LKQ Corp Secures $1.5B Credit Facility
Ticker: LKQ · Form: 8-K · Filed: Mar 14, 2024 · CIK: 1065696
Sentiment: neutral
Topics: debt, financing
TL;DR
LKQ just inked a new $1.5B credit line, replacing their old one. More cash on hand.
AI Summary
On March 13, 2024, LKQ Corporation entered into a new credit agreement, establishing a $1.5 billion revolving credit facility. This facility matures on March 13, 2029, and replaces their previous $1.25 billion revolving credit facility. The company intends to use borrowings under the new facility for general corporate purposes.
Why It Matters
This new, larger credit facility provides LKQ Corporation with increased financial flexibility and liquidity for its ongoing business operations and potential future investments.
Risk Assessment
Risk Level: low — The filing concerns a routine credit facility amendment, which is a common financial maneuver for established companies and does not indicate unusual risk.
Key Numbers
- $1.5B — New Credit Facility (Increased borrowing capacity for LKQ Corporation.)
- $1.25B — Previous Credit Facility (Amount replaced by the new, larger facility.)
- 5 years — Maturity Term (Duration of the new revolving credit facility.)
Key Players & Entities
- LKQ Corporation (company) — Registrant
- $1.5 billion (dollar_amount) — New revolving credit facility amount
- $1.25 billion (dollar_amount) — Previous revolving credit facility amount
- March 13, 2024 (date) — Date of credit agreement
- March 13, 2029 (date) — Maturity date of new credit facility
FAQ
What is the primary purpose of the new credit facility?
The company intends to use borrowings under the new revolving credit facility for general corporate purposes.
What is the amount of the new revolving credit facility?
The new revolving credit facility has a principal amount of $1.5 billion.
When does the new credit facility mature?
The new revolving credit facility matures on March 13, 2029.
What did the new credit facility replace?
The new credit facility replaced the company's previous revolving credit facility in the principal amount of $1.25 billion.
What is the jurisdiction of LKQ Corporation's incorporation?
LKQ Corporation is incorporated in Delaware.
Filing Stats: 1,463 words · 6 min read · ~5 pages · Grade level 11 · Accepted 2024-03-13 19:16:09
Filing Documents
- lkq-20240313.htm (8-K) — 40KB
- exhibit41_20240313.htm (EX-4.1) — 732KB
- exhibit42_20240313.htm (EX-4.2) — 217KB
- exhibit51_20240313.htm (EX-5.1) — 42KB
- image_08.jpg (GRAPHIC) — 34KB
- 0001065696-24-000043.txt ( ) — 1364KB
- lkq-20240313.xsd (EX-101.SCH) — 2KB
- lkq-20240313_lab.xml (EX-101.LAB) — 22KB
- lkq-20240313_pre.xml (EX-101.PRE) — 13KB
- lkq-20240313_htm.xml (XML) — 3KB
01 Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement On March 13, 2024, LKQ Dutch Bond B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid) incorporated under the laws of The Netherlands ("LKQ Finance"), an indirect wholly-owned subsidiary of LKQ Corporation (the "Company," "we," "us," or "our"), completed an offering (the "Offering") of 750,000,000 aggregate principal amount of LKQ Finance's 4.125% Notes due 2031 (the "Notes"). LKQ Finance will use the net proceeds from the Offering and cash on hand to (i) pay outstanding indebtedness, including all of the outstanding 500,000,000 aggregate principal amount of the 3.875% senior notes due 2024 issued by the Company's indirect wholly-owned subsidiary, LKQ Italia Bondco di LKQ Italia Bondco GP S.r.l e C.S.A.P.A. (f/k/a LKQ Italia Bondco S.p.A.), and (ii) pay accrued interest and related fees, premiums and expenses. The Notes are governed by the Indenture, dated as of March 13, 2024 (the "Base Indenture"), among LKQ Finance, the Company, certain of the Company's subsidiaries identified therein as guarantors (together with the Company, the "Guarantors"), U.S. Bank Trust Company, National Association, as trustee, registrar, and transfer agent (the "Trustee"), and Elavon Financial Services DAC, as paying agent (the "Paying Agent"), as supplemented by the First Supplemental Indenture, dated as of March 13, 2024 (the "Supplemental Indenture" and, together with the Base Indenture, the "Indenture"), among LKQ Finance, the Guarantors, the Trustee, and the Paying Agent. The Notes bear interest at the rate of 4.125% per year from the date of original issuance or from the most recent payment date on which interest has been paid or provided for. Interest on the Notes is payable annually in arrears on March 13 of each year, beginning on March 13, 2025. The Notes will be initially fully and unconditionally guaranteed on a senior unsecured basis (the "Guarantees") by the Company a
01 Financial Statements and Exhibits
Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit Number Description of Exhibit 4.1 Indenture, dated as of March 13, 2024, among LKQ Dutch Bond B.V., as Issuer, LKQ Corporation, as a guarantor, the other guarantors identified therein, U.S. Bank Trust Company, National Association, as trustee, registrar and transfer agent, and Elavon Financial Services DAC, as paying agent. 4.2 Supplemental Indenture, dated as of March 13, 2024, among LKQ Dutch Bond B.V., as Issuer, LKQ Corporation, as a guarantor, the other guarantors identified therein, U.S. Bank Trust Company, National Association, as trustee, registrar and transfer agent, and Elavon Financial Services DAC, as paying agent. 4.3 Form of 4.125% Note due 2031 (included in Exhibit 4.2). 5.1 Opinion of Sheppard, Mullin, Richter & Hampton LLP 5.2 Consent of Sheppard, Mullin, Richter & Hampton LLP (included in Exhibit 5.1) 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: March 13, 2024 LKQ CORPORATION By: /s/ Rick Galloway Rick Galloway Senior Vice President and Chief Financial Officer