KAR Auction Services to launch $1.45 billion in bank debt on Tuesday

By Sara Rosenberg

New York, Feb. 22 – KAR Auction Services Inc. is scheduled to hold a lender call at 1 p.m. ET on Tuesday to launch $1.45 billion in bank debt, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

The debt consists of a $300 million five-year revolver and a $1.15 billion seven-year term loan B-3, the source said.

Price talk on the term loan is Libor plus 375 basis points to 400 bps with a 0.75% Libor floor and an original issue discount of 98.5 to 99, the source continued.

Proceeds will be used to refinance a term loan B-1 due March 2017, to term out revolver drawings and for general corporate purposes.

KAR is a Carmel, Ind.-based provider of vehicle auction services and a provider of floorplan financing to independent and franchise used vehicle dealers.

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