KAR Auction plans to refinance loans, 10% notes and some 8¾% notes

By Toni Weeks

San Diego, April 26 - KAR Auction Services, Inc. plans to refinance its existing senior secured revolving credit facility and term loan B, 10% senior subordinated notes due 2015 and a portion of its 8¾% senior notes due 2014, according to a press release.

The purpose of the refinancing is to extend the maturities of the company's debt and provide greater flexibility to prepay debt by taking advantage of current market conditions. According to the release, KAR will complete the planned refinancing only if these purposes can be achieved.

The funds for the refinancing will be provided by a new $1.5 billion senior secured term loan B and $250 million senior secured revolver along with cash on hand. The refinancing is expected to be leverage neutral, excluding fees and expenses of the refinancing transactions.

KAR will conduct a conference call with current and potential new lenders on April 28 to discuss the proposed refinancing.

Carmel, Ind.-based KAR is the holding company for Adesa, Inc., Insurance Auto Auctions, Inc. and Automotive Finance Corp.

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