KAR Auction eyes $1.75 billion credit facility for refinancing effort

By Paul A. Harris

Portland, Ore., April 26 - KAR Auction Services, Inc. plans to launch a $1.75 billion credit facility on Thursday, according to market sources.

The deal features a $1.5 billion senior secured term loan B and a $250 million revolver.

Goldman Sachs & Co., Barclays Capital Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the lead banks.

Proceeds will be used to refinance the company's existing senior secured revolver and term loan B, as well as its 10% senior subordinated notes due 2015 and a portion of its 8¾% senior notes due 2014.

The company's floating-rate senior notes due 2014 will remain outstanding.

KAR Auction is the Carmel, Ind.-based holding company for Adesa, Inc., a provider of wholesale used vehicle auctions.

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