KAR Auction plans to refinance with $1.5B term loan

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KAR Auction Services Inc., a provider of vehicle-auction services, is seeking to refinance existing debt with a $1.5 billion senior secured term loan and a $250 million senior secured revolving credit facility.

The company will host a lender meeting at 11 a.m. in New York on April 28 to discuss the financing, according to a person with knowledge of the transaction who declined to be identified because the deal is private. JPMorgan Chase & Co. is leading the refinancing, the person said.

Carmel-based KAR will use proceeds from the transaction and cash on hand to refinance its outstanding credit line and term loan B, and its 10 percent senior subordinated notes due 2015 and some of its 8.75 percent senior bonds due 2014, the company said Tuesday in a regulatory filing with the Securities and Exchange Commission.

KAR’s existing $1.57 billion term loan and $250 million revolving line of credit come due in 2013, according to data compiled by Bloomberg.

Eric Loughmiller, chief financial officer of KAR, didn’t immediately return a phone call seeking comment.
 

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