KAR Auction Services Announces Underwriters Exercise of Option to Purchase Additional Shares

For Immediate Release
Eric Loughmiller
Executive Vice President and Chief Financial Officer
(317) 249-4254
eric.loughmiller@karauctionservices.com

KAR Auction Services Announces Underwriters’ Exercise of Option to Purchase Additional Shares

Carmel, IN – November 8, 2013 – KAR Auction Services, Inc. (NYSE: KAR) (the “Company”) announced today that the underwriters in its previously announced secondary offering exercised in full their option to purchase an additional 3,584,487 shares of common stock.

The selling stockholder, KAR Holdings II, LLC (the “LLC”), is selling all the shares. 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 closing of the sale of 27,481,070 shares, which includes the 3,584,487 additional shares, is expected to occur on Wednesday, November  13, 2013.  Upon the closing, the LLC will no longer have an ownership stake in KAR Auction Services.

The offering is being made pursuant to the Company’s existing effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission.

Credit Suisse Securities (USA) LLC and Goldman, Sachs & Co. are acting as joint book-running managers for the offering.
When available, copies of the final prospectus supplement and accompanying prospectus related to this offering may be obtained from: Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, New York 10010, or by telephone at 1-800-221-1037, or by email at newyork.prospectus@credit-suisse.com; or Goldman, Sachs & Co., Attention: Prospectus Department, 200 West Street, New York, New York 10282, or by telephone at 1-866-471-2526, or by facsimile at 1- 212-902-9316 or by email at prospectus-ny@ny.email.gs.com.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About KAR Auction Services 
KAR Auction Services, Inc. is the holding company for ADESA, Inc. (ADESA), Insurance Auto Auctions, Inc. (IAA) and Automotive Finance Corporation (AFC).  ADESA is a leading provider of wholesale used vehicle auctions with 65 North American locations and its subsidiary OPENLANE provides a leading Internet automotive auction platform.  IAA is a leading salvage vehicle auction company with 164 sites across the United States and Canada.  AFC is a leading provider of floorplan financing to independent and franchise used vehicle dealers with 105 sites across the United States and Canada.  Together, the Company provides a unique, comprehensive, end-to-end solution for its customers’ remarketing needs.