Openlane to repurchase 53% of Series A Convertible Preferred Stock

Openlane (KAR) has reached definitive agreements to repurchase 53% of the company’s Series A Convertible Preferred Stock originally issued in June 2020. The transaction, for which the cash consideration is approximately $559M, will reduce the preferred shares held by funds advised by Apax Partners, L.P. by approximately 50% and the preferred shares held by funds advised by Periphas Capital, L.P. by approximately 80%. The repurchase price of $29.70 per share of common stock, on an as-converted basis, represents a negotiated market-based buyout, including the value for future dividends tied to those preferred shares. The repurchase transactions are anticipated to close as soon as practicable after September 30 and prior to October 20.