KAR Auction Services plans bonds as part of term loan refinancing

By Paul Deckelman

New York, May 10 – KAR Auction Services, Inc. plans to issue senior notes as part of a planned debt refinancing, the company said in a statement.

It gave no further details as to the overall size of the debt financing, or the size, structure or timing of the bond component, which will be issued under Rule 144A and Regulation S.

No information on investment banks involved in the prospective bond sale and the overall refinancing has yet emerged.

A high-yield syndicate source queried by Prospect News on Wednesday replied that “we may have a small role – but no ability to comment.”

KAR said that it is seeking to refinance and reprice its existing term loans under its senior secured credit facilities. It intends to issue senior notes to refinance a portion of the term loans and then reprice the remainder of the term loans that are not refinanced with the note-sale proceeds.

The company – a Carmel, Ind.-based provider of vehicle auction services and floorplan financing to independent and franchise used-vehicle dealers – is additionally seeking to increase its existing revolving credit commitments.

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