O'Reilly Automotive, Inc. Announces New Financing Plan
11 Janeiro 2011 - 12:06PM
- Financing Plan Aimed at Enhancing Flexibility and
Liquidity, Extending Maturities and Improving the Company's Overall
Capital Structure
O'Reilly Automotive, Inc. ("O'Reilly" or "the Company")
(Nasdaq:ORLY), a leading retailer in the automotive aftermarket
industry, today announced that its Board of Directors has approved
a multifaceted financing plan aimed at enhancing flexibility,
increasing liquidity, extending maturities and improving the
Company's overall capital structure. The financing plan includes
the following components:
- refinancing of the Company's outstanding borrowings under its
existing asset-based revolving credit facility, which matures in
July of 2013, with new unsecured senior debt financing;
- entering into a new $750 million senior unsecured revolving
credit facility, maturing in January of 2016;
- authorizing a $500 million share repurchase program to be
utilized within three years; and
- establishing a target rent-adjusted debt to EBITDAR leverage
ratio of 2.0x to 2.25x, using six times capitalized rent.
"The hard work and dedication of our over 45,000 team members
has resulted in 17 consecutive years of profitable growth," said
Greg Henslee, Co-President and Chief Executive Officer of O'Reilly.
"As a result of this success and growth, we are pleased to announce
these plans to improve O'Reilly's capital structure. The
financial structure we are announcing will enable us to achieve a
long-term capital structure with enhanced flexibility and extended
debt maturities, while maintaining O'Reilly's historically
conservative financial policies. Our new capital structure and
leverage target will allow us to effectively optimize the use of
cash generated from operations to first reinvest in our business,
through both organic growth and prudent industry consolidation and
second to opportunistically repurchase, based on market conditions,
shares of our stock. We are committed to utilizing the share
repurchase program within the bounds of our historically
disciplined capital structure to enhance shareholder returns while
maintaining adequate liquidity to execute our growth and expansion
plans."
The new board-approved share repurchase program gives the
Company the ability to repurchase up to $500 million of shares of
its common stock over a three-year period. Stock repurchases
under this program may be made from time to time, as the Company
deems appropriate, solely through open market purchases effected
through a broker dealer at prevailing market prices, based on a
variety of factors such as price, corporate requirements and
overall market conditions. There can be no assurance as to the
number of shares the Company will purchase, if any. The share
repurchase program may be increased or otherwise modified, renewed,
suspended or terminated by the Company at any time, without prior
notice.
"Moving to an unsecured capital structure will allow us
increased flexibility to partner with our vendors to reduce our net
working capital requirements over time. Improvement in our
working capital, in combination with the ability to generate strong
cash flow from operations, will provide us with additional
liquidity and strategic flexibility going forward," stated Tom
McFall, Executive Vice President of Finance and Chief Financial
Officer of O'Reilly.
"Team O'Reilly remains focused on profitable growth,
industry-leading customer service and the daily execution of our
Culture values of teamwork and professionalism," said Ted Wise,
Co-President and Chief Operating Officer of O'Reilly. "Our
strategy continues to be the opening of new stores and strategic
industry consolidation to achieve greater market share. We
plan to increase our store openings this year to 170 new stores
which will bring our total store count to more than 3,700 stores by
the end of 2011."
About O'Reilly
O'Reilly Automotive, Inc. is one of the largest specialty
retailers of automotive aftermarket parts, tools, supplies,
equipment and accessories in the United States, serving both the
do-it-yourself and professional installer markets. Founded in
1957 by the O'Reilly family, the Company operated 3,536 stores in
38 states as of September 30, 2010.
The O'Reilly Automotive, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5430
Forward-looking Statements
The Company claims the protection of the safe-harbor for
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. You can identify
these statements by forward-looking words such as "expect,"
"believe," "anticipate," "should," "plan," "intend," "estimate,"
"project," "target," "will" or similar words. In addition,
statements contained within this press release that are not
historical facts are forward-looking statements, such as statements
concerning the proposed financing plan, our target leverage ratio
and the contemplated transactions. These forward-looking
statements are based on estimates, projections, beliefs and
assumptions and are not guarantees of future events and
results. Such statements are subject to risks, uncertainties
and assumptions, including, but not limited to, our ability to
consummate the financing plan and achieve the target leverage ratio
as described herein, competition, product demand, the market for
auto parts, the economy in general, inflation, consumer debt
levels, governmental approvals, our ability to hire and retain
qualified employees, risks associated with the integration of
acquired businesses including the acquisition of CSK Auto
Corporation, weather, terrorist activities, war and the threat of
war. Actual results may materially differ from anticipated
results described or implied in these forward-looking
statements. Please refer to the "Risk Factors" section of the
annual report on Form 10-K for the year ended December 31, 2009,
for additional factors that could materially affect our financial
performance.
In addition, the information set forth in this press release
with respect to the components of our financing plan is based on
indicative terms, and there can be no assurance that any of the
contemplated transactions will be consummated or that the financing
plan will be consummated in its entirety, on the terms described in
this press release or at all. Further, there can be no
assurance, even if the financing plan is consummated, that we will
achieve our target leverage ratio.
CONTACT: For further information contact:
O'Reilly Automotive, Inc.
Investor & Media Contacts
Mark Merz (417) 829-5878
O Reilly Automotive (NASDAQ:ORLY)
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