Filed pursuant to Rule 424(b)(3)
File No. 333-87442
PROSPECTUS SUPPLEMENT NO. 2
(To Prospectus dated June 5, 2002)
$1,380,000,000
Gap Inc.
5.75% Senior Convertible Notes due 2009 and
85,607,940 Shares of Common Stock Issuable
upon Conversion of the Notes
This prospectus supplement supplements the prospectus dated June 5, 2002,
as amended or supplemented, of The Gap, Inc. relating to the sale from time to
time by certain of our security holders (including their transferors, donees,
pledgees or successors) of up to $1,380,000,000 aggregate principal amount at
maturity of our 5.75% Senior Convertible Notes due 2009 and the shares of common
stock issuable upon conversion of the notes. You should read this prospectus
supplement in conjunction with the prospectus, and this prospectus supplement is
qualified by reference to the prospectus, except to the extent that the
information in this prospectus supplement supersedes the information contained
in the prospectus.
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Investing in the notes or the common stock into which the notes are
convertible involves risks. See "Risk Factors" beginning on page 5 of the
accompanying prospectus.
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Neither the Securities and Exchange Commission, any state securities
commission nor any other U.S. regulatory authority, has approved or disapproved
the securities nor have any of the foregoing authorities passed upon or endorsed
the merits of this offering or the accuracy or adequacy of this prospectus. Any
representation to the contrary is a criminal offense.
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The table of selling security holders contained in the prospectus is hereby
amended to add the entities who are named below as selling security holders:
Aggregate principal Number of shares
amount at maturity of common stock Percentage
of notes that may Percentage that of shares of
be sold by this of notes may be sold by common stock
Name prospectus outstanding this prospectus outstanding
------------------------------------------------------ ------------------- ----------- ---------------- ------------
AFTRA Health Fund .................................... 165,000 * 10,236 *
Bank Austria Cayman Islands, LTD. .................... 1,000,000 * 62,035 *
Castle Convertible Fund, Inc. ........................ 500,000 * 31,017 *
Clinton Multistrategy Master Fund, Ltd. .............. 1,000,000 * 62,035 *
Clinton Riverside Convertible Portfolio Limited ...... 1,000,000 * 62,035 *
Credit Suisse First Boston Corporation ............... 6,774,000 * 420,223 *
Credit Suisse First Boston Europe Ltd. ............... 44,100,000 3.20% 2,735,732 *
Elliott International, L.P. .......................... 4,400,000 * 272,953 *
JP Morgan Securities ................................. 1,250,000 * 77,543 *
Mainstay Convertible Fund ............................ 2,080,000 * 129,032 *
Mainstay VP Convertible Portfolio .................... 730,000 * 45,285 *
New York Life Insurance Company ...................... 3,360,000 * 208,437 *
New York Life Separate Account #7 .................... 285,000 * 17,680 *
RCG Halifax Master Fund, LTD ......................... 750,000 * 46,526 *
RCG Latitude Master Fund, LTD ........................ 1,250,000 * 77,543 *
RCG Multi Strategy, LP ............................... 2,000,000 * 124,069 *
Royal Bank of Canada ................................. 13,000,000 * 806,452 *
The Class I C Company ................................ 375,000 * 23,263 *
The Liverpool Limited Partnership .................... 3,600,000 * 223,325 *
UBS Warburg LLC ...................................... 9,000,000 * 558,313 *
Wells Fargo & Company ................................ 4,000,000 * 248,139 *
To our knowledge, none of the selling security holders listed in the table
as amended above has, or within the past three years has had, any material
relationship with us or our affiliates, except as previously disclosed and
except that the Royal Bank of Canada beneficially owns 507,561 shares of our
common stock in addition to the shares of common stock that it will own upon
conversion of the notes.
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The date of this prospectus supplement is July 8, 2002