Adesa $125 million eight-year notes talked at 7 5/8%-7 7/8%

By Paul A. Harris

St. Louis, June 14 - Adesa Inc.'s proposed $125 million offering of eight-year senior subordinated notes (B1/B+) is talked to yield 7 5/8% to 7 7/8%, a syndicate source said Monday.

Pricing of the company's concurrent 6.25 million share initial public offering is scheduled to take place after Tuesday's close, with the bond deal expected to price either late Tuesday or early Wednesday.

UBS Investment Bank and Merrill Lynch & Co. are joint bookrunners for the public offering. ABN Amro, Banc One Capital Markets, Harris Nesbitt, BNP Paribas, Piper Jaffray and Wells Fargo Securities are co-managers.

The notes will come with four years of call protection.

Proceeds will be used to repay debt.

Adesa is a Carmel, Ind., operator of used vehicle and auto salvage auctions and vehicle redistribution services.

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