LKQ Corporation Announces Pricing of $1.4 Billion Senior Unsecured Notes

About this update from Lkq Corporation

[{"type":"text","content":"CHICAGO, May 15, 2023 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq: LKQ) announced today that it has priced its offering of $1.4 billion aggregate principal amount of senior unsecured notes, consisting of $800 million aggregate principal amount of 5.75% senior notes due 2028 (the “2028 notes”) and $600 million aggregate principal amount of 6.25% senior notes due 2033 (the “2033 notes” and together with the 2028 notes, the “notes”). The offering is expected to close on or about May 24, 2023, subject to the satisfaction of customary closing conditions. The notes of both series will be fully and unconditionally guaranteed on a senior unsecured basis by certain of the Company’s subsidiaries. The Company intends to use the net proceeds from the offering, together with borrowings under its CAD 700 million term loan credit agreement, to finance a portion of the consideration payable by the Company in connection with its previously announced acquisition of Uni-Select Inc. (“Uni-Select”), including repaying existing Uni-Select indebtedness, to pay associated fees and expenses, and for general corporate purposes. If the Uni-Select acquisition is not consummated or terminated, in each case, on or prior to November 27, 2023 (subject to extension in certain circumstances), the Company will be required to redeem the 2033 notes at a redemption price equal to 101% of the principal amount of such notes, plus accrued and unpaid interest. The closing of the offering is not contingent on the closing of the acquisition. The notes and the guarantees have not been registered under the United States Securities Act of 1933, as amended (the “Securities Act”) or the securities laws of any other jurisdiction. As a result, they may not be offered or sold in the United States or to any U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The notes will be offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Company has agreed to file with the Securities and Exchange Commission an exchange registration statement with respect to an exchange offer for the notes or a shelf registration statement for the resale of the notes....

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