KAR Auction launches $1.5 billion term B at Libor plus 375-400 bps

By Sara Rosenberg

New York, April 28 - KAR Auction Services Inc. launched its $1.5 billion senior secured term loan B on Thursday with price talk of Libor plus 375 basis points to 400 bps with a 1.25% Libor floor and an original issue discount of 99 to 991/2, according to a market source.

The company's $1.75 billion credit facility also provides for a $250 million revolver.

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

Proceeds will be used to refinance the existing senior secured revolver and term loan B borrowings, 10% senior subordinated notes due 2015 and some 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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