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KAR Auction ups tender cap for two notes series to $73.8 million
By Susanna Moon
Chicago, Dec. 2 - KAR Auction Services Inc. said it increased the cap on the cash tender offer to buy its $199,408,000 10% senior subordinated notes due 2015 and its $450 million 8¾% senior notes due 2014.
The maximum amount KAR will pay, excluding interest, is now $73.8 million, up from $73.5 million.
The notes are listed in order of acceptance priority level.
As of 5 p.m. ET on Dec. 1, the early tender date, investors had tendered $106,307,000 principal amount of the first-priority notes and $66,751,000 principal amount of the second-priority notes.
The company said that because the total amount of first-priority notes tendered for purchase plus the premiums to be paid is more than the tender cap, it does not expect to accept any tendered second-priority notes for purchase.
For each $1,000 principal amount, the company will pay $1,080 for 10% notes tendered by the early tender date. The purchase price for the 8¾% notes was going to be $1,043.75.
Holders who tender after the early date but by the offer expiration of 11:59 p.m. ET on Dec. 14 will receive the total payout less the $30 early tender premium.
The company also will pay accrued interest up to but excluding the settlement date, which is expected to be Dec. 15.
Goldman Sachs & Co. (attn: liability management, 800 828-3182 or 212 902-5183) is the dealer manager. Global Bondholder Services Corp. (866 294-2200 or 212 430-3774 for banks and brokers only) is the information agent and depositary.
KAR also said on Nov. 12 that it completed the amendment to its $1.87 billion senior credit facility that permits the repurchase of up to $75 million of its notes.
As part of the amendment, the company prepaid $75 million of its term loan, according to an 8-K filed with the Securities and Exchange Commission.
KAR Auction Services is a Carmel, Ind.-based provider of wholesale used vehicle auctions and a provider of floorplan financing.
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