LKQ Corporation Achieves Moody’s Investment Grade Issuer Rating of Baa3 with stable outlook
June 03 2022 - 10:00AM
LKQ Corporation (Nasdaq: LKQ), a leading provider of alternative
and specialty parts to repair and accessorize automobiles and other
vehicles, announced that Moody's Investors Service (“Moody's”)
assigned a Baa3 Issuer Rating to LKQ Corporation (LKQ), upgraded
the rating on LKQ European Holdings B.V.'s senior unsecured notes
to Baa3, and upgraded the rating on LKQ Italia Bondco S.p.A.'s
senior unsecured notes to Baa3. The outlooks are stable.
As a consequence of the ratings upgrade from
Moody’s and the upgraded rating provided by S&P in April 2022,
the current credit rating of LKQ European Holdings B.V.'s and LKQ
Italia Bondco S.p.A.'s senior unsecured notes (collectively, “the
Notes”) is an investment grade rating as defined in the indentures
governing the Notes. Pursuant to the terms of the indenture
governing the Notes, a Covenant Suspension Event has occurred.
During a Covenant Suspension Event, LKQ and its subsidiaries will
no longer be required to comply with certain restrictive covenants
under the indentures including the limitation on asset disposition,
the limitation on restricted payments, certain limitations on sale
and leaseback transactions, and the requirement to include
additional Note guarantees for newly formed or acquired
subsidiaries.
“This upgrade from Moody’s to investment grade
is a true validation of the implementation of our operational
excellence program, the resiliency of our business model, and the
disciplined execution of our strategy,” said Varun Laroyia,
Executive Vice President and Chief Financial Officer.
About LKQ Corporation
LKQ Corporation (www.lkqcorp.com) is a leading
provider of alternative and specialty parts to repair and
accessorize automobiles and other vehicles. LKQ has operations in
North America, Europe and Taiwan. LKQ offers its customers a broad
range of OE recycled and aftermarket parts, replacement systems,
components, equipment, and services to repair and accessorize
automobiles, trucks, and recreational and performance vehicles.
Forward Looking Statements
Statements and information in this press release
that are not historical are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and
are made pursuant to the “safe harbor” provisions of such Act.
Forward-looking statements include, but are not
limited to, statements regarding our outlook, guidance,
expectations, beliefs, hopes, intentions and strategies. These
statements are subject to a number of risks, uncertainties,
assumptions and other factors including those identified below. All
forward-looking statements are based on information available to us
at the time the statements are made. We undertake no obligation to
update any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by
law.
You should not place undue reliance on our
forward-looking statements. Actual events or results may differ
materially from those expressed or implied in the forward-looking
statements. The risks, uncertainties, assumptions and other factors
that could cause actual events or results to differ from the events
or results predicted or implied by our forward-looking statements
include, among others, major events affecting the bond markets,
changes in interest rates, changes in our cash position or cash
requirements for other purposes, general market conditions, and
other factors discussed in our filings with the SEC, including
those disclosed under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in our Annual Report on Form 10-K for the year
ended December 31, 2021 and in our subsequent Quarterly
Reports on Form 10-Q. These reports are available on our investor
relations website at lkqcorp.com and on the SEC website at
sec.gov.
Contact:Joseph P. BoutrossVice President, Investor RelationsLKQ
Corporation(312) 621-2793jpboutross@lkqcorp.com
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