Description of notes
The following description of the particular terms of the notes supplements the description of the general terms of the debt securities set forth under the heading “Description of Debt Securities and Guarantees” in the accompanying prospectus. If the descriptions are inconsistent, the information in this prospectus supplement replaces the information in the accompanying prospectus with respect to the notes.
We are issuing the notes under the indenture, dated as of April 29, 2010, or the Original Indenture, among us, the Guarantor and Wells Fargo Bank, National Association, as trustee, as supplemented by a supplemental indenture, to be dated the date of issuance of the notes, setting forth specific terms of the notes (together with the Original Indenture, the “Indenture”). The terms of the notes include those expressly set forth in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended, or the Trust Indenture Act.
In this description, the words “we,” “us,” “our” and “Advance Auto Parts” refer only to Advance Auto Parts, Inc. and not to any of its subsidiaries.
The following summary of certain provisions of the Indenture, the notes and the guarantee does not purport to be complete and is subject to, and qualified in its entirety by reference to, all the provisions of the Indenture, including, without limitation, the definitions of certain terms in the Indenture. Copies of the Indenture are available upon request at the address indicated under “Where You Can Find More Information.”
General
The notes will be issued only in registered form without coupons in minimum denominations of $2,000 and any integral multiple of $1,000 above that amount. The notes initially will be represented by one or more global certificates registered in the name of a nominee of DTC as described under “—Book-Entry, Delivery and Form.”
The trustee, through its corporate trust office in New York City, will act as our paying agent and security registrar in respect of the notes. The current location of such corporate trust office is 600 South 4th Street, 7th Floor, Minneapolis, MN 55415. So long as the notes are issued in the form of global certificates, payments of principal, interest and premium, if any, will be made by us through the paying agent to DTC.
The notes will not be entitled to the benefit of any sinking fund.
The notes will be fully and unconditionally guaranteed on an unsubordinated unsecured basis by Advance Stores Company, Incorporated (the “Guarantor”), which is currently the only guarantor that guarantees the Credit Facility and our Existing Notes, and each of our subsidiaries that in the future incurs or guarantees obligations under the Credit Facility or any other Credit Facility Debt or Capital Markets Debt (each as defined under “—Subsidiary Guarantees”).
Principal, maturity and interest
The notes will mature on March 15, 2032. We are issuing $350,000,000 aggregate principal amount of notes in this offering. Interest on the notes will accrue at a rate of 3.500% per annum and will be payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September 15, 2022. We will pay interest to those persons who were holders of record on the March 1 or September 1 immediately preceding each interest payment date. If we deliver global notes to the trustee for cancellation on a date that is after the record date and on or before the corresponding interest payment date, then interest shall be paid in accordance with the provisions of DTC. Interest on the notes will accrue from the date of original issuance of the notes or, if interest has already been paid on the notes, from the date it was most recently paid. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months.
S-11