KAR Auction tenders for up to $140 million of 5 1/8% notes due 2025

By Mary-Katherine Stinson

Lexington, Ky., May 3 – KAR Auction Services Inc. said it began an offer to buy up to $140 million principal amount of its $350 million of outstanding 5 1/8% senior notes due 2025 (Cusip: 48238TAA7, U24457AA8) with a portion of the proceeds received from the previously announced sale of its U.S. physical auction business to Carvana, according to a news release attached to an 8-K filing with the Securities and Exchange Commission.

The Regulation S and Rule 144A notes will be purchased at a par of $1,000.

If tenders exceed the $140 million cap, then the notes will be purchased on a pro rata basis subject to authorized minimum denominations and applicable depositary procedures.

The company also will pay accrued interest up to but excluding the settlement date.

The asset disposition offer will expire at 5 p.m. ET on June 2, which is also the withdrawal deadline.

KAR Auction Services, which will be renamed OpenLane, Inc., is a Carmel, Ind.-based provider of wholesale used vehicle auctions and a provider of floorplan financing.

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