KAR Auction finalizes $950 million term loan B discount at 99.75

By Sara Rosenberg

New York, Sept. 16 – KAR Auction Services Inc. tightened the original issue discount on its $950 million seven-year term loan B (Ba2/BB-) to 99.75 from 99.5, according to a market source.

Pricing on the term loan is Libor plus 225 basis points with a 0% Libor floor, and the debt has 101 soft call protection for six months.

Earlier in syndication, the spread on the term loan was lowered from talk in the range of Libor plus 250 bps to 275 bps.

J.P. Morgan Securities LLC, BofA Securities Inc., Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, Fifth Third Bank and U.S. Bank are the leads on the deal that allocated on Friday.

Proceeds will be used to refinance existing bank debt and to add cash to the balance sheet.

KAR is a Carmel, Ind.-based provider of technology-driven remarketing solutions to the wholesale used vehicle industry.

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