Research And Markets Research And Markets

Research Update: KAR Auction Services Inc. 'B-' Rating On Watch Pos On Announcement Of IPO, Cash Tender Offer To Reduce Debt Dec 09

  • ID: 1869837
  • December 2009
  • Standard & Poors
1 of 3


  • KAR Auction Services Inc.
  • MORE

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

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

Note: Product cover images may vary from those shown
2 of 3

KAR Auction Services Inc.

Note: Product cover images may vary from those shown
3 of 3
Note: Product cover images may vary from those shown