COPART INC 8-K

What Happened
Copart, Inc. announced on January 23, 2026 that it entered into a Senior Revolving Credit Agreement providing a $1,250.0 million revolving credit facility with Wells Fargo Bank, N.A. as administrative agent. The new facility replaces and refinances Copart’s prior credit agreement dated December 21, 2021, which was terminated and repaid concurrently.

Key Details

• Total facility: $1,250.0 million revolving credit facility maturing January 23, 2031; Copart may request up to two one-year extensions.
• Currency / increments: Up to $550.0 million equivalent may be borrowed in Pounds Sterling, Euro and Canadian Dollars; discretionary incremental facility up to $500.0 million.
• Subsidiary sub-facilities: CPRT GmbH $150.0M equiv., Copart Autos España, S.L.U. $150.0M equiv., Copart UK Limited $250.0M equiv. (all co-borrowers).
• Other limits: $100.0M swingline sublimit and $100.0M letter of credit sublimit.
• Security & guarantees: Facility is unsecured; guaranteed by each borrower thereunder and certain domestic subsidiaries meeting materiality thresholds.
• Pricing: Borrowings bear interest at borrower’s option of (a) applicable reference rate (SOFR/SONIA/EURIBOR/CORRA plus spread adjustments) plus 0.75% to 1.125%, or (b) a daily rate plus 0.0% to 0.125%, depending on Copart’s consolidated total net leverage ratio. Unused commitments carry a commitment fee of 0.05% to 0.125%.
• Use of proceeds: General corporate purposes including working capital, capital expenditures, dividends, potential share repurchases, acquisitions, and international expansion.

Why It Matters
This new $1.25B revolving facility provides Copart with multi-year liquidity and financial flexibility through January 2031 to support operations, capital spending, shareholder distributions, and potential strategic transactions. The unsecured nature and inclusion of foreign sub-facilities support Copart’s international operations. Investors should note the filing’s forward-looking disclosures that highlight risks related to servicing indebtedness, covenant compliance, timing/size of future acquisitions or repurchases, and other business risks disclosed in Copart’s SEC filings.