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 Computershare Trust Company, N.A. as successor to 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, 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
We are issuing $300,000,000 aggregate principal amount of 2026 Notes and $300,000,000 aggregate principal amount of 2028 Notes in this offering.
The 2026 Notes will mature on March 9, 2026, and the 2028 Notes will mature on March 9, 2028.
The 2026 Notes and the 2028 Notes will be issued as separate series of notes under the Indenture and will vote separately for all purposes.
Interest on the 2026 Notes will accrue at a rate of 5.900% per annum, and interest on the 2028 Notes will accrue at a rate of 5.950% per annum. Interest on each series of notes will be payable semi-annually in arrears
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