Does Energy Transfer guarantee the payment of the principal amount for all of Aplus's Senior Notes?

According to Aplus's 2024 Franchise Disclosure Document, Energy Transfer provides a guarantee specifically for the payment of the principal amount of the 5.875% Senior Notes due in 2028. However, the document states that Energy Transfer is not subject to any of the covenants under the Indenture.

This means that while Energy Transfer guarantees the principal for one specific series of senior notes, it does not guarantee the principal amount for all of Aplus's Senior Notes. The Senior Notes are senior obligations of the Issuers and are guaranteed by all of the Partnership's existing subsidiaries and certain of its future subsidiaries. The Senior Notes and guarantees are unsecured and rank equally with all of the Issuers' and each Guarantor's existing and future senior obligations.

For a prospective Aplus franchisee, this distinction is important because it clarifies the extent of Energy Transfer's financial commitment to Aplus's debt obligations. While some of the debt is guaranteed, other Senior Notes are not guaranteed by Energy Transfer, but by the Partnership's subsidiaries. This could affect the overall financial stability and risk profile of Aplus.

It is important to note that the Senior Notes and guarantees are effectively subordinated to the Issuers' and each Guarantor's secured obligations, including obligations under the Partnership's Credit Facility, to the extent of the value of the collateral securing such obligations, and structurally subordinated to all indebtedness and obligations, including trade payables, of the Partnership's subsidiaries that do not guarantee the Senior Notes.