XLerate reveals first- and second-lien term loan price talk

By Sara Rosenberg

New York, Jan. 13 – XLerate Group (American Auto Auction Group LLC) released price talk on its $570 million six-year first-lien term loan and $180 million seven-year second-lien term loan in connection with its lender call on Thursday, according to a market source.

The first-lien term loan is talked at SOFR+CSA plus 475 basis points to 500 bps with a 25 bps step-down at 0.5x inside closing total net leverage, a 0.75% floor and an original issue discount of 99, and the second-lien term loan is talked at SOFR+CSA plus 850 bps to 875 bps with a 25 bps step-down at 0.5x inside closing total net leverage, a 0.75% floor and a discount of 98, the source said.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The first-lien term loan has 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.

The company’s $810 million of credit facilities also include a $60 million five-year revolver.

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

Commitments are due at 4 p.m. ET on Jan. 27, the source added.

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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