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KAR Auction Services, Inc. Announces Amendment to U.S. Securitization Facility
Transaction Increases U.S. facility from $800 Million to $950 Million
Carmel, IN, December 18, 2014 — KAR Auction Services, Inc. (NYSE:
KAR) today announced that its subsidiaries Automotive Finance
Corporation (AFC) and AFC Funding Corporation (AFC Funding), have
entered into Amendment No. 3 to the Fifth Amended and Restated
Receivables Purchase Agreement (the Amendment), by and among AFC, AFC
Funding, Fairway Finance Company, LLC (“Fairway Finance”), Chariot
Funding LLC (“Chariot Funding”), Deutsche Bank AG, New York Branch
(“Deutsche Bank”), BMO Harris Bank N.A. (“BMO”), Fifth Third Bank
(“Fifth Third”), JPMorgan Chase Bank, N.A. (“JPMorgan”) and BMO Capital
Markets Corp. The Amendment increases AFC Funding’s U.S. committed
liquidity from $800 million to $950 million.
Commenting upon the amendment to the securitization agreement, John Hammer, CEO and president of AFC stated, “I’m extremely grateful to our banking partners for their confidence in AFC as demonstrated by this larger securitization facility, secured through June 2016. Not only does this amendment to our securitization facility strengthen AFC’s capabilities as a premier floorplan funding source throughout the United States, but more importantly, it underscores our commitment to all our dealer customers.”
About KAR Auction Services, Inc.
KAR Auction Services, Inc. (NYSE: KAR), a FORTUNE® 1000 company, operates used vehicle auction services for North American sellers and buyers worldwide. Based in Carmel, Ind., 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 nearly 12,000 employees across the globe.
ADESA operates 65 wholesale used vehicle auctions and IAA has 168 salvage vehicle auctions. Both companies offer leading online auction platforms to provide greater access for customers. AFC provides inventory financing and comprehensive business services primarily to independent used vehicle dealers from its 111 locations. Together, KAR’s complementary businesses provide support, technology and logistics for the used vehicle industry. For more information, visit karauctionservices.com.
Forward Looking Statements
Certain statements contained in this release include “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,” 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. Factors that could cause or contribute to such differences include those matters disclosed in the Company’s Securities and Exchange Commission filings. The Company does not undertake any obligation to update any forward-looking statements.