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Advance Auto Parts Announces Pricing of Upsized $1.95 Billion in Aggregate Senior Notes Due 2030 and 2033
Advance Auto Parts Announces Pricing of Upsized $1.95 Billion in Aggregate Senior Notes Due 2030 and 2033

Business Wire

time2 days ago

  • Automotive
  • Business Wire

Advance Auto Parts Announces Pricing of Upsized $1.95 Billion in Aggregate Senior Notes Due 2030 and 2033

RALEIGH, N.C.--(BUSINESS WIRE)--Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America that serves both professional installer and do-it-yourself customers ('Advance' or the 'Company'), announced today that it has priced an offering of $975 million in aggregate principal amount of senior notes due 2030 (the '2030 Notes') and $975 million in aggregate principal amount of senior notes due 2033 (the '2033 Notes' and, together with the 2030 Notes, the 'Notes') in a private transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the 'Act'). The 2030 Notes will pay interest semi-annually in arrears at a rate of 7.000% and will mature on August 1, 2030, unless redeemed earlier in accordance with their terms. The 2033 Notes will pay interest semi-annually in arrears at a rate of 7.375% and will mature on August 1, 2033, unless redeemed earlier in accordance with their terms. The Notes will be guaranteed by each of Advance's wholly-owned domestic subsidiaries that are expected to guarantee its ABL Facility (as defined below) and each of Advance's domestic subsidiaries that in the future guarantees its ABL Facility or certain other indebtedness. Advance expects to close the sale of the Notes on or about August 4, 2025, subject to the satisfaction of customary closing conditions. Substantially concurrently with the closing of the notes offering, Advance expects to enter into a new asset-based loan revolving credit facility (the 'ABL Facility') to replace its existing credit facility. The ABL Facility will provide for a five-year senior secured first lien asset-based revolving credit facility of up to $1,000 million with an expected uncommitted accordion feature, subject to a borrowing base thereunder. Advance intends to use a portion of the net proceeds from the Notes to redeem all of its outstanding 5.90% Senior Notes due March 9, 2026 (the '2026 Notes') and for general corporate purposes. In addition, 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. There can be no assurance that the offering of the Notes or the ABL Facility will be completed. For the avoidance of doubt, this press release does not constitute a redemption notice or an offer to redeem or sell any of the 2026 Notes. The Notes and the related guarantees have not been and will not be registered under the Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act. The Notes and the related guarantees will be offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S. About Advance Auto Parts Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installers and do-it-yourself customers. As of April 19, 2025, Advance operated 4,285 stores primarily within the United States, with additional locations in Canada, Puerto Rico, and the U.S. Virgin Islands. The company also served 881 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. No Offer or Solicitation This press release is not an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sales of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Forward-Looking Statements Certain statements herein are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as 'anticipate,' 'believe,' 'could,' 'estimate,' 'expect,' 'forecast, 'guidance,' 'intend,' 'likely,' 'may,' 'plan,' 'position,' 'possible,' 'potential,' 'probable,' 'project,' 'should,' 'strategy,' 'target,' 'will,' or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the proposed Notes offering, the refinancing of the Company's existing credit facility with the planned ABL Facility, the redemption of the 2026 Notes with a portion of the net proceeds of the offering and the other expected use of proceeds. Forward-looking statements reflect the Company's views based on historical results, current information and assumptions related to future developments. Except as may be required by law, the Company undertakes no obligation to update any forward-looking statements made herein. Forward-looking statements 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. Please refer to ' Item 1A. Risk Factors ' of the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ('SEC'), as updated by the Company's subsequent filings with the SEC, for a description of these and other risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements.

