“The new revolving credit facility and term loan give LKQ additional flexibility to execute our growth plans at attractive rates,” said Joseph Holsten, vice chairman and co-chief executive officer of LKQ Corporation.
The key features of the secured credit facility include:
- $750 million revolving credit facility with a $300
million multicurrency sublimit
- $250 million term loan facility
- Initial pricing on the United States dollar portions
of the facility at Libor plus 175 basis points (a 50 basis
point reduction relative to the Company’s prior facility)
with an undrawn fee of 35 basis points
- Annual amortization payments on the term loan of 5%
in years 1 and 2, 10% in years 3 and 4, and 15% in year 5
with a balloon payment at maturity
- $400 million accordion feature
- 5 year term expiring March 25, 2016
The company indicated the initial use of proceeds will be repayment of the prior credit facility and for general corporate purposes.
The company confirmed that previously issued guidance released on Feb. 24, 2011 did not include the impact of the refinancing. The company anticipates a first quarter 2011 write-off of debt issuance costs of approximately $6 million related to the retired credit facility.
JP Morgan Chase Bank, N.A. acted as administrative agent, Bank of America, N.A as syndication agent, and RBS Citizens, N.A. and Wells Fargo Bank, N.A. as co-documentation agents.
J.P. Morgan Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Inc., RBS Citizens, N.A. and Wells Fargo Securities, LLC acted as joint bookrunners and joint lead arrangers.
