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Openlane, Adesa unit sign C$175 million revolver to fund acquisition
By Mary-Katherine Stinson
Lexington, Ky., Jan. 26 – Openlane, Inc. and subsidiary Adesa Auctions Canada entered into a first amendment agreement on Jan. 19 with JPMorgan Chase Bank, NA as administrative agent, which provides a C$175 million revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.
The amendment also establishes a sublimit of up to C$50 million for Canadian dollar borrowings under the company’s existing revolving facility.
Loans under the Canadian revolving facility will bear interest at adjusted term Corra at a margin ranging from 250 basis points to 300 bps based on the company’s consolidated senior secured net leverage ratio.
Loans under the Canadian sublimit will bear interest at adjusted term Corra plus a margin ranging from 225 bps to 275 bps also based on the company’s consolidated senior secured net leverage ratio. This is the same margin as loans under the existing revolving credit facility.
There is a commitment fee between 25 and 35 bps on the unused amount, also based on leverage.
The revolving facility is guaranteed by certain of the company’s domestic and Canadian subsidiaries and secured by the company’s assets.
The proceeds of the Canadian revolving facility may be used by Adesa Auctions to finance a portion of the purchase price of its acquisition of certain assets from Manheim Canada, to pay certain fees and expenses in connection with the first amendment transactions and for ongoing working capital needs and general corporate purposes.
The issuer is a Carmel, Ind.-based provider of wholesale used vehicle auctions and a provider of floorplan financing. It was formerly known as KAR Auction Services Inc.
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