AutoTrader to repay its credit facilities with proceeds from IPO

By Tali David

Minneapolis, June 15 - AutoTrader Group, Inc. plans to repay debt under its credit facilities with proceeds from its initial public offering of class A common stock, according to a filing with the Securities and Exchange Commission.

The credit facilities consist of two tranches of term A loans, a term B loan facility and a revolving credit facility.

One term A loan tranche and the revolver mature in 2015, the other term A loan tranche matures in 2017 and the term B loan facility matures in 2016.

As of March 31, the weighted average interest rate under the credit facilities was 2.99%.

AutoTrader said it may also use a portion of the net proceeds for general corporate purposes, including acquisitions of technologies, products or companies that complement its business.

The company registered to sell up to $300 million of common stock via bookrunners Goldman Sachs & Co. and Morgan Stanley.

AutoTrader is an Atlanta-based online marketplace for automobile sales and provider of software to automotive dealers.

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