Insurance Auto Auctions increases tender consideration for 11% notes

By Angela McDaniels

Seattle, March 27 - Insurance Auto Auctions, Inc. increased the tender consideration it will pay for its $150 million of 11% senior notes due 2013 to $1,157.50 from $1,120.00 per $1,000 principal amount of notes, according to a company news release.

The tender consideration includes a consent payment of $30.00 per $1,000 principal amount of notes tendered by 5 p.m. ET on April 5, the consent deadline.

The tender offer ends at 8 a.m. ET on April 23.

The company began the offer on March 22. It is also soliciting consents to amend the note indenture to elimination substantially all of the restrictive covenants and certain events of default. Holders who tender must consent to the proposed amendments.

As announced on Dec. 22, Insurance Auto plans to combine operations with Adesa, Inc., which has entered into a definitive merger agreement, under which affiliates of Kelso & Co., GS Capital Partners, ValueAct Capital and Parthenon Capital will acquire all of Adesa's outstanding common stock for $27.85 per share in cash.

The offer is conditioned on the receipt of consents from holders of a majority of the notes, the closing of the merger and the payment in full of all the loans, reimbursement obligations and other obligations and liabilities under Insurance Auto's credit agreement.

Bear, Stearns & Co. Inc. is the dealer manager (877 696-BEAR or call collect 212 272-5112). D.F. King & Co., Inc. is the information agent (888 887-1266 or call collect 212 269-5550).

Insurance Auto is a Westchester, Ill., provider of automotive total loss and specialty salvage services.

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