KAR Auction Services Inc. $1.75B Credit Facilities Assigned 'BB-' Rating (Recovery Rating: 2) Apr 11
- Language: English
- Published: April 2011
Auto auction company KAR has commenced an IPO of 23 million shares of its common stock, plus an overallotment of 3.45 million shares, that it expects will raise net proceeds of about $345 million to $391 million before the overallotment. KAR also has commenced a cash tender offer for a maximum aggregate total of $276.8 million of its senior notes. KAR indicated it also expects to repay $250 million of outstanding borrowings under its senior secured term loan. We are placing KAR on CreditWatch with positive implications because we believe the debt reduction could be sufficient to warrant a higher rating. On Dec. 1, 2009, Standard & Poor's Ratings Services placed its 'B-' corporate credit rating and related issue ratings...
Companies mentioned in this report are: KAR Auction Services Inc.
Action: On CreditWatch:Positive
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KAR Auction Services Inc.