3 Unprofitable Stocks We Steer Clear Of
3 Unprofitable Stocks We Steer Clear Of

Yahoo

time2 days ago

  • Automotive
  • Yahoo

3 Unprofitable Stocks We Steer Clear Of

Unprofitable companies face headwinds as they struggle to keep operating expenses under control. Some may be investing heavily, but the majority fail to convert spending into sustainable growth. Unprofitable companies face an uphill battle, but not all are created equal. Luckily for you, StockStory is here to separate the promising ones from the weak. That said, here are three unprofitable companiesto steer clear of and a few better alternatives. Advance Auto Parts (AAP) Trailing 12-Month GAAP Operating Margin: -10.1% Founded in Virginia in 1932, Advance Auto Parts (NYSE:AAP) is an auto parts and accessories retailer that sells everything from carburetors to motor oil to car floor mats. Why Should You Dump AAP? Disappointing same-store sales over the past two years show customers aren't responding well to its product selection and store experience Operating margin declined by 10.4 percentage points over the last year as its sales cratered Depletion of cash reserves could lead to a fundraising event that triggers shareholder dilution Advance Auto Parts's stock price of $58.17 implies a valuation ratio of 27.4x forward P/E. Check out our free in-depth research report to learn more about why AAP doesn't pass our bar. 1-800-FLOWERS (FLWS) Trailing 12-Month GAAP Operating Margin: -2.8% Founded in 1976, 1-800-FLOWERS (NASDAQ:FLWS) is an online retailer of flowers, gifts, and gourmet foods, serving customers globally. Why Should You Sell FLWS? Annual revenue declines of 9.9% over the last two years indicate problems with its market positioning Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 18.4% annually Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions 1-800-FLOWERS is trading at $6.28 per share, or 21.6x forward P/E. Read our free research report to see why you should think twice about including FLWS in your portfolio, it's free. EVgo (EVGO) Trailing 12-Month GAAP Operating Margin: -47.9% Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ:EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States. Why Does EVGO Give Us Pause? Suboptimal cost structure is highlighted by its history of operating margin losses Cash-burning history makes us doubt the long-term viability of its business model Unfavorable liquidity position could lead to additional equity financing that dilutes shareholders At $3.60 per share, EVgo trades at 30.6x forward EV-to-EBITDA. Dive into our free research report to see why there are better opportunities than EVGO. Stocks We Like More When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Why Advance Auto Parts Stock Plummeted Today
Why Advance Auto Parts Stock Plummeted Today

Yahoo

time4 days ago

  • Automotive
  • Yahoo

Why Advance Auto Parts Stock Plummeted Today

Key Points Advance Auto Parts told investors today it's on track to beat sales estimates this quarter. Advance also said it will be taking on more debt -- a lot more. 10 stocks we like better than Advance Auto Parts › Advance Auto Parts (NYSE: AAP) stock tumbled 7.3% through 1 p.m. ET Thursday, leaving investors wondering "what went wrong?" The auto parts retailer preannounced "highlights" from its Q2 earnings today, and the highlight-iest part of all was this: Q2 revenue that Wall Street predicted at $1.97 billion will definitely beat that number, and might rise as high as $2 billion. Advance Auto Parts Q2 earnings So what's wrong with that, you ask? According to Advance Auto Parts, the company's turnaround is progressing, and sales are tracking toward "the upper range of our expectations." Same-store sales look positive, up perhaps 0.1%, and adjusted operating margins could rise as high as 3%. That's the good news. Now here's the bad: Advance Auto Parts also announced today that to further its turnaround, it's issuing $1.5 billion-worth of senior unsecured notes (i.e., debt) in two tranches, coming due in 2030 and 2033, respectively, and entering into a new asset-based loan revolving credit facility (which is also debt) as well. Is Advance Auto Parts stock a sell? At least some of the new debt will be used to roll over old debt coming due in 2026, with the rest going to "general corporate purposes." Advance Auto Parts kind of needs to do this, because it's currently burning cash at the rate of more than $250 million a year, and really needs some cash. Advance hasn't yet told us whether its new debt will pay interest higher or lower than the debt it's paying off, however, making it hard to say if this is good news for the stock. All I can say for sure now is that it looks like the company's total debt load appears to be getting bigger -- and that, at least, doesn't seem like good news at all. Should you buy stock in Advance Auto Parts right now? Before you buy stock in Advance Auto Parts, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Advance Auto Parts wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Advance Auto Parts Stock Plummeted Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

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