[8-K] ADVANCE AUTO PARTS INC Reports Material Event
Advance Auto Parts, Inc. entered into a new five-year senior secured first-lien asset-based revolving credit facility providing up to $1.0 billion of commitments, subject to a borrowing base. The facility is secured by substantially all accounts receivable, inventory, certain deposit accounts and related assets, and is guaranteed by subsidiaries that guarantee the company鈥檚 recent senior notes and certain Canadian subsidiaries.
The borrowing base is calculated using specified advance rates (90% of eligible credit card receivables, 85% of eligible trade receivables, 85% of eligible inventory liquidation value and 100% of qualified cash subject to limits) and customary reserves. Interest margins range from 厂翱贵搁+1.25%鈥�1.75% or alternate base rate + 0.25%鈥�0.75%, with unused commitment fees of 0.25%鈥�0.30%. The company also furnished a press release reporting its second-quarter financial results as an exhibit to the report.
Advance Auto Parts, Inc. ha stipulato una nuova linea di credito rotativa quinquennale senior garantita di primo grado, basata sugli attivi, con impegni fino a $1.0 billion, soggetti a una base di prestito. La facilit脿 猫 garantita sostanzialmente da tutti i crediti verso clienti, dalle scorte, da determinati conti di deposito e beni correlati, ed 猫 garantita da filiali che garantiscono le recenti note senior della societ脿 e da alcune filiali canadesi.
La base di prestito viene calcolata applicando tassi di anticipo specificati (90% dei crediti eleggibili da carte di credito, 85% dei crediti commerciali eleggibili, 85% del valore di liquidazione delle scorte eleggibili e 100% della liquidit脿 qualificata, soggetta a limiti) e riserve consuete. I margini d'interesse variano da 厂翱贵搁+1.25%鈥�1.75% oppure tasso base alternativo + 0.25%鈥�0.75%, con commissioni sugli impegni non utilizzati pari a 0.25%鈥�0.30%. La societ脿 ha inoltre allegato alla relazione un comunicato stampa con i risultati finanziari del secondo trimestre come documento espositivo.
Advance Auto Parts, Inc. suscribi贸 una nueva facilidad de cr茅dito renovable senior garantizada de primer gravamen a cinco a帽os, basada en activos, con compromisos de hasta $1.0 billion, sujetos a una base de endeudamiento. La facilidad est谩 garantizada por sustancialmente todas las cuentas por cobrar, el inventario, ciertas cuentas de dep贸sito y activos relacionados, y est谩 avalada por filiales que garantizan los recientes bonos senior de la compa帽铆a y por algunas filiales canadienses.
La base de endeudamiento se calcula aplicando porcentajes de adelanto especificados (90% de las cuentas por cobrar de tarjetas de cr茅dito elegibles, 85% de las cuentas por cobrar comerciales elegibles, 85% del valor de liquidaci贸n del inventario elegible y 100% del efectivo calificado sujeto a l铆mites) y reservas habituales. Los m谩rgenes de inter茅s oscilan entre 厂翱贵搁+1.25%鈥�1.75% o tasa base alternativa + 0.25%鈥�0.75%, con comisiones por compromisos no utilizados de 0.25%鈥�0.30%. La compa帽铆a tambi茅n present贸 como anexo a su informe un comunicado de prensa con los resultados financieros del segundo trimestre.
Advance Auto Parts, Inc.電� 靸堧 5雲� 毵岅赴 鞁滊媹鞏� 雼措炒 靹犾垳鞙� 鞛愳偘雼措炒 須岇爠鞁犾毄鞁滌劋鞚� 觳搓舶頄堨溂氅�, 彀瀰頃滊弰電� 雽�於� 旮办磮(氤措鞛� 氩犾澊鞀�)鞐� 霐半澕 斓滊寑 $1.0 billion旯岇 鞝滉车霅╇媹雼�. 鞚� 鞁滌劋鞚� 鞁れ鞝侅溂搿� 氇摖 鞕胳儊毵れ稖旮�, 鞛碃, 韸轨爼 鞓堦笀瓿勳 氚� 甏�霠� 鞛愳偘鞙茧 雼措炒霅橂┌, 須岇偓鞚� 斓滉芳 鞁滊媹鞏� 毂勱秾鞚� 氤挫頃橂姅 鞛愴殞靷摛瓿� 鞚茧秬 旌愲倶雼� 鞛愴殞靷摛鞚� 氤挫頃╇媹雼�.
