KAR Auction Services Announces Proposed Notes Offering
22 May 2017 - 9:58PM
KAR Auction Services, Inc. (NYSE:KAR) (the “Company”) announced
today that it plans to offer, subject to market conditions,
approximately $800 million aggregate principal amount of senior
notes due 2025 (the “notes”). The Company intends to use the net
proceeds from the notes offering to repay a portion of the existing
term loans outstanding under its senior secured credit facilities
and for general corporate purposes.
In connection with the notes offering, the Company plans to
reprice the remainder of the term loans that are not repaid and
increase the revolving commitments under its senior secured credit
facilities from $300 million to $350 million.
The notes have not been and will not be registered under the
U.S. Securities Act of 1933, as amended (the “Securities Act”), any
state securities laws or the securities laws of any other
jurisdiction, and may not be offered or sold in the United States
absent registration or an applicable exemption from registration.
Accordingly, the notes are being offered and sold only to persons
reasonably believed to be qualified institutional buyers in
accordance with Rule 144A under the Securities Act and outside the
United States in reliance on Regulation S under the Securities
Act.
This press release does not constitute an offer to sell, or the
solicitation of an offer to buy, any security and shall not
constitute an offer, solicitation or sale in any jurisdiction in
which such offer, solicitation or sale would be unlawful.
About KAR Auction Services
KAR Auction Services (NYSE:KAR) provides sellers and buyers
across the global wholesale used-vehicle industry with innovative,
technology-driven remarketing solutions. KAR’s unique end-to-end
platform supports whole car, salvage, financing, logistics and
other ancillary and related services, including the sale of
approximately 5.1 million units valued at over $40 billion through
our auctions. Our integrated physical, online and mobile
marketplaces reduce risk, improve transparency and streamline
transactions for customers in 110 countries. Headquartered in
Carmel, Ind., KAR has approximately 17,400 employees across the
United States, Canada, Mexico and the United Kingdom.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of 1995
and which are subject to certain risks, trends and
uncertainties. In particular, statements made that are not
historical facts may be forward-looking statements. Words
such as “should,” “may,” “will,” “anticipates,” “expects,”
“intends,” “plans,” “believes,” “seeks,” “estimates,”
“contemplates” and similar expressions identify forward-looking
statements. Such statements are not guarantees of future
performance and are subject to risks and uncertainties that could
cause actual results to differ materially from the results
projected, expressed or implied by these forward-looking
statements. Such forward-looking statements include
statements regarding the intention to issue new senior notes, to
repay and/or reprice a portion of existing term loans and to
increase existing revolving commitments. Factors that could cause
or contribute to such differences include those matters disclosed
in the Company’s Securities and Exchange Commission filings,
including under the heading “Risk Factors” in the Company’s most
recent Annual Report on Form 10-K. Such forward-looking
statements speak only as of the date of this press release, and the
Company does not undertake any obligation to update any
forward-looking statements.
Analyst Inquiries:
Mike Eliason
(317) 249-4559
mike.eliason@karauctionservices.com
Media Inquiries:
Tobin Richer
(317) 249-4521
tobin.richer@karauctionservices.com
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