KAR Auction flexes add-on, term B repricing to Libor plus 275 bps

By Sara Rosenberg

New York, March 7 - KAR Auction Services Inc. reduced pricing on its $150 million incremental term loan B and existing $1.67 billion term loan B repricing to Libor plus 275 basis points from Libor plus 300 bps with a step-down to Libor plus 275 bps, according to a market source.

As before, the enlarged $1.82 billion term loan B due May 2017 has a 1% Libor floor, a par offer price and 101 soft call protection through November 2013.

Recommitments are due at noon ET on Friday.

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

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

And, 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.

Closing is expected this month, 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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