OPENLANE Completes Repurchase of 53% of Series A Convertible Preferred Stock

Rhea-AI Summary

OPENLANE (NYSE: KAR) announced on Oct 8, 2025 that it has closed the repurchase of 53% of its Series A Convertible Preferred Stock and amended its Credit Agreement to add $550 million in secured term loans to finance the repurchases. The company said the financing was substantially oversubscribed, allowing tighter pricing and a more preferred rate. Management described the demand as validating OPENLANE's cash-generation profile and positioning for continued growth while remaining focused on long-term shareholder value.

Positive

• Repurchased 53% of Series A convertible preferred stock
• Raised $550 million in secured term loans to fund repurchases

Negative

• Added $550 million of secured debt, increasing leverage
• 47% of Series A preferred stock remains outstanding after repurchase

News Market Reaction

-2.37%

1 alert

-2.37% News Effect

On the day this news was published, KAR declined 2.37%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Strong Market Demand for Term Loan Financing

CARMEL, Ind., Oct. 8, 2025 /PRNewswire/ -- OPENLANE, Inc. (NYSE: KAR), a leading operator of digital marketplaces for wholesale used vehicles, today announced it has closed its repurchase of 53% of the Company's Series A Convertible Preferred Stock and amended its existing Credit Agreement with an additional $550 million in secured term loans to finance the repurchases.

"I am very pleased that our financing was substantially oversubscribed, allowing us to tighten pricing and achieve an even more preferred rate," said Brad Herring, EVP and CFO of OPENLANE. "I believe this level of interest and support from the investment community reinforces the strong cash generation characteristics of our asset-light digital marketplace and OPENLANE's positioning for continued growth. We remain focused on executing our strategy committed to delivering long-term shareholder value."

OPENLANE Contacts:
Media Inquiries:	Analyst Inquiries:
Laurie Dippold	Bill Wright
(317) 468-3900	(317) 249-4559
laurie.dippold@openlane.com	investor_relations@openlane.com

About OPENLANE
OPENLANE, Inc. (NYSE: KAR) makes wholesale easy by connecting the leading automotive manufacturers, dealers, rental companies, fleet operators, captive finance and lending institutions as buyers and sellers to create the most advanced digital marketplace for used vehicles. Our innovative products and services deliver a fast, fair and transparent experience that helps customers make smarter decisions and achieve better outcomes. Headquartered in Carmel, Indiana, OPENLANE has employees across the United States, Canada, Europe, Uruguay and the Philippines. For more information and the latest OPENLANE news, visit corporate.openlane.com.

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SOURCE OPENLANE, Inