KAR Auction cuts spread on $950 million term B to Libor plus 225 bps

By Sara Rosenberg

New York, Sept. 12 – KAR Auction Services Inc. reduced pricing on its $950 million seven-year term loan B (Ba2/BB-) to Libor plus 225 basis points from talk in the range of Libor plus 250 bps to 275 bps, according to a market source.

As before, the term loan has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

J.P. Morgan Securities LLC, BofA Securities Inc., Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, Fifth Third Bank and U.S. Bank are the leads on the deal.

Proceeds will be used to refinance existing bank debt and to add cash to the balance sheet.

KAR is a Carmel, Ind.-based provider of technology-driven remarketing solutions to the wholesale used vehicle industry.

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