Advance Auto Parts 2005 Annual Report Download - page 53

properties and assets of its existing domestic sub-
sidiaries and will be secured by the properties and
assets of its future domestic subsidiaries.
The senior credit facility contains covenants
restricting the ability of the Company and its sub-
sidiaries to, among other things, (1) declare dividends
or redeem or repurchase capital stock, (2) prepay,
redeem or purchase debt, (3) incur liens or engage in
sale-leaseback transactions, (4) make loans and
investments, (5) incur additional debt (including
hedging arrangements), (6) engage in certain mergers,
acquisitions and asset sales, (7) engage in transac-
tions with affiliates, (8) change the nature of the
Company’s business and the business conducted by
its subsidiaries and (9) change the holding company
status of the Company. The Company is required to
comply with financial covenants with respect to a
maximum leverage ratio, a minimum interest cover-
age ratio, a minimum current assets to funded senior
debt ratio, a maximum senior leverage ratio and max-
imum limits on capital expenditures.
During fiscal 2003, the Company completed the
redemption of its outstanding senior subordinated
notes and senior discount debentures. Incremental
facilities were added to fund the redemption in the
form of a tranche A-1 term loan facility of $75,000
and tranche C-1 term loan facility of $275,000. In
conjunction with this redemption and overall partial
repayment of $54,433, the Company wrote-off
deferred financing costs. The write-off of these costs
combined with the accretion of the discounts and
related premiums paid on the repurchase of the senior
subordinated notes and senior discount debentures
resulted in a loss on extinguishment of debt of
$46,887 in the accompanying consolidated statements
of operations for the year ended January 3, 2004.
During the remainder of fiscal 2003, the Company
repaid $236,089 of its terms loans under the senior
credit facility. In conjunction with this partial repay-
ment, the Company wrote-off additional deferred
financing costs in the amount of $401, which is clas-
sified as a loss on extinguishment of debt in the
accompanying consolidated statements of operations
for the year ended January 3, 2004. Additionally in
December 2003, the Company refinanced the
remaining portion of its tranche A, A-1, C and C-1
term loan facilities under the previous senior credit
facility by amending and restating the credit facility
to add a new $100,000 tranche D term loan facility
and $340,000 tranche E term loan facility. The bor-
rowings under the tranche D term loan facility and
tranche E term loan facility were used to replace the
tranche A, A-1, C and C-1 term loan facilities.
As of December 31, 2005, the Company was
in compliance with the covenants of the senior
credit facility. Substantially all of the net assets of
the Company’s subsidiaries are restricted at
December 31, 2005.
At December 31, 2005, the aggregate future annual
maturities of long-term debt are as follows:
2006 ............................................................................ $ 32,760
2007 ............................................................................ 32,093
2008 ............................................................................ 63,450
2009 ............................................................................ 52,771
2010 ............................................................................ 257,573
Thereafter.................................................................... 153
$438,800
14. STOCK REPURCHASE PROGRAM:
During the third quarter of fiscal 2005, the
Company’s Board of Directors authorized a stock
repurchase program of up to $300,000 of the
Company’s common stock plus related expenses. The
program, which became effective August 15, 2005,
replaced the remaining portion of a $200,000 stock
repurchase program authorized by the Company’s
Board of Directors during fiscal 2004. The program
allows the Company to repurchase its common stock
on the open market or in privately negotiated transac-
tions from time to time in accordance with the
requirements of the Securities and Exchange
Commission. During fiscal 2005, the Company
repurchased a total of 1,530,675 shares of common
stock under the new program, at an aggregate cost of
$59,452, or an average price of $38.84 per share,
excluding related expenses. At December 31, 2005,
20,800 shares remained unsettled representing $889.
Advance Auto Parts I Annual Report 2005 I 51