UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of The Securities Exchange Act of 1934
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| Item 1.01 | Entry into a Material Definitive Agreement |
On October 29, 2020, Genuine Parts Company (the “Company”) issued $500 million in aggregate principal amount of the Company’s 1.875% Senior Notes due 2030 (the “Notes”), which mature on November 1, 2030, pursuant to an indenture dated as of October 29, 2020 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee (the “Trustee”). Pursuant to the Indenture, the Company executed an officer’s certificate, dated October 29, 2020, setting forth the terms of the Notes (the “Officer’s Certificate”). The Notes were offered and sold pursuant to the Company’s shelf registration statement on Form S-3 (File No. 333-249625) filed with the Securities and Exchange Commission (the “Commission”) on October 23, 2020, as supplemented by a prospectus supplement dated October 27, 2020, filed with the Commission on October 28, 2020.
The Company will pay interest on the Notes on May 1 and November 1 of each year, beginning May 1, 2021. The Notes will be unsecured and unsubordinated debt obligations of the Company and will rank equally in right of payment with the Company’s other unsecured unsubordinated debt from time to time outstanding. The Notes will be structurally subordinated in right of payment to all existing and future indebtedness, liabilities and other obligations of the Company’s subsidiaries. The Notes are subject to customary covenants restricting the Company’s ability, subject to certain exceptions, to incur debt secured by liens and to enter into sale and leaseback transactions. These covenants are subject to a number of important exceptions and qualifications. The Indenture provides for customary events of default and further provides that the Trustee or the holders of 25% in aggregate principal amount of the outstanding series of Notes may declare such Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period.
The Company may, at its option, redeem the Notes at any time prior to August 1, 2030 (three months prior to the maturity date of the Notes) in whole or in part, at the applicable make-whole redemption price specified in the Officer’s Certificate. If the Notes are redeemed on or after August 1, 2030, the redemption price will be equal to 100% of the principal amount of the Notes being redeemed, plus accrued and unpaid interest thereon to, but excluding, the applicable redemption date.
If a change of control triggering event, as defined in the Officer’s Certificate, occurs, unless the Company has defeased the Notes as described in the Indenture or exercised its option to redeem the Notes, the Company will be required to offer to repurchase the Notes at a repurchase price equal to 101% of the principal amount of the Notes, plus accrued and unpaid interest thereon to, but excluding, the date of repurchase.
As a result of the offering of the Notes, the Company will become obligated to repay a portion of certain existing senior debt that ranks equally in right of payment with the Notes. The Company intends to use the net proceeds from the offering of the Notes to repay outstanding indebtedness, in part to satisfy its debt repayment obligations. Together with proceeds from this offering and cash on hand or borrowings under its revolving credit facility, the Company expects to terminate its existing credit facility and to repay the existing term loan A facility and all other indebtedness thereunder.
The above description of the Indenture, the Officer’s Certificate and the Notes is qualified in its entirety by reference to the Indenture, Officer’s Certificate and the form of Notes, copies of which are attached hereto as Exhibits 4.1, 4.2, and 4.3, respectively.
| Item 8.01. | Other Events |
On October 27, 2020, the Company entered into an underwriting agreement (the “Underwriting Agreement”) among the Company and J.P. Morgan Securities LLC and BofA Securities, Inc., as representatives of the several underwriters named therein (the “Underwriters”), pursuant to which the Company agreed to issue and sell to the Underwriters, and the Underwriters agreed to purchase, the Notes. The Underwriting Agreement contains customary representations, warranties and agreements of the Company and customary conditions to closing, indemnification rights and obligations of the parties and termination provisions.
The description of the Underwriting Agreement is qualified in its entirety by reference to the Underwriting Agreement, a copy of which is attached hereto as Exhibit 1.1.
| Item 9.01 | Financial Statements and Exhibits |
(d) Exhibits
| * | Annexes, schedules and/or exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K. The Company agrees to furnish supplementally a copy of any omitted attachment to the SEC on a confidential basis upon request. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Genuine Parts Company | ||||||
| October 29, 2020 | By: | /s/ Carol B. Yancey | ||||
| Name: Carol B. Yancey | ||||||
| Title: Executive Vice President and CFO | ||||||