For Immediate Release
Media Inquiries :
KAR Auction Services Announces $200 Million Accelerated Share Repurchase
Carmel, IN – August 3, 2015 – KAR Auction Services, Inc. (NYSE: KAR) (the “Company”) announced today that it plans to enter into an accelerated share repurchase agreement under which the Company expects to repurchase up to $200 million of the Company’s common stock on an accelerated basis. The accelerated share repurchase is part of the Company’s previously authorized program to repurchase up to $300 million of the Company’s common stock.
“We are delighted to announce that we plan to enter into an accelerated share repurchase plan, further demonstrating our commitment to creating value for KAR’s stockholders,” commented Jim Hallett, Chairman and Chief Executive Officer of KAR Auction Services, Inc. “At the same time, we remain fully committed to investing in our businesses so as to capitalize on long-term growth opportunities and given the strength of our free cash flow, we believe that we can execute both of these value creation tactics.”
The Company expects to receive an initial delivery of approximately 4.5 million shares of the Company’s common stock shortly after execution of the accelerated share repurchase agreement, with the final number of shares to be repurchased under the agreement to be based on the volume weighted average share price of the Company’s common shares during a specified calculation period. Upon final settlement of the accelerated shares repurchase agreement, the Company may receive additional shares of the Company’s common stock from the counterparty to the accelerated share repurchase agreement or, under certain circumstances, be required to deliver shares of common stock or to make a cash payment, at its election, to the counterparty. The program is expected to take up to six months to complete. The Company will fund the share repurchase through cash on hand and borrowings under its revolving credit agreement.
About KAR Auction Services, Inc.
KAR Auction Services, Inc. (NYSE: KAR), a FORTUNE® 1000 company, operates worldwide vehicle auction services and provides related services. Based in Carmel, Indiana, the KAR group of companies is comprised of ADESA, Inc. (ADESA), Insurance Auto Auctions, Inc. (IAA), Automotive Finance Corporation (AFC), and additional business units, with approximately 13,000 employees and 240 auction facilities. Together, KAR’s complementary businesses provide support, technology and logistics for the used vehicle industry. For more information, visit karauctionservices.com.
DISCLOSURE NOTICE: The information contained in this release is as of August 3, 2015. The Company assumes no obligation to update forward-looking statements contained in this release as the result of new information or future events or developments.
This release contains forward-looking information related to the Company’s plans with respect to an accelerated share repurchase that involves substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. Risks and uncertainties include, among other things, the uncertainties inherent in business and financial planning, including, without limitation, risks related to the Company’s business and prospects, adverse developments in the Company’s markets or adverse developments in the U.S. or global capital markets, credit markets or economies generally that could significantly impact the Company’s ability to implement, or realize the benefits of, the accelerated share repurchase as currently planned.
A further description of risks and uncertainties can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014, including in the sections thereof captioned “Risk Factors”, as well as in its subsequent reports on Form 10-Q and Form 8-K, all of which are filed with the Securities and Exchange Commission and available at www.sec.gov and www.karauctionservices.com.