KAR Auction lifts term loan B-3 to $1.05 billion, updates issue price

By Sara Rosenberg

New York, May 22 – KAR Auction Services Inc. upsized its term loan B-3 to $1.05 billion from $897 million, according to a market source.

Also, the issue price on the B-3 loan, as well as on a $720 million term loan B-2, firmed at par, the tight end of the 99.875 to par talk, the source said.

Pricing on the term loan B-3 is still Libor plus 250 basis points with a 0% Libor floor, and pricing on the term loan B-2 is still Libor plus 225 bps with a 0% Libor floor.

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

Proceeds will be used to reprice an existing term loan B-2 due 2021 from Libor plus 317.75 with a 0.75% Libor floor and an existing term loan B-3 due 2023 from Libor plus 350 bps with a 0.75% Libor floor and, due to the upsizing, for general corporate purposes.

As of Dec. 31, there was $1.08 billion outstanding under the term loan B-2 and $1.34 billion outstanding under the term loan B-3; however, the debt is being paid down in part with proceeds from a $950 million senior notes offering.

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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