XLerate Group updates first- and second-lien term loan pricing

By Sara Rosenberg

New York, Jan. 31 – XLerate Group (American Auto Auction Group LLC) firmed pricing on its $570 million six-year first-lien term loan (B2/B-) at SOFR+CSA plus 500 basis points, the high end of the SOFR+CSA plus 475 bps to 500 bps talk, and on its $180 million seven-year second-lien term loan (Caa2/CCC) at SOFR+CSA plus 875 bps, the high end of the SOFR+CSA plus 850 bps to 875 bps talk, according to a market source.

Furthermore, the 25 bps step-down at 0.5x inside closing total net leverage was removed from the first- and second-lien term loans.

In addition, the 101 soft call protection on the first-lien term loan was extended to one year from six months, and the hard call protection on the second-lien term loan was changed to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source said.

The first-lien term loan still has a 0.75% floor and an original issue discount of 99, the second-lien term loan still has a 0.75% floor and a discount of 98, and both loans still have CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The company’s $810 million of credit facilities also include a $60 million five-year revolver (B2/B-).

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

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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