KAR Auction Services Announces Pricing and Upsizing of Debt Financing
May 22 2017 - 6:23PM
KAR Auction Services, Inc. (NYSE:KAR) (the “Company”) announced
today that it has priced its previously announced offering of
5.125% senior notes due 2025 (the “notes”). The size of the
offering has been increased from $800 million to $950 million. The
Company intends to use the net proceeds from the notes offering to
repay a portion of the existing term loans outstanding under its
senior secured credit facilities and for general corporate
purposes.
The notes are expected to be issued at an issue price of 100%,
and are expected to be guaranteed on a senior unsecured basis by
the Company’s existing and future domestic subsidiaries that
guarantee its senior secured credit facilities.
The Company also announced today that it expects to complete the
repricing of the term loans that will remain outstanding and to
increase the revolving commitments under its senior secured credit
facilities from $300 million to $350 million.
The transactions are expected to close on May 31, 2017, subject
to customary closing conditions.
The notes have not been and will not be registered under the
U.S. Securities Act of 1933, as amended (the “Securities Act”), any
state securities laws or the securities laws of any other
jurisdiction, and may not be offered or sold in the United States
absent registration or an applicable exemption from registration.
Accordingly, the notes are being offered and sold only to persons
reasonably believed to be qualified institutional buyers in
accordance with Rule 144A under the Securities Act and outside the
United States in reliance on Regulation S under the Securities Act.
This press release does not constitute an offer to sell, or the
solicitation of an offer to buy, any security and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale would be unlawful.
About KAR Auction Services
KAR Auction Services (NYSE:KAR) provides sellers and buyers
across the global wholesale used-vehicle industry with innovative,
technology-driven remarketing solutions. KAR’s unique end-to-end
platform supports whole car, salvage, financing, logistics and
other ancillary and related services, including the sale of
approximately 5.1 million units valued at over $40 billion through
our auctions. Our integrated physical, online and mobile
marketplaces reduce risk, improve transparency and streamline
transactions for customers in 110 countries. Headquartered in
Carmel, Ind., KAR has approximately 17,400 employees across the
United States, Canada, Mexico and the United Kingdom.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
and which are subject to certain risks, trends and uncertainties.
In particular, statements made that are not historical facts may be
forward-looking statements. Words such as “should,” “may,” “will,”
“anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,”
“estimates,” “contemplates” and similar expressions identify
forward-looking statements. Such statements are not guarantees of
future performance and are subject to risks and uncertainties that
could cause actual results to differ materially from the results
projected, expressed or implied by these forward-looking
statements. Such forward-looking statements include statements
regarding the intention to complete the notes offering, to repay
and/or reprice a portion of existing term loans and to increase
existing revolving commitments and the expected closing date of the
transactions. Factors that could cause or contribute to such
differences include those matters disclosed in the Company’s
Securities and Exchange Commission filings, including under the
heading “Risk Factors” in the Company’s most recent Annual Report
on Form 10-K. Such forward-looking statements speak only as of the
date of this press release, and the Company does not undertake any
obligation to update any forward-looking statements.
Analyst Inquiries:
Mike Eliason
(317) 249-4559
mike.eliason@karauctionservices.com
Media Inquiries:
Tobin Richer
(317) 249-4521
tobin.richer@karauctionservices.com
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