KAR Auction Services sets terms of public offering

AP News
Posted: Nov 30, 2009 12:12 PM

KAR Auction Services Inc. said Monday it expects to raise about $340.9 million in an initial public offering.

The used vehicle auction company said in a regulatory filing that it will sell 23 million shares of common stock at a price between $15 and $17 per share. The sale's underwriters have an option to purchase up to another 3.45 million shares, the company said.

KAR said it will use the proceeds from its public offering to pay down various debts. Proceeds from any sale to the underwriters will be used for general corporate purposes.

The underwriters include Goldman Sachs & Co., BofA Merrill Lynch, Credit Suisse and J.P. Morgan. The company said it has applied to the New York Stock Exchange to trade under the symbol "KAR."

Earlier this month, the Carmel, Ind., company posted a third-quarter profit of $8.6 million compared with a loss of $169.9 million last year. Sales fell 3.3 percent to $430.1 million.