Regarding Aplus's Senior Notes, who are the Issuers?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
The terms of each tranche of the Partnership's senior notes (the "Senior Notes") are governed by indentures among the Partnership and Sunoco Finance Corp. (together, the "Issuers"), and certain other subsidiaries of the Partnership (the "Guarantors") and U.S. Bank National Association, as trustee. 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. 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 (as defined below), 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.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, the issuers of the Senior Notes are the Partnership and Sunoco Finance Corp. The Senior Notes are governed by indentures among the Issuers, certain other subsidiaries of the Partnership (the Guarantors), and U.S. Bank National Association, as trustee.
The Senior Notes represent senior obligations of the Issuers and are guaranteed by all of the Partnership's existing subsidiaries and certain of its future subsidiaries. These notes and guarantees are unsecured and rank equally with all of the Issuers' and each Guarantor's existing and future senior obligations.
However, 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. They are also structurally subordinated to all indebtedness and obligations, including trade payables, of the Partnership's subsidiaries that do not guarantee the Senior Notes. This means that in the event of a financial downturn, the lenders of secured obligations and the subsidiaries without guarantees would be paid before the holders of the Senior Notes.