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Openlane signs $325 million five-year replacement revolving facility
By Mary-Katherine Stinson
Lexington, Ky., June 26 – Openlane, Inc., formerly KAR Auction Services Inc., entered into a credit agreement on June 23 with JPMorgan Chase Bank, NA as administrative agent and sole lead arranger, which provides a $325 million five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.
The credit facility includes a $65 million sublimit for letters of credit and a $60 million sublimit for swingline loans, which can be borrowed on same-day notice.
Loans will bear interest at SOFR plus a margin ranging from 225 to 275 basis points based on the company’s consolidated senior secured net leverage ratio. The initial margin will be 225 bps.
There is a commitment fee between 25 and 35 bps on the unused amount, also based on leverage.
The revolving facility is guaranteed by certain of the company’s domestic subsidiaries and secured by the company and the subsidiaries’ assets.
JPMorgan Chase Bank, NA, Barclays, BofA Securities, Inc., Goldman Sachs Bank USA, BMO Capital Markets Corp., Fifth Third Bank, NA and U.S. Bank NA are the joint bookrunners.
Truist Bank, RBC Capital Markets, Huntington National Bank and Wells Fargo Securities LLC are the documentation agents.
The credit agreement replaces the company’s existing amended and restated credit agreement dated March 11, 2014. All the borrowings under the existing agreement were paid in full and terminated.
Any proceeds not used to pay the debt of the existing agreement may be used for working capital needs and general corporate purposes.
The issuer is a Carmel, Ind.-based provider of wholesale used vehicle auctions and a provider of floorplan financing.
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