June 2, 2022—Service King Collision has entered into an agreement with financial stakeholders to provide Service King with new capital and to help reduce debt and extend remaining existing debt maturities.
According to a press release, the agreement is meant to position Service King for long term growth. Service King will receive $200 million in new capital under this agreement. Additionally, net indebtedness by over $500 million. Remaining existing funded debt maturities will be extended until June 2027.
"This agreement is an important step forward in strengthening our financial position by adding new capital and reducing our debt, positioning Service King to continue to grow and succeed over the long term," said David Cush, Chief Executive Officer of Service King in the press release. "We are confident this recapitalization will allow us to further invest in the Company and our people, and enable Service King to continue delivering safe, superior auto body repair services to our customers across the markets we serve."
Under this agreement, Clearlake Capital Group, L.P. affiliates will assume majority ownership of Service King.
"We see significant opportunities ahead for Service King as the Company continues to deliver on its mission of being the national collision repair operator of choice across several of the country's fastest growing MSAs. We are excited to partner with Service King and its talented teammates and reinvest in the business to drive growth for the long term," said José E. Feliciano, Co-Founder and Managing Partner of Clearlake in the press release.
Service King plans to continue operations as normal.
