Advance Auto Parts 2010 Annual Report Download - page 102

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ADVANCE AUTO PARTS, INC.
SCHEDULE I – CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT
Notes to the Condensed Parent Company Statements
January 1, 2011 and January 2, 2010
(in thousands, except per share data)
See Notes to the Consolidated Financial Statements for Additional Disclosures.
F-48
The Notes bear interest at a rate of 5.75% per year payable semi-annually in arrears on May 1 and November 1
of each year, commencing on November 1, 2010. The Company may redeem some or all of the Notes at any time or
from time to time, at the redemption price described in the Indenture. In addition, in the event of a Change of
Control Triggering Event (as defined in the Indenture), the Company will be required to offer to repurchase the
notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase
date. The Notes initially will be fully and unconditionally guaranteed, jointly and severally, on an unsubordinated
and unsecured basis by each of the subsidiary guarantors. The Company will be permitted to release guarantees
without the consent of holders of the Notes under the circumstances described in the Indenture.
The Indenture contains customary provisions for events of default including for (i) failure to pay principal or
interest when due and payable, (ii) failure to comply with covenants or agreements in the Indenture or the Notes and
failure to cure or obtain a waiver of such default upon notice, (iii) a default under any debt for money borrowed by
the Company or any of its subsidiaries that results in acceleration of the maturity of such debt, or failure to pay any
such debt within any applicable grace period after final stated maturity, in an aggregate amount greater than $25,000
without such debt having been discharged or acceleration having been rescinded or annulled within 10 days after
receipt by the Company of notice of the default by the Trustee or holders of not less than 25% in aggregate principal
amount of the Notes then outstanding, and (iv) events of bankruptcy, insolvency or reorganization affecting the
Company and certain of its subsidiaries. In the case of an event of default, the principal amount of the Notes plus
accrued and unpaid interest may be accelerated. The Indenture also contains covenants limiting the ability of the
Company and its subsidiaries to incur debt secured by liens and to enter into sale and lease-back transactions.
Bank Debt
The Company fully and unconditionally guarantees the revolving credit facility of Stores. The revolving credit
agreement does not contain restrictions on the payment of dividends, loans or advances between the Company and
Stores and Stores’ subsidiaries. Therefore, there are no such restrictions as of January 1, 2011 and January 2, 2010.
4. Commitments and Contingencies
The Company has indirect commitments and contingencies through Stores. For a discussion of the
commitments and contingencies of the consolidated company, see Notes 15 and 17 of the consolidated financial
statements.