彀瀰 旮办(氤措鞛� 氩犾澊鞀�)鞚� 歆�鞝曤悳 靹犾旮� 牍勳湪鞚� 鞝侅毄頃橃棳 靷办爼霅╇媹雼�(90%鞚� 鞝侁博 鞁犾毄旃措摐 毵れ稖毂勱秾, 85%鞚� 鞝侁博 毵れ稖毂勱秾, 鞝侁博 鞛碃 觳偘臧�旃橃潣 85%, 攴鸽Μ瓿� 頃滊弰 鞝侅毄 雽�靸侅潣 鞝侁博 順勱笀 100%) 氚� 韱奠儊鞝侅澑 鞙犽炒鞎§潉 氚橃榿頃╇媹雼�. 鞚挫瀽 毵堨鞚� 厂翱贵搁+1.25%鈥�1.75% 霕愲姅 雽�觳� 旮办旮堧Μ + 0.25%鈥�0.75% 氩旍渼鞚措┌, 氙胳偓鞖� 鞎届爼 靾橃垬耄岆姅 0.25%鈥�0.30%鞛呺媹雼�. 須岇偓電� 霕愴暅 攵勱赴氤搓碃靹滌潣 攵�靻� 靹滊搿� 2攵勱赴 鞛鞁れ爜鞚� 氚滍憸頃橂姅 氤措弰鞛愲毳� 鞝滌稖頄堨姷雼堧嫟.
Advance Auto Parts, Inc. a conclu une nouvelle facilit茅 de cr茅dit renouvelable senior garantie de premier rang d'une dur茅e de cinq ans, adoss茅e aux actifs, offrant des engagements pouvant aller jusqu'脿 $1.0 billion, soumis 脿 une borrowing base. La facilit茅 est garantie par l'essentiel des comptes clients, des stocks, de certains comptes de d茅p么t et des actifs connexes, et est garantie par des filiales qui garantissent les r茅cents titres senior de la soci茅t茅 ainsi que par certaines filiales canadiennes.
La borrowing base est calcul茅e en appliquant des taux d'avance sp茅cifi茅s (90% des cr茅ances sur cartes de cr茅dit 茅ligibles, 85% des cr茅ances commerciales 茅ligibles, 85% de la valeur de liquidation des stocks 茅ligibles et 100% des liquidit茅s qualifi茅es sous r茅serve de limites) et des r茅serves usuelles. Les marges d'int茅r锚t varient entre 厂翱贵搁+1.25%鈥�1.75% ou taux de base alternatif + 0.25%鈥�0.75%, avec des frais sur engagements non utilis茅s de 0.25%鈥�0.30%. La soci茅t茅 a 茅galement joint en annexe au rapport un communiqu茅 de presse faisant 茅tat de ses r茅sultats financiers du deuxi猫me trimestre.
Advance Auto Parts, Inc. hat eine neue f眉nfj盲hrige Senior-gesicherte revolvierende Kreditfazilit盲t mit vorrangigem ersten Pfandrecht abgeschlossen, die auf Verm枚genswerten basiert und Verpflichtungen von bis zu $1.0 billion vorsieht, vorbehaltlich einer Borrowing Base. Die Fazilit盲t ist durch im Wesentlichen alle Forderungen, Vorr盲te, bestimmte Einlagenkonten und zugeh枚rige Verm枚genswerte besichert und wird von Tochtergesellschaften garantiert, die bereits die j眉ngsten Senior Notes des Unternehmens garantieren, sowie von bestimmten kanadischen Tochtergesellschaften.
Die Borrowing Base wird anhand festgelegter Vorauszahlungsquoten berechnet (90% der qualifizierten Kreditkartenforderungen, 85% der qualifizierten Handelsforderungen, 85% des Liquidationswerts der qualifizierten Vorr盲te und 100% qualifizierter Barmittel, jeweils unter Vorbehalt von H枚chstgrenzen) sowie 眉blichen Reserven. Die Zinsspannen liegen zwischen 厂翱贵搁+1.25%鈥�1.75% oder alternativer Basiszinssatz + 0.25%鈥�0.75%, mit Geb眉hren f眉r nicht in Anspruch genommene Commitment-Linien von 0.25%鈥�0.30%. Das Unternehmen reichte zudem eine Pressemitteilung mit den Finanzergebnissen des zweiten Quartals als Anlage zum Bericht ein.
- $1.0 billion five-year senior secured ABL provides a defined source of revolving liquidity
- Facility is secured by core operating assets (accounts receivable, inventory, deposit accounts), aligning lender collateral with company working capital
- Borrowing base explicitly includes qualified cash (partially funded from recent senior notes) as initial availability
- Interest pricing tied to market benchmarks (SOFR or alternate base rate) with transparent margin ranges (厂翱贵搁+1.25%鈥�1.75%)
- Availability is subject to a borrowing base with customary reserves (including supply chain and debt maturity reserves) that can materially reduce capacity
- Presence of a springing 1:1 fixed charge coverage ratio covenant and cross-default provisions could restrict borrowings under adverse conditions
- Qualified cash held under control agreements and a dominion trigger may limit access to designated cash if excess availability metrics deteriorate
Insights
TL;DR: The $1.0B five-year ABL materially increases secured liquidity and ties borrowing capacity to a well-defined collateral borrowing base.
The facility provides up to $1.0 billion of revolver capacity with a first-lien on receivables, inventory and certain deposit accounts, enhancing near-term liquidity profile. The borrowing base uses conservative advance rates and allows inclusion of qualified cash from the recent senior notes offering, which was designated to the initial borrowing base. Pricing is tied to SOFR or an alternate base rate with modest unused fees, and customary reserves and a dominion trigger could reduce availability. Overall, this is a material financing action that formalizes secured liquidity under standard ABL mechanics.
TL;DR: The agreement contains customary but potentially restrictive covenants and springing triggers that may constrain availability under stress.
The ABL includes customary limitations on indebtedness, liens and restricted payments, and a springing 1:1 fixed charge coverage ratio covenant that can limit draws if coverage falls. Supply chain and debt-maturity reserves, qualified cash dominion triggers and control agreements also introduce operational conditions that can reduce access to borrowing capacity. These provisions are standard for ABLs but are material for liquidity planning and covenant compliance monitoring.
Advance Auto Parts, Inc. ha stipulato una nuova linea di credito rotativa quinquennale senior garantita di primo grado, basata sugli attivi, con impegni fino a $1.0 billion, soggetti a una base di prestito. La facilit脿 猫 garantita sostanzialmente da tutti i crediti verso clienti, dalle scorte, da determinati conti di deposito e beni correlati, ed 猫 garantita da filiali che garantiscono le recenti note senior della societ脿 e da alcune filiali canadesi.
La base di prestito viene calcolata applicando tassi di anticipo specificati (90% dei crediti eleggibili da carte di credito, 85% dei crediti commerciali eleggibili, 85% del valore di liquidazione delle scorte eleggibili e 100% della liquidit脿 qualificata, soggetta a limiti) e riserve consuete. I margini d'interesse variano da 厂翱贵搁+1.25%鈥�1.75% oppure tasso base alternativo + 0.25%鈥�0.75%, con commissioni sugli impegni non utilizzati pari a 0.25%鈥�0.30%. La societ脿 ha inoltre allegato alla relazione un comunicato stampa con i risultati finanziari del secondo trimestre come documento espositivo.
