KAR plans loan amendment to allow for IPO and repayment of notes

By Sara Rosenberg

New York, Oct. 14 - KAR Holdings Inc. is looking to amend its credit facility to allow for an initial public offering of common stock and for the repayment of notes with proceeds from that offering, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The company would like to repay and/or repurchase one or more of its senior fixed-rate, senior floating-rate and senior subordinated fixed-rate unsecured notes with proceeds from the stock offering combined with $200 million of cash on hand.

In addition, the company plans to repay at least $250 million of its term loan.

Also, the company said on Wednesday that it expects to increase the proposed maximum size of the stock offering to $500 million.

KAR is a Carmel, Ind.-based provider of wholesale used vehicle auctions.

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