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Letter to the Editor
Wednesday September 19
LKQ Corporation Receives HSR Clearance for Keystone Acquisition and Announces Proposed Common Stock Offering
LKQ Corporation has received clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 ("HSR"), in connection with its pending acquisition of Keystone Automotive Industries, Inc. The waiting period under HSR expired at 11:59 p.m. (Eastern Time) on September 4, 2007. Expiration of the HSR waiting period was a condition to completion of the acquisition. The consummation of the acquisition remains subject to other customary conditions, including approval by Keystone's shareholders. LKQ Corporation continues to expect that the Keystone acquisition will close early in the fourth calendar quarter of 2007, as previously announced.LKQ Corporation has also made a public offering of 10,000,000 shares of its common stock. The common stock to be offered will consist of 8,500,000 shares to be issued and sold by LKQ and 1,500,000 shares to be sold by certain selling stockholders of LKQ. LKQ will not receive any of the proceeds from the sale of shares by the selling stockholders. LKQ expects to grant the underwriters an option to purchase up to 1,500,000 additional shares of common stock solely to cover over-allotments, if any.
LKQ's proceeds from the offering will be used to repay existing indebtedness and to fund a portion of the purchase price for the Keystone acquisition. LKQ previously received a $1.09 billion senior secured financing commitment from Deutsche Bank and Lehman Brothers Inc., subject to customary conditions, to fund the Keystone acquisition and to refinance existing debt. Assuming completion of the equity offering, LKQ expects to reduce its financing from Deutsche Bank and Lehman Brothers Inc. to approximately $850 million.
The offering is being made through an underwriting group led by Robert W. Baird & Co., Deutsche Bank Securities Inc., BB&T Capital Markets, and Raymond James.
The common stock will be offered pursuant to an effective registration statement filed with the Securities and Exchange Commission.
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