Nasdaq: ORLY) last week issued $850 million in bonds, according to U.S. Securities and Exchange Commission filings.

The Springfield-based auto parts retailer on June 6 entered an underwriting agreement with J.P. Morgan Securities LLC and U.S. Bancorp Investments Inc., according to one of the filings with the federal agency. The 4.7% senior notes are due in 2032.

O'Reilly Automotive expects to net roughly $840.7 million from the sale, the proceeds of which will go toward paying outstanding borrowings and for general corporate purposes that may include share repurchases and acquisitions.

The underwriting agreement indicates J.P. Morgan and U.S. Bancorp signed up to purchase the most notes, at $153 million each. BofA Securities Inc. and Truist Securities Inc. tied for second, with roughly $114.8 million apiece.

In the first quarter, O'Reilly Automotive reported net income of $481.9 million, a nearly 4% decrease from $501.6 million a year earlier.

ORLY shares were trading at $601.12 as of 11:16 a.m., compared with a 52-week range of $526.90 to $748.68 per share.

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