Solera Holdings Launches $350 Million Senior Note Private Offering to Fund Potential Acquisition

Solera Holdings announced that subsidiary Audatex North America plans to issue additional 6.000 percent senior notes due 2021 and additional 6.125 percent senior notes due 2023 in an aggregate principal amount of $350 million in a private offering.

Audatex is a provider of automotive claims, underwriting and information solutions to the insurance carrier, repair shop and government agency markets, according to Solera.

The New 2021 Notes will be issued as additional notes under the indenture governing the outstanding $1.51 billion in aggregate principal amount of the issuer’s 6.000 percent Senior Notes due 2021 that were issued on July 2, 2013, November 5, 2013 and June 2, 2014.

The New 2023 Notes will be issued as additional notes under the indenture governing the outstanding $340.0 million in aggregate principal amount of the issuer’s 6.125 percent Senior Notes due 2023 that were issued on November 5, 2013. The notes will be guaranteed by Solera and substantially all of Solera’s material wholly-owned domestic subsidiaries.

Audatex intends to use the net proceeds from the offering, together with cash on hand, to fund the purchase price of an acquisition that the company is in the late-stages of negotiating, whose purchase price could exceed $450 million.

“In the event that the company does not complete the potential acquisition, it intends to use the net proceeds for working capital and other general corporate purposes, which may include funding one or more strategic initiatives that it may undertake from time to time,” according to a company statement.

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