KAR Auction launches $150 million add-on, term loan B repricing

By Sara Rosenberg

New York, Feb. 28 - KAR Auction Services Inc. held a call at 1 p.m. ET on Thursday to launch a $150 million incremental term loan B and a repricing of its existing roughly $1.67 billion term loan B, according to sources.

J.P. Morgan Securities LLC is the lead bank on the deal.

The enlarged $1.82 billion term loan B due May 2017 is talked at Libor plus 300 basis points with a 1% Libor floor and a par offer price, sources said.

The loan has 101 soft call protection through November 2013.

Proceeds from the add-on will be used to redeem $150 million of floating-rate senior notes due May 1, 2014.

The repricing will take the existing term loan down from Libor plus 375 bps with a 1.25% Libor floor.

Existing lenders will get paid out at 101 with the repricing due to the current call protection, sources added.

Closing is expected in March, subject to market and other customary conditions.

KAR is a Carmel, Ind.-based provider of vehicle auction services and a provider of floorplan financing to independent and franchise used vehicle dealers.

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