UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 15, 2008
LKQ CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware |
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000-50404 |
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36-4215970 |
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(State or other jurisdiction |
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(Commission |
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(IRS Employer |
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of incorporation or organization) |
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File Number) |
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Identification No.) |
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120
North LaSalle Street, Suite 3300 |
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60602 |
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(Address of principal executive offices) |
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(Zip Code) |
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(312) 621-1950
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 1.01. ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
On September 16, 2008, LKQ Corporation (“LKQ”) entered into an interest rate swap agreement (the “Swap Transaction”) with Deutsche Bank, pursuant to a confirmation that incorporates the 2002 ISDA Master Agreement. The Swap Transaction contains customary representations and warranties and covenants and may be terminated prior to its expiration, including as a result of the prepayment of LKQ’s current credit facilities. Any such early termination may require LKQ to make additional payments to the counterparty.
LKQ entered into the Swap Transaction in order to hedge the floating rate interest risk on LKQ’s current credit facilities. The Swap Transaction has an effective date of September 15, 2008. Under the terms of the Swap Transaction, LKQ is required to make monthly payments based on a fixed rate of interest on a notional amount to the counterparty while the counterparty is obligated to make monthly floating rate payments on the same notional amount to LKQ based on the one month London Interbank Offered Rate rounded up to the nearest 1/100 th of 1%. All interest rates are calculated based on a 360-day year for actual days elapsed. The Swap Transaction has a notional amount of $250,000,000, a fixed interest rate of 2.63%, and a termination date of October 14, 2010. Our actual cost of borrowing will be the rates discussed above plus an applicable margin, which is currently 2.25%.
Item 2.03. CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT
The information set forth in Item 1.01 of this Form 8-K is incorporated herein by reference.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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LKQ Corporation |
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Date: |
September 19, 2008 |
By: |
/s/ VICTOR M. CASINI |
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Victor M. Casini |
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Senior Vice President and General Counsel |
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