AFC parent grows securitization facility from $800 million to $950 million

Carmel, Ind.-based 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.”

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.