Bear Stearns and Deutsche Bank are in the market with an increased bank line for Insurance Auto Auctions. The banks increased an existing term loan from $115 million to $230 million; $200 million will be funded and $30 million will be delayed draw. Pricing is LIBOR plus 2 1/2%. A conference call was held last Wednesday.
The financing was initially put in place in April 2005 to back the company's acquisition by Kelso & Co. The new funding will be used to back a series of acquisitions.Scott Pettit, cfo, said the financing will be used for expansion, but could not discuss any specific acquisitions. He said he could not comment past the 8K the company filed last Wednesday with the Securities and Exchange Commission.
Pricing on the old six-year, $50 million revolver was LIBOR plus 2 3/4% and pricing on the six-and-a-half year, $115 million term loan "B" was LIBOR plus 3% (LMW, 4/25/2005).
In early May, the company announced its first quarter results, recording revenues of $77.7 million compared with $70.9 million for the first quarter of 2005, according to a release. It says it reported consolidated EBITDA consistent with the definition in its senior credit agreement of $14.3 million during the quarter.