CHICAGO -- LKQ Corp. has entered into a definitive credit agreement with several lenders to borrow up to $1 billion. The new facility replaces the company's $750 million facility that would have expired in October 2013.

"The new revolving credit facility and term loan give LKQ additional flexibility to execute our growth plans at attractive rates," said Joseph Holsten, LKQ's vice chairman and co-CEO.

The secured credit facility includes a $750 million revolving credit facility with a $300 million multicurrency sublimit and a $250 million term loan facility, under a 5-year term expiring March 25, 2016.

John Quinn, executive vice president and CFO, commented: "In addition to the increased borrowing capacity, we expect the new facility to bring a number of benefits including lower borrowing costs, reduced amortization payouts, more efficient cash management and extending our only major debt maturity to 2016."

LKQ said proceeds will initially be used for repayment of the prior credit facility and for general corporate purposes. The company said it anticipates a first quarter 2011 write-off of debt issuance costs of approximately $6 million related to the retired credit facility.