KAR Auction tenders for up to $600 million 5 1/8% notes due 2025

By Wendy Van Sickle

Columbus, Ohio, Aug. 2 – KAR Auction Services Inc. said it began a cash tender offer to buy up to $600 million principal amount of its $950 million of outstanding 5 1/8% senior notes due 2025 (Cusip: 48238TAA7), according to a news release Tuesday.

The company is offering a total consideration of $1,007.50 per $1,000 principal amount, which includes a $30 early tender premium that will be paid only to holders who tender their notes by 5 p.m. ET on Aug. 15.

The company also will pay accrued interest up to but excluding the settlement date, which is expected to be Aug. 17 for early tenders and Aug. 31 for final tenders.

The offer will expire at 11:59 p.m. ET on Aug. 29.

Tenders may be withdrawn until 5 p.m. ET on Aug. 15.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-3822) is the dealer manager.D.F. King & Co., Inc. (800 488-8095, 212 269-5550 for banks and brokers only or kar@dfking.com) is the tender and information agent.

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

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