Item 1.01 Entry Into a Material Definitive Agreement.
On May 29, 2020, KAR Auction Services, Inc., a Delaware corporation (the
"Company"), entered into an amendment to its existing credit agreement. The
amendment (1) provides a financial covenant "holiday" through and including June
30, 2021; (2) for purposes of determining compliance with the financial covenant
for the fiscal quarters ending September 30, 2021 and December 31, 2021, permits
the Consolidated EBITDA for the applicable test period to be calculated on an
annualized basis; (3) establishes a monthly minimum liquidity covenant through
and including September 30, 2021 of $225.0 million; and (4) effectively places
certain limitations on the ability to make certain investments, junior debt
repayments, acquisitions and restricted payments and to incur additional secured
indebtedness until October 1, 2021.
The foregoing summary of the Fourth Amendment Agreement, dated May 29, 2020 (the
"Fourth Amendment"), by and among the Company, JPMorgan Chase Bank, N.A., as
administrative agent, certain subsidiaries of the Company party thereto and the
certain revolving lenders party thereto is not complete and is qualified in its
entirety by reference to the full and complete text of the Fourth Amendment, a
copy of which is attached hereto as Exhibit 10.1 and incorporated herein by
reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
EXHIBIT NO. DESCRIPTION OF EXHIBIT
10.1 Fourth Amendment Agreement, dated May 29 , 2020, by and
among the Company, JPMorgan Chase Bank, N.A., as administrative agent, certain
subsidiaries of the Company party thereto and the certain revolving lenders
party thereto .
104 Cover Page Interactive Data File - the cover page XBRL tags are embedded
within the Inline XBRL document.
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