KAR Auction Services, Inc. announced the commencement of an underwritten offering of 12.0 million shares of its common stock at $27.35 per share by existing stockholder KAR Holdings II, LLC. The LLC is controlled by entities affiliated with Kelso Investment Associates VII, L.P.; GS Capital Partners VI, L.P.; ValueAct Capital Master Fund, L.P.; and Parthenon Investors II, L.P. The company will not receive any proceeds from the offering. In connection with the offering, the LLC will grant the underwriters an option to purchase up to 1.8 million additional shares. The offering was expected to close and settle on Sept. 24.
Credit Suisse Securities (USA) LLC and Goldman, Sachs & Co. are acting as joint book-running managers for the offering.