Adesa gets $500 million amended and restated credit facility

By Sara Rosenberg

New York, July 28 - Adesa Inc. closed on a new all pro rata $500 million amended and restated senior credit facility, according to a company news release.

Bank of America served as the lead arranger on the deal.

The facility consists of a $350 million revolving credit facility due June 30, 2010 with an interest rate of Libor plus 125 basis points and a $150 million term loan A due June 30, 2010 with an interest rate of Libor plus 125 bps.

By comparison, the previous $525 million facility consisted of a $150 million revolver due June 21, 2009 with an interest rate of Libor plus 225 bps, a $175 million term loan A due June 21, 2009 with an interest rate of Libor plus 225 bps and a $200 million term loan B due June 21, 2010 with an interest rate of Libor plus 250 bps.

"Our amended and restated $500 million senior credit facility provides Adesa with both a lower cost of funds and increased financial flexibility. In tandem with Adesa's strong balance sheet and cash flow, I'm confident that this credit facility should enable our management team to continue to fund our growth strategies," said Cam Hitchcock, executive vice president and chief financial officer, in the release.

Adesa is a Carmel, Ind.-based provider of wholesale vehicle auctions and used vehicle dealer floorplan financing.

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