New Issue: Adesa sells $125 million eight-year notes to yield 7 5/8%

By Paul A. Harris

St. Louis, June 16 - Adesa Inc. sold $125 million of eight-year senior subordinated notes (B1/B+) at par on Wednesday to yield 7 5/8%, according to a syndicate source.

Price talk was 7 5/8% to 7 7/8%.

UBS Investment Bank and Merrill Lynch & Co. ran the books for the public issue. The co-managers were ABN Amro, Banc One Capital Markets, Harris Nesbitt, Wells Fargo Securities, Piper Jaffray and BNP Paribas.

Proceeds will be used to repay debt.

The issuer is a Carmel, Ind., operator of used vehicle and auto salvage auctions, and vehicle redistribution services.

Issuer:	Adesa Inc.
Amount:	$125 million
Maturity:	June 15, 2012
Security description:	Senior subordinated notes
Bookrunners:	UBS Investment Bank, Merrill Lynch & Co.
Co-managers:	ABN Amro, Banc One Capital Markets, Harris Nesbitt, Wells Fargo Securities, Piper Jaffray, BNP Paribas
Coupon:	7 5/8%
Price:	Par
Yield:	7 5/8%
Spread:	308 basis points
Call features:	Make-whole call at Treasuries plus 50 basis points until June 15, 2008, then callable at 103.813, 101.906, par on or after June 15, 2010
Equity clawback:	Until June 15, 2007 for 35% at 107.625
Pricing date:	June 16
Settlement date:	June 21
Ratings:	Moody's: B1
	Standard & Poor's: B+
Price talk:	7 5/8%-7 7/8%

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