Advance Auto Parts, Inc. suscribi贸 una nueva facilidad de cr茅dito renovable senior garantizada de primer gravamen a cinco a帽os, basada en activos, con compromisos de hasta $1.0 billion, sujetos a una base de endeudamiento. La facilidad est谩 garantizada por sustancialmente todas las cuentas por cobrar, el inventario, ciertas cuentas de dep贸sito y activos relacionados, y est谩 avalada por filiales que garantizan los recientes bonos senior de la compa帽铆a y por algunas filiales canadienses.
La base de endeudamiento se calcula aplicando porcentajes de adelanto especificados (90% de las cuentas por cobrar de tarjetas de cr茅dito elegibles, 85% de las cuentas por cobrar comerciales elegibles, 85% del valor de liquidaci贸n del inventario elegible y 100% del efectivo calificado sujeto a l铆mites) y reservas habituales. Los m谩rgenes de inter茅s oscilan entre 厂翱贵搁+1.25%鈥�1.75% o tasa base alternativa + 0.25%鈥�0.75%, con comisiones por compromisos no utilizados de 0.25%鈥�0.30%. La compa帽铆a tambi茅n present贸 como anexo a su informe un comunicado de prensa con los resultados financieros del segundo trimestre.
Advance Auto Parts, Inc.電� 靸堧 5雲� 毵岅赴 鞁滊媹鞏� 雼措炒 靹犾垳鞙� 鞛愳偘雼措炒 須岇爠鞁犾毄鞁滌劋鞚� 觳搓舶頄堨溂氅�, 彀瀰頃滊弰電� 雽�於� 旮办磮(氤措鞛� 氩犾澊鞀�)鞐� 霐半澕 斓滊寑 $1.0 billion旯岇 鞝滉车霅╇媹雼�. 鞚� 鞁滌劋鞚� 鞁れ鞝侅溂搿� 氇摖 鞕胳儊毵れ稖旮�, 鞛碃, 韸轨爼 鞓堦笀瓿勳 氚� 甏�霠� 鞛愳偘鞙茧 雼措炒霅橂┌, 須岇偓鞚� 斓滉芳 鞁滊媹鞏� 毂勱秾鞚� 氤挫頃橂姅 鞛愴殞靷摛瓿� 鞚茧秬 旌愲倶雼� 鞛愴殞靷摛鞚� 氤挫頃╇媹雼�.
彀瀰 旮办(氤措鞛� 氩犾澊鞀�)鞚� 歆�鞝曤悳 靹犾旮� 牍勳湪鞚� 鞝侅毄頃橃棳 靷办爼霅╇媹雼�(90%鞚� 鞝侁博 鞁犾毄旃措摐 毵れ稖毂勱秾, 85%鞚� 鞝侁博 毵れ稖毂勱秾, 鞝侁博 鞛碃 觳偘臧�旃橃潣 85%, 攴鸽Μ瓿� 頃滊弰 鞝侅毄 雽�靸侅潣 鞝侁博 順勱笀 100%) 氚� 韱奠儊鞝侅澑 鞙犽炒鞎§潉 氚橃榿頃╇媹雼�. 鞚挫瀽 毵堨鞚� 厂翱贵搁+1.25%鈥�1.75% 霕愲姅 雽�觳� 旮办旮堧Μ + 0.25%鈥�0.75% 氩旍渼鞚措┌, 氙胳偓鞖� 鞎届爼 靾橃垬耄岆姅 0.25%鈥�0.30%鞛呺媹雼�. 須岇偓電� 霕愴暅 攵勱赴氤搓碃靹滌潣 攵�靻� 靹滊搿� 2攵勱赴 鞛鞁れ爜鞚� 氚滍憸頃橂姅 氤措弰鞛愲毳� 鞝滌稖頄堨姷雼堧嫟.
