Advance Auto Parts Upsizes Senior Notes Offering to $1.95B, Prices $975M in 2030 and $975M in 2033 Notes.

Advance Auto Parts has priced a $1.95 billion offering of senior notes due 2030 and 2033. The notes will be guaranteed by the company's domestic subsidiaries and will be used to redeem its existing 2026 notes and contribute to the initial borrowing base for its new asset-based loan revolving credit facility. The facility will provide for a five-year senior secured first lien asset-based revolving credit facility of up to $1 billion.

Title: Advance Auto Parts Prices $1.95 Billion in Senior Notes

Raleigh, N.C. -- Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider, has priced an offering of $975 million in senior notes due 2030 and $975 million in senior notes due 2033. The notes, which will be guaranteed by the company's domestic subsidiaries, will be used to redeem its existing 5.90% Senior Notes due March 9, 2026, and to contribute to the initial borrowing base for its new asset-based loan revolving credit facility.

The new asset-based loan revolving credit facility (ABL Facility) will provide for a five-year senior secured first lien asset-based revolving credit facility of up to $1 billion, with an expected uncommitted accordion feature. The facility is set to replace the company's existing credit facility and is expected to close on or about August 4, 2025, subject to customary closing conditions.

The 2030 Notes will pay interest semi-annually in arrears at a rate of 7.000%, and the 2033 Notes will pay interest semi-annually in arrears at a rate of 7.375%. The notes will mature on August 1, 2030, and August 1, 2033, respectively, unless redeemed earlier in accordance with their terms.

Advance Auto Parts intends to use a portion of the net proceeds from the notes to redeem its 2026 Notes and for general corporate purposes. Additionally, a portion of the net proceeds from the offering, together with cash on hand, is expected to be contributed as qualified cash to the initial borrowing base for the ABL Facility in an initial amount not to exceed $2.5 billion.

The notes and related guarantees have not been and will not be registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction. They will be offered only to qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S.

This press release is not an offer to sell or a solicitation of an offer to buy any securities. Forward-looking statements included in this release are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements.

References:
[1] https://finance.yahoo.com/news/advance-auto-parts-announces-proposed-115100457.html
[2] https://www.stocktitan.net/news/AAP/advance-auto-parts-announces-pricing-of-upsized-1-95-billion-in-r9eq5xgijnap.html