Service King in the USA has announced its entry into a comprehensive agreement with key financial stakeholders that will provide the company with new capital, reduce debt, extend remaining existing debt maturities, and position Service King to increase reinvestment for long term growth.
The new agreement is supported by substantially all of its 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 recapitalisation transactions on an expedited basis.
Under the terms of the agreement, Service King will receive $200 million in new capital, reduce net indebtedness by over $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.
“This agreement is an important step forward, positioning Service King to continue to grow and succeed over the long term. We are confident this recapitalisation 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.” said David Cush, Chief Executive Officer of Service King.
José E. Feliciano, Co-Founder and Managing Partner of Clearlake added: “We see significant opportunities ahead for Service King as the company continues to deliver on its mission of being the national collision repair operator of choice across several of the country’s fastest growing MSAs. We are excited to partner with Service King and its talented teammates and reinvest in the business to drive growth for the long term,”
Service King will continue normal operations at all service centres nationwide with no interruption as a result of this transaction. The financial stakeholders have committed to support the transaction in all scenarios, subject to various conditions set forth in the comprehensive agreement. Service King operates 335 locations across the USA.