The private equity owners of auto repair-center operator Service King Paint & Body LLC are considering a sale of the company, people with knowledge of the matter said.Carlyle invested in Service King in 2012 when the company had a mere 49 Texas locations. Blackstone bought into the company in 2014 but Bloomberg couldn't find the purchase price.
Service King’s owners, Blackstone Group LP and Carlyle Group LP, have had discussions with bankers about starting a sale process this year, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The company could fetch more than $2 billion, the people said.
Moody's reported when it first rated Service King:
The new ratings are in conjunction with Service King's agreement to sell a roughly 55% stake in itself to affiliates of Blackstone.WSJ reported:
Blackstone Group LP has agreed to buy a majority stake in auto-repair shop chain Service King Collision Repair Centers from Carlyle Group LP with a view to fund the company's future growth, according to people familiar with the matter. The deal values Service King at about $650 million, one of the people said.By the time Blackstone bought in Service King had 180 locations in 20 states. Carlyle and Blackstone loaded Service King with $695 million in debt according to Moody's:
The Ba3 ratings assigned to the proposed $100 million secured revolver, $355 million senior secured term loan, and $40 million senior secured delayed draw term loan reflect their senior position in the capital structure, as well as the cushion provided by the proposed $200 million senior unsecured notes, which are rated Caa1.That ballooned to $1.1 billion as of August 2016. At those debt levels Service King had 299 locations in 23 states. Time will tell if Bloomberg's article stirs up buyout interest in Service King.