By Paul A. Harris
Portland, Ore., May 22 – IAA, Inc. (Insurance Auto Auctions, Inc.) priced an upsized $500 million issue of eight-year senior notes (B/BB-) at par to yield 5½% on Wednesday, according to market sources,
The issue size increased from $400 million.
The notes, related to KAR Auction Services Inc.'s spinoff of its salvage automobile auction business, priced at the tight end of the 5½% to 5 5/8% yield talk and tighter than initial guidance in the 6% area.
J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the joint bookrunners.
Proceeds, together with proceeds from a senior secured credit facility, will be used to pay a special dividend to KAR Auction Services related to the spinoff of IAA, as well as to pay fees related to the spinoff, and for general corporate purposes.
KAR is a Carmel, Ind.-based facilitator of used car sales, procurement and financing services.
| Issuer: | IAA Spinco Inc., to be renamed IAA, Inc. (Insurance Auto Auctions, Inc.)
|
| Amount: | $500 million, increased from $400 million
|
| Maturity: | 2027
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Barclays, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Call protection: | Three years
|
| Trade date: | May 22
|
| Settlement date: | June 6
|
| Ratings: | S&P: B
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5½% to 5 5/8%
|
| Marketing: | Roadshow
|
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