LKQ expands availability to $3.2 billion, extends agreement to 2021

By Wendy Van Sickle

Columbus, Ohio, Feb. 2 – LKQ Corp. entered into an amended and restated credit agreement on Friday providing for an expanded $3.2 billion of total availability, according to an 8-K filed with the Securities and Exchange Commission.

Previously, the agreement provided for a total of $2.3 billion of availability. The restated agreement includes a $2.45 billion multicurrency revolving credit facility and $750 million of term loans, including about $500 million in U.S. dollars and a €230 million term loan.

The agreement’s maturity was extended by about two years to Jan. 29, 2021.

Term loan borrowings are payable in quarterly installments. The term loans were fully drawn at closing with the additional $340 million of new term loans used to repay outstanding revolver borrowings and borrowings under the company’s receivables securitization facility as well as for fees related to the restatement.

Wells Fargo Securities, LLC, Bank of America Merrill Lynch, MUFG and Citizens Bank, NA acted as joint bookrunners and joint lead arrangers; Wells Fargo Bank, NA as administrative agent; Bank of America, NA as syndication agent; and MUFG and Citizens Bank as documentation agents.

The amended and restated agreement increases LKQ’s ability to incur additional debt.

Interest remains Libor plus 100 basis points to 200 bps, and the commitment fee remains 17.5 bps to 35 bps, depending on the company’s net leverage ratio.

Based in Chicago, LKQ provides alternative and specialty parts to repair and accessorize automobiles and other vehicles.

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