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KAR accepts $68.33 million 10% notes, no 8¾% notes in tender offer
By Susanna Moon
Chicago, Dec. 15 - KAR Auction Services Inc. said it completed 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.
As of 11:59 p.m. ET on Dec. 14, the expiration date, investors had tendered $106,307,000 principal amount of 10% notes and $66,751,000 principal amount of 8¾% notes. These amounts are unchanged from 5 p.m. ET on Dec. 1, the early tender date.
Under offer terms, the company accepted for purchase $68,333,000 of the 10% notes and none of the 8¾% notes.
KAR will pay a total of $73,799,640, plus about $800,000 for accrued interest, for the notes.
The company said on Dec. 2 that the maximum amount it would pay for the 10% notes and 8¾% notes, excluding interest, was increased to $73.8 million from $73.5 million. The notes are listed in order of acceptance priority level.
As of the early date, the total amount of first-priority notes tendered for purchase plus the premiums to be paid was more than the tender cap.
For each $1,000 principal amount, the company will pay $1,080.00 for 10% notes tendered by the early tender date. The purchase price for the 8¾% notes was going to be $1,043.75.
If any holders had tendered after the early date, they would have received the total payout less the $30.00 early tender premium.
The company also will pay accrued interest up to but excluding the settlement date, which was 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, for banks and brokers only, 212 430-3774) is the information agent and depositary.
KAR Auction Services is a Carmel, Ind.-based provider of wholesale used vehicle auctions and a provider of floorplan financing.
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