By Wendy Van Sickle
Columbus, Ohio, May 15 – LKQ Corp. priced $1.4 billion of senior notes (Baa3/BBB-/BBB-) on Monday, according to a news release.
The offering includes $800 million aggregate principal amount of 5.75% senior notes due 2028 and $600 million of 6.25% senior notes due 2033.
The offering will close on May 24.
The notes of both series will be fully and unconditionally guaranteed on a senior unsecured basis by certain of the company’s subsidiaries.
LKQ intends to use the net proceeds from the offering, together with borrowings under its C$700 million term loan credit facility, to finance a portion of the consideration payable by the company in connection with its previously announced acquisition of Uni-Select Inc., including repaying existing Uni-Select debt, to pay associated fees and expenses and for general corporate purposes.
If the acquisition is not consummated or terminated by Nov. 27, 2023, LKQ will be required to redeem the 2033 notes at 101 plus interest. Closing of the Rule 144A and Regulation S notes is not conditioned on closing of the acquisition.
Based in Chicago, LKQ is a supplier of alternative and specialty parts to repair and accessorize automobiles and other vehicles.
| Issuer: | LKQ Corp.
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| Amount: | $1.4 billion
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| Securities: | Senior notes
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| Trade date: | May 15
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| Settlement date: | May 24
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| Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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| Distribution: | Rule 144A and Regulation S
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| Five-year notes
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| Amount: | $800 million
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| Term: | Five years
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| Coupon: | 5.75%
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| 10-year notes
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| Amount: | $600 million
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| Term: | 10 years
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| Coupon: | 6.25%
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| Redemption: | Required at 101 if Uni-Select acquisition is not consummated or terminated by Nov. 27
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