American Auto to launch $810 million credit facilities on Thursday

By Sara Rosenberg

New York, Jan. 11 – American Auto Auction Group LLC (XLerate Group) is scheduled to hold a bank meeting at 11 a.m. ET on Thursday to launch $810 million of credit facilities, according to a market source.

Jefferies LLC, BofA Securities Inc. and BMO Capital Markets are the arrangers on the deal.

The facilities consist of a $60 million five-year revolver, a $570 million six-year first-lien term loan and a $180 million seven-year second-lien term loan, the source said.

The term loans have a 0.75% floor and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Proceeds will be used with new cash equity to fund the acquisition of America’s Auto Auction by Brightstar Capital Partners-owned XLerate Group.

Carmel, Ind.-based XLerate and Dallas based America’s Auto Auction are vehicle auction companies.

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