LKQ Corporation Achieves Moody’s Investment Grade Issuer Status
CHICAGO, June 03, 2022 (GLOBE NEWSWIRE) — 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), raised the rating of the senior unsecured notes of LKQ European Holdings BV to Baa3 and raised the rating of the senior unsecured notes of LKQ Italia Bondco SpA to Baa3. The outlook is stable.
Following the ratings upgrade from Moody’s and the rating upgrade provided by S&P in April 2022, the current credit rating of the senior unsecured notes of LKQ European Holdings BV and LKQ Italia Bondco SpA ( 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. Upon an event of suspension of covenant, LKQ and its subsidiaries will no longer be required to comply with certain restrictive covenants under the trust indentures, including limitation on disposition of assets, limitation on restricted payments, certain limitations on sale and leaseback transactions, and the requirement to include additional note guarantees for newly created or acquired subsidiaries.
“This move from Moody’s to Investment Grade is a true validation of the execution of our operational excellence program, the resilience of our business model and the disciplined execution of our strategy,” said Varun Laroyia, vice-president Executive Chairman and Chief Financial Officer.
About LKQ Corporation
LKQ Corporation (www.lkqcorp.com) is a leading supplier 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 wide range of recycled original parts and replacement parts, replacement systems, components, equipment and services to repair and accessorize automobiles, trucks and recreational and performance vehicles. .
Statements and information contained 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 that Act.
Forward-looking statements include, but are not limited to, statements regarding our outlook, directions, 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 by 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 anticipated 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 our cash requirements for other purposes, general market conditions and other factors discussed in our filings with the SEC, including those disclosed under the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections 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’s website at sec.gov.
Joseph P. Boutross
Vice President, Investor Relations