KAR Holdings launches $1.1 billion three-part notes offer

By Paul A. Harris

St. Louis, April 2 - KAR Holdings, Inc. is holding a roadshow for its $1.1 billion three-part offering of notes this week and expects to price the deal next week, according to market sources.

The Westchester, Ill., automotive specialty salvage services provider plans to issue $600 million in tranches of eight-year senior fixed-rate and floating-rate notes (B3/CCC) and $500 million of 10-year senior subordinated notes (Caa1/CCC).

Bear Stearns, UBS, Goldman Sachs and Deutsche Bank Securities are joint bookrunners for the Rule 144A and Regulation S deal.

Proceeds, along with $1.79 billion of new bank debt, will be used to fund the acquisition of Adesa, Inc. by Kelso, GS Capital, ValueAct Capital and Parthenon Capital for $27.85 per share.

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