Advance Auto Parts, Inc. a conclu une nouvelle facilit茅 de cr茅dit renouvelable senior garantie de premier rang d'une dur茅e de cinq ans, adoss茅e aux actifs, offrant des engagements pouvant aller jusqu'脿 $1.0 billion, soumis 脿 une borrowing base. La facilit茅 est garantie par l'essentiel des comptes clients, des stocks, de certains comptes de d茅p么t et des actifs connexes, et est garantie par des filiales qui garantissent les r茅cents titres senior de la soci茅t茅 ainsi que par certaines filiales canadiennes.
La borrowing base est calcul茅e en appliquant des taux d'avance sp茅cifi茅s (90% des cr茅ances sur cartes de cr茅dit 茅ligibles, 85% des cr茅ances commerciales 茅ligibles, 85% de la valeur de liquidation des stocks 茅ligibles et 100% des liquidit茅s qualifi茅es sous r茅serve de limites) et des r茅serves usuelles. Les marges d'int茅r锚t varient entre 厂翱贵搁+1.25%鈥�1.75% ou taux de base alternatif + 0.25%鈥�0.75%, avec des frais sur engagements non utilis茅s de 0.25%鈥�0.30%. La soci茅t茅 a 茅galement joint en annexe au rapport un communiqu茅 de presse faisant 茅tat de ses r茅sultats financiers du deuxi猫me trimestre.
Advance Auto Parts, Inc. hat eine neue f眉nfj盲hrige Senior-gesicherte revolvierende Kreditfazilit盲t mit vorrangigem ersten Pfandrecht abgeschlossen, die auf Verm枚genswerten basiert und Verpflichtungen von bis zu $1.0 billion vorsieht, vorbehaltlich einer Borrowing Base. Die Fazilit盲t ist durch im Wesentlichen alle Forderungen, Vorr盲te, bestimmte Einlagenkonten und zugeh枚rige Verm枚genswerte besichert und wird von Tochtergesellschaften garantiert, die bereits die j眉ngsten Senior Notes des Unternehmens garantieren, sowie von bestimmten kanadischen Tochtergesellschaften.
Die Borrowing Base wird anhand festgelegter Vorauszahlungsquoten berechnet (90% der qualifizierten Kreditkartenforderungen, 85% der qualifizierten Handelsforderungen, 85% des Liquidationswerts der qualifizierten Vorr盲te und 100% qualifizierter Barmittel, jeweils unter Vorbehalt von H枚chstgrenzen) sowie 眉blichen Reserven. Die Zinsspannen liegen zwischen 厂翱贵搁+1.25%鈥�1.75% oder alternativer Basiszinssatz + 0.25%鈥�0.75%, mit Geb眉hren f眉r nicht in Anspruch genommene Commitment-Linien von 0.25%鈥�0.30%. Das Unternehmen reichte zudem eine Pressemitteilung mit den Finanzergebnissen des zweiten Quartals als Anlage zum Bericht ein.
| (State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| Title of each class | Trading symbol | Name of each exchange on which registered | ||||||||||||
| Exhibit No. | Exhibit Description | ||||
10.1 | Credit Agreement, dated August 12, 2025 among Advance Auto Parts, Inc., each of the subsidiary guarantors party thereto and Bank of America, N.A., as Administrative Agent. | ||||
99.1 | Press Release, dated August 14, 2025, issued by Advance Auto Parts, Inc. | ||||
| 101.1 | Pursuant to Rule 406 of Regulation S-T, the cover page to this Current Report on Form 8-K is formatted in Inline XBRL. | ||||
| 104.1 | Cover Page Interactive Data File (embedded within the Inline XBRL document included in Exhibit 101.1) | ||||
| ADVANCE AUTO PARTS, INC. | ||||||||
| August 14, 2025 | /s/ Ryan P. Grimsland | |||||||
| Ryan P. Grimsland | ||||||||
Executive Vice President, Chief Financial Officer | ||||||||
Source:
FAQ
What did Advance Auto Parts (AAP) announce in this 8-K?
How is the borrowing base for AAP's ABL Facility calculated?
What collateral and guarantors support AAP's new ABL Facility?
What are the pricing terms and fees for the ABL Facility?
Does the ABL include any covenants or trigger provisions?
