ADESA, Inc. Announces Pricing for Tender Offer and Consent Solicitation for Its 7 5/8% Senior Subordinated Notes Due 2012

    CARMEL, IND., April 18 /CNW/ - ADESA, Inc. (the "Company") (NYSE:  KAR)
announced today that it has determined the price for its previously announced
tender offer and consent solicitation for any and all of its outstanding 7
5/8% senior subordinated notes due 2012 (the "Notes"). The total consideration
for holders of the Notes (the "Holders") who validly tendered Notes and
delivered consents on or prior to the expiration of the consent solicitation
on April 5, 2007 will be $1,060.23 per $1,000.00 principal amount of the
Notes. The total consideration includes a consent payment of $30.00 per
$1,000.00 principal amount of the Notes. In addition to the consideration
payable with respect to the Notes, the Company will pay accrued and unpaid
interest up to, but not including, the applicable settlement date.

    The total consideration was determined as of 2:00 p.m., New York City
time, on April 17, 2007, by reference to a fixed spread of 50 basis points
above the bid-side yield on the 4.875% U.S. Treasury Note due May 31, 2008. As
of 5:00 p.m., New York City time, on April 5, 2007, Holders of over 99% of the
aggregate principal amount of the Notes had tendered and consented. Holders
who have tendered their Notes and delivered their consents may no longer
withdraw their Notes or revoke their consents.

    The tender offer and consent solicitation will expire at 8:00 a.m., New
York City time, on April 23, 2007, unless terminated or extended. The initial
settlement date, for Notes validly tendered and accepted for payment prior to
the expiration of the consent solicitation on April 5, 2007, is expected to be
April 20, 2007.

    Bear, Stearns & Co. Inc. is acting as Dealer Manager for the tender offer
and as the Solicitation Agent for the consent solicitation and can be
contacted at (212) 272-5112 (collect) or (877) 696-BEAR (toll free). D.F. King
& Co., Inc. is the Information Agent and can be contacted at (212) 269-5550
(collect) or (888) 628-9011 (toll free). Copies of the Offer to Purchase and
Consent Solicitation Statement, dated March 22, 2007 and the related Consent
and Letter of Transmittal, as the same may be amended from time to time (the
"Offer Documents"), and other related documents may be obtained from the
Information Agent.

    The tender offer and consent solicitation are being made solely on the
terms and conditions set forth in the Offer Documents. Under no circumstances
shall this press release constitute an offer to buy or the solicitation of an
offer to buy the Notes or any other securities of the Company. The tender
offer and consent solicitation are being made solely pursuant to the Company's
Offer Documents. This press release also is not a solicitation of consents to
the proposed amendments to the Indenture. No recommendation is made as to
whether holders of the Notes should tender their Notes or give their consent
to the proposed amendments to the Indenture.

    About ADESA, Inc.

    Headquartered in Carmel, Indiana, ADESA, Inc. (NYSE:  KAR) is North
America's largest publicly traded provider of wholesale vehicle auctions and
used vehicle dealer floorplan financing. The Company's operations span North
America with 54 ADESA used vehicle auction sites, 42 impact salvage vehicle
auction sites and 85 AFC loan production offices. For further information on
ADESA, Inc., visit the Company's website at

    Forward-Looking Statements

    This press release contains forward-looking statements based on current
ADESA management expectations. Those forward-looking statements include all
statements other than those made solely with respect to historical fact.
Numerous risks, uncertainties and other factors may cause actual results to
differ materially from those expressed in any forward-looking statements.
These factors include, but are not limited to, (1) the occurrence of any
event, change or other circumstances that could give rise to the termination
of the merger agreement; (2) the outcome of any legal proceedings that have
been or may be instituted against ADESA and others relating to the merger
agreement; (3) the inability to complete the Merger due to the failure to
satisfy other conditions to consummate the Merger; (4) risks that the proposed
transaction disrupts current plans and operations and the potential
difficulties in employee retention as a result of the Merger; (5) the effect
of the announcement of the Merger on our customer relationships, operating
results and business generally; (6) the ability to recognize the benefits of
the Merger; (7) the amount of the costs, fees, expenses and charges related to
the Merger; (8) significant changes in volume of vehicles bought, sold or
financed by ADESA's customers; (9) the mix of vehicles sold at ADESA's
auctions and OEM pricing programs; (10) fluctuations and volatility in the
market value of used and salvage vehicles; (11) ADESA's ability to execute its
strategic initiatives successfully; and (12) other risks described from time
to time in ADESA's filings with the Securities and Exchange Commission,
including the Annual Report on Form 10-K for 2006. Many of the factors that
will determine the outcome of the subject matter of this press release are
beyond ADESA's ability to control or predict. ADESA undertakes no obligation
to revise or update any forward-looking statements, or to make any other
forward-looking statements, whether as a result of new information, future
events or otherwise.

For further information:

For further information: ADESA, Inc. Analyst Contact: Jonathan Peisner,
317-249-4390 Treasurer or Media Contact: Julie Vincent, 317-249-4233 Director
of Corporate Communications

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890