---
schema_version: "secwatch.filing_event.v1"
accession: "0001065696-23-000002"
form_type: "8-K"
ticker: "LKQ"
cik: "0001065696"
company_name: "LKQ CORP"
filed_at: "2023-01-06T23:59:59+00:00"
generated_at: "2026-06-20T18:33:50.230458+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.6
calibrated_materiality_score: 0.6
confidence: "high"
source: SEC EDGAR
---

# LKQ enters new $2B credit facility, expects $45M-$55M additional 2023 interest expense

## Summary
- New $2B unsecured revolver (maturing Jan 2028) and $500M term loan (maturing Jan 2026) replace prior credit facility.
- Credit facility removes covenants on dividends and investments, provides increased flexibility.
- Expects $45-55M additional interest expense in 2023 vs 2022 due to rising benchmark rates.
- Spreads on SOFR loans range from 1.125% to 1.75%; initial spread 1.25%.
- Commitment fee 0.125% initially; ranges from 0.10% to 0.275% based on leverage/rating.

## SEC filing metadata
- accession: 0001065696-23-000002
- form_type: 8-K
- ticker: LKQ
- cik: 0001065696
- company_name: LKQ CORP
- filed_at: 2023-01-06T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.6
- calibrated_materiality_score: 0.6
- confidence: high
- sec_items: 1.01, 1.02, 2.03, 7.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1065696/000106569623000002/0001065696-23-000002-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1065696/000106569623000002/lkq-20230105.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001065696-23-000002
- JSON: https://secwatch.observer/filing/0001065696-23-000002.json
- Plain text: https://secwatch.observer/filing/0001065696-23-000002.txt

## Key facts
- Debt Financings
  LKQ CORP incurred credit facility of up to $2 billion revolving credit facility and $500 million term loan with Wells Fargo Bank, National Association, as administrative agent, and other lenders at variable rate based on SOFR or Alternate Base Rate plus spreads ranging from 1.1 maturing Revolving loans mature January 5, 2028; term loan matures January 5, 2026.
  - Instrument: credit facility
  - Principal: up to $2 billion revolving credit facility and $500 million term loan
  - Counterparty: Wells Fargo Bank, National Association, as administrative agent, and other lenders
  - Rate: variable rate based on SOFR or Alternate Base Rate plus spreads ranging from 1.1
  - Maturity: Revolving loans mature January 5, 2028; term loan matures January 5, 2026
  - Event: incurrence
  source text: The New Credit Agreement includes an unsecured revolving credit facility of up to a U.S. Dollar equivalent of $2 billion, which includes a $150 million sublimit for the issuance of letters of credit and a $150 million sublimit for swing line loans (the "Revolving Loans") and an unsecured term loan facility of up to $500 million (the "Term Loan" and collectively with the Revolving Loans, the "Loans").
  evidence_url: https://www.sec.gov/Archives/edgar/data/1065696/000106569623000002/0001065696-23-000002-index.htm
- Material Agreements
  LKQ CORP entered into Credit Agreement with Wells Fargo Bank, National Association, Bank of America, N.A., PNC Bank, National Association, Truist Bank, MUFG Bank, Ltd., and other lenders valued at $2 billion (effective 2023-01-05).
  - Action: entry
  - Agreement: credit facility
  - Counterparty: Wells Fargo Bank, National Association, Bank of America, N.A., PNC Bank, National Association, Truist Bank, MUFG Bank, Ltd., and other lenders
  - Value: $2 billion
  - Effective: 2023-01-05
  source text: On January 5, 2023, LKQ Corporation ("LKQ" or the "Company") and certain other subsidiaries of LKQ (collectively, the "Borrowers") entered into a new Credit Agreement (the "New Credit Agreement") with several lenders from time to time party thereto as Lenders (the "Lenders"); Wells Fargo Bank, National Association ("Wells Fargo Bank"), as administrative agent; Bank of America, N.A. ("Bank of America"), as syndication agent; PNC Bank, National Association, Truist Bank and MUFG Bank, Ltd. ("MUFG"), as Documentation Agents; Wells Fargo Bank and Bank of America, as Sustainability Structuring Agents; Wells Fargo Securities, LLC, BofA Securities, Inc., PNC Capital Markets LLC, Truist Securities, Inc. and MUFG, as joint bookrunners and joint lead arrangers.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1065696/000106569623000002/0001065696-23-000002-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.