LKQ Corp. announced today it has priced its offering of $1.4 billion aggregate principal amount of senior unsecured notes, consisting of $800 million aggregate principal amount of 5.75% senior notes due 2028 and $600 million aggregate principal amount of 6.25% senior notes due 2033. The offering is expected to close on or about May 24, 2023, subject to the satisfaction of customary closing conditions.

The notes of both series will be fully and unconditionally guaranteed on a senior unsecured basis by certain of the company’s subsidiaries. LKQ said it intends to use the net proceeds from the offering, together with borrowings under its CAD 700 million term loan credit agreement, to finance a portion of the consideration payable by the company in connection with its previously announced acquisition of Uni-Select Inc., including repaying existing Uni-Select indebtedness, to pay associated fees and expenses, and for general corporate purposes. If the Uni-Select acquisition is not consummated or terminated, in each case, on or prior to November 27, 2023, the company will be required to redeem the 2033 notes at a redemption price equal to 101% of the principal amount of such notes, plus accrued and unpaid interest. 

The closing of the offering is not contingent on the closing of the acquisition.