Service King, an operator of collision repair facilities, has reached an agreement with financial stakeholders to provide Service King with new capital, reduce debt and position Service King to increase reinvestment for long term growth. As part of the transaction, Service King will receive $200 million in new capital with affiliates of Clearlake Capital Group LP assuming majority ownership of the firm.
The capital injection strengthens Service King’s financial position by reducing net indebtedness by $500 Million.
“This agreement is an important step forward in strengthening our financial position by adding new capital and reducing our debt,” said David Cush, CEO of Service King. “We are confident this recapitalization will allow us to further invest in Service King and our people and enable the company to continue delivering safe, superior auto body repair services to our customers across the markets we serve.”
Kirkland & Ellis LLP is serving as legal counsel to Service King, with PJT Partners serving as financial advisor and AlixPartners acting as restructuring advisor.
Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel to an ad hoc group of Service King’s noteholders, with Houlihan Lokey serving as financial advisor. Gibson, Dunn & Crutcher LLP is acting as legal counsel to an ad hoc group of Service King’s term lenders, with Evercore serving as financial advisor. Davis Polk & Wardwell LLP is acting as legal counsel to an ad hoc group of Service King’s revolving lenders, with FTI Consulting serving as financial advisor. Weil, Gotshal & Manges LLP is serving as legal counsel to Service King’s sponsors.