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Tuesday, 31 May 2022 14:20

Service King Reaches Agreement to Recapitalize Business

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Service King on May 31 announced its entry into a comprehensive agreement with key financial stakeholders that will position it to increase reinvestment for long term growth.

Under the terms of the transaction support agreement, Service King will receive $200 million in new capital, reduce net indebtedness by more than $500 million and extend remaining existing funded debt maturities until June 2027.

 

Under the agreement, affiliates of Clearlake Capital Group, L.P. will assume majority ownership of the company.

 

Service King will continue normal operations at all service centers nationwide with no interruptions as a result of this transaction.

 

The agreement is supported by substantially all of Service King’s bondholders, holders of 100% of its outstanding first-lien revolving debt and at least 74% of its outstanding first-lien term loan debt, and its equity sponsors.

 

With the support of its financial stakeholders, Service King expects to complete these recapitalization transactions on an expedited basis.

 

"This agreement is an important step forward in strengthening our financial position by adding new capital and reducing our debt, positioning Service King to continue to grow and succeed over the long term," said David Cush, CEO of Service King. "We are confident this recapitalization will allow us to further invest in the company and our people, and enable Service King to continue delivering safe, superior auto body repair services to our customers across the markets we serve."

 

He continued, "We thank our insurance carrier partners and vendors for their continued support, and our noteholders and lenders for their collaboration throughout this process and confidence in our business. I would also like to thank all the Service King teammates for their resiliency, dedication and ongoing commitment to...


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