KAR Auction breaks; Primedia up on buyout; Asset Acceptance softens; FTD dips on refi

By Sara Rosenberg

New York, May 16 - KAR Auction Services Inc.'s senior secured credit facility freed up for trading during Monday's market hours, with the term loan B quoted above its original issue discount price.

Also in trading, Primedia Inc.'s term loan rallied as the company announced that it is being bought out by TPG Capital, Asset Acceptance Capital Corp.'s term loan weakened with the withdrawal of its proposed credit facility, and FTD's term loan dropped with refinancing news.

Over in the primary, Scotsman Industries Inc. upsized its term loan add-on and tightened the offer price due to strong demand, and Gibson Energy ULC, SRAM International Corp., Toys 'R' Us Inc. and Lumen released pricing guidance as their transactions were launched to lenders during the session.

Furthermore, Walter Investment Management Corp. set timing and talk on its proposed credit facility, Drake Beam Morin began circulating early guidance on its newly announced upcoming deal, and AES Corp. and Barbri surfaced with new loan plans.

KAR Auction Services' credit facility made its way into the secondary market on Monday, with the $1.7 billion term loan B quoted at par bid, par ¼ offered on the open and then it moved up to par 5/8 bid, par 7/8 offered, according to a trader.

Pricing on the B loan is Libor plus 375 basis points with a step-down to Libor plus 350 bps when secured leverage is less than 2.75 times.

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