Service sector

Service King reaches agreement with key financial players to recapitalize its business

The capital injection strengthens Service King’s financial position by reducing net indebtedness by more than $500 million

DALLAS, May 31, 2022 /PRNewswire/ — Service King (or the “Company”), a nationwide operator of auto body repair facilities, today announced that it has entered into a global agreement with key financial players that will provide the Company with new capital, reduce its debt, extend the remaining maturities of existing debt and position Service King to increase reinvestment for long-term growth. The agreement is supported by substantially all of the Company’s bondholders, holding 100% of its outstanding senior revolving debt and at least 74% of its outstanding senior term loan, and its sponsors. With the support of its financial stakeholders, Service King expects to complete these recapitalization transactions on an accelerated basis.

“This agreement is an important step 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, Managing Director of Service King. “We are confident that this recapitalization will allow us to invest more in the business and in our people, and will enable Service King to continue to provide safe and superior collision repair services to our customers in the markets we serve. “

He continued: “We thank our partners and insurance providers for their continued support, as well as our ticket holders and lenders for their collaboration throughout this process and their confidence in our business. I would also like to thank all Service King teammates for their resilience, dedication, and continued commitment to putting customers at the center of the repair experience.”

Under the terms of the transaction support agreement, Service King will receive $200 million new capital, reduce net debt by more than $500 million and extend the remaining maturities of funded debt up to June 2027. Under the agreement, affiliates of Clearlake Capital Group, LP (“Clearlake“) will become the majority owner of the Company.

“We see significant opportunities for Service King as the company continues to fulfill its mission to be the national collision repair operator of choice in many of the fastest growing MSAs in the country. partner with Service King and his talented teammates and to reinvest in the business to drive long-term growth,” said José E. Feliciano, co-founder and managing partner of Clearlake.

Service King will continue normal operations at all service centers nationwide without interruption following this transaction. The financial players have undertaken to support the operation in all scenarios, subject to various conditions provided for in the overall agreement.


Kirkland & Ellis LLP is acting as legal advisor to Service King, with PJT Partners as financial advisor and AlixPartners as restructuring advisor.

Paul, Weiss, Rifkind, Wharton & Garrison LLP is legal counsel to an ad hoc group of Service King noteholders, with Houlihan Lokey serving as a financial advisor.

Gibson, Dunn & Crutcher LLP is acting as legal advisor to an ad hoc group of Service King term lenders, with Evercore acting as financial advisor.

Davis Polk & Wardwell LLP is acting as legal counsel to an ad hoc group of Service King Revolving Lenders, FTI Consulting, Inc. acting as financial advisor.

Weil, Gotshal & Manges LLP is legal counsel to the sponsors of Service King.

About Service King Collision®

Service King Collision®, now celebrating over 45 years of experience in the automotive repair industry, is a nationwide operator of high quality, complete collision repair facilities. The organization is consistently recognized for its commitment to customer satisfaction, the quality of its work, and its contribution to the industry through innovative training and recruitment initiatives. Service King has its roots in Dallas, TX and founder Eddie Lennoxwhich opened the first Service King in 1976. Today, Service King operates 335 locations in 24 states and the District of Colombia.

For more information and to find a local Service King, visit and follow Service King on Facebook, instagram and Twitter.

About Clearlake Capital Group

Clearlake Capital Group, LP is an investment firm founded in 2006 that operates integrated businesses in private equity, credit and other related strategies. With a sector-based approach, the company seeks to partner with management teams by providing patient, long-term capital to companies that can benefit from Clearlake’s operational improvement process, OPS® The main target sectors of the company are industry, technology and consumption. Clearlake currently has more $72 billion of assets under management, and its senior investment managers have led or co-led more than 400 investments. The company is headquartered in Santa Monica, California with subsidiaries in Dallas, TX, London, UK and Dublin, Ireland. More information is available at and on Twitter @Clearlake.

Forward-looking statements

This press release contains forward-looking statements within the meaning of securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variations of words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “seeks”, “estimates”, “projects”. , “plans”, “target”, “would”, “will”, “should”, “aim”, “could” or “may” or other similar expressions. Forward-looking statements provide management’s current expectations or forecasts regarding future conditions, events or results. All statements that address operating performance, events or developments that Service King believes will occur in the future are forward-looking statements, including the Company’s ability to complete the transactions contemplated by the Support Agreement. to the transaction and the company’s expectations regarding future liquidity, cash flow, debt obligations and other expenses. They may also include estimates of sales targets, cost savings, capital expenditures, other expense items, actions related to strategic initiatives, demand for company products, cash flow, capital structure, market share, industry volume, other financial items, descriptions of management’s plans or objectives for future operations, and descriptions of assumptions underlying anything that precedes. All forward-looking statements speak only as of the date they are made and reflect Service King’s good faith beliefs, assumptions and expectations, but are not guarantees of future performance or events. Further, Service King disclaims any obligation to publicly update or revise any forward-looking statement, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements.


For Service King:
[email protected]

Michel Freitag and Meaghan Repko
Joelle FrankWilkinson Brimmer Katcher

For Clearlake:
Jennifer Hurson
Lambert & Co.
[email protected]

SOURCE King Collision Service