KAR Auction tenders for up to $73.5 million of 10% notes, 8¾% notes

By Susanna Moon

Chicago, Nov. 12 - KAR Auction Services Inc. said it began a cash tender offer to buy up to $73.5 million principal amount of its $199,408,000 10% senior subordinated notes due 2015 and its $450 million 8¾% senior notes due 2014.

The notes are listed in order of acceptance priority level.

For each $1,000 principal amount, the company will pay $1,080 for the 10% notes and $1,043.75 for the 8¾% notes for notes tendered by 5 p.m. ET on Dec. 1, the early tender date.

Holders who tender after the early date but by the offer expiration of 11:59 p.m. ET on Dec. 14 will receive the total payout less the $30 consent premium.

The company also will pay accrued interest up to but excluding the settlement date, which is expected to be Dec. 15.

Goldman, Sachs & Co. (attn: liability management, 800 828-3182 or 212 902-5183) is the dealer manager. Global Bondholder Services Corp. (866 294-2200 or 212 430-3774 for banks and brokers only) is the information agent and depositary.

KAR also said on Nov. 12 that it completed the amendment to its $1.87 billion senior credit facility that permits the repurchase of up to $75 million of its notes.

As part of the amendment, the company prepaid $75 million of its term loan, according to an 8-K filed with the Securities and Exchange Commission.

KAR Auction Services is a Carmel, Ind.-based provider of wholesale used vehicle auctions and a provider of floorplan financing.

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