LKQ Corp.'s Proposed Senior Unsecured Notes Due 2028 And 2033 Rated 'BBB-' - S&P Global Ratings’ Credit Research

LKQ Corp.'s Proposed Senior Unsecured Notes Due 2028 And 2033 Rated 'BBB-'

LKQ Corp.'s Proposed Senior Unsecured Notes Due 2028 And 2033 Rated 'BBB-' - S&P Global Ratings’ Credit Research
LKQ Corp.'s Proposed Senior Unsecured Notes Due 2028 And 2033 Rated 'BBB-'
Published May 15, 2023
3 pages (1360 words) — Published May 15, 2023
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Abstract:

NEW YORK (S&P Global Ratings) May 15, 2023--S&P Global Ratings today assigned its 'BBB-' issue-level rating to LKQ Corp.'s proposed senior unsecured notes, which it will issue in two tranches due 2028 and 2033. The company will use the proceeds from the proposed debt, along with a Canadian term loan (unrated), some revolver borrowings, and cash, to fund its $2.1 billion acquisition of Uni-Select (a paint and hard parts distributor). While the acquisition will be somewhat dilutive to LKQ's overall margins, it will also increase its market share in the North American paint and hard products lines. We estimate the company's S&P Global Ratings-adjusted pro forma leverage will initially increase to about 2.7x following the transaction, from about 1.9x as

  
Brief Excerpt:

...- General Criteria: Environmental, Social, And Governance Principles In Credit Ratings, Oct. 10, 2021 - General Criteria: Group Rating Methodology, July 1, 2019 - Criteria | Corporates | General: Corporate Methodology: Ratios And Adjustments, April 1, 2019 - Criteria | Corporates | General: Reflecting Subordination Risk In Corporate Issue Ratings, March 28, 2018 - Criteria | Corporates | General: Methodology And Assumptions: Liquidity Descriptors For Global Corporate Issuers, Dec. 16, 2014 - Criteria | Corporates | General: Corporate Methodology, Nov. 19, 2013 - General Criteria: Methodology: Industry Risk, Nov. 19, 2013...

  
Report Type:

Ratings Action

Ticker
LKQX
Issuer
LKQ Corp.
GICS
Distributors (25501010)
Sector
Global Issuers
Country
United States
Region
United States
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "LKQ Corp.'s Proposed Senior Unsecured Notes Due 2028 And 2033 Rated 'BBB-'" May 15, 2023. Alacra Store. May 06, 2025. <http://www.alacrastore.com/s-and-p-credit-research/LKQ-Corp-s-Proposed-Senior-Unsecured-Notes-Due-2028-And-2033-Rated-BBB-2986099>
  
APA:
S&P Global Ratings’ Credit Research. (). LKQ Corp.'s Proposed Senior Unsecured Notes Due 2028 And 2033 Rated 'BBB-' May 15, 2023. New York, NY: Alacra Store. Retrieved May 06, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/LKQ-Corp-s-Proposed-Senior-Unsecured-Notes-Due-2028-And-2033-Rated-BBB-2986099>
  
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