KAR Auction wraps amendment, revising senior secured leverage covenant

By Sara Rosenberg

New York, Nov. 30 - KAR Auction Services Inc. completed the amendment to its credit facility that modified the senior secured leverage ratio (see table) and increased the amount of permitted restricted payments, according to an 8-K filed with the Securities and Exchange Commission on Friday.

J.P. Morgan Securities is the administrative agent on the deal.

The amendment closed on Nov. 29.

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

Table: senior secured leverage ratio

Last day of fiscal quarter ending on or about Ratio

June 30, 2011 4.25:1.00

Sept. 30, 2011 4.25:1.00

Dec. 31, 2011 4.25:1.00

March 31, 2012 4.25:1.00

June 30, 2012 4.25:1.00

Sept. 30, 2012 4.25:1.00

Dec. 31, 2012 4.00:1.00

March 31, 2013 4.00:1.00

June 30, 2013 4.00:1.00

Sept. 30, 2013 4.00:1.00

Dec. 31, 2013 4.00:1.00

March 31, 2014 4.00:1.00

June 30, 2014 4.00:1.00

Sept. 30, 2014 4.00:1.00

Dec. 31, 2014 3.50:1.00

March 31, 2015 3.50:1.00

June 30, 2015 3.50:1.00

Sept. 30, 2015 3.50:1.00

Dec. 31, 2015 3.00:1.00

March 31, 2016 and thereafter 2.50:1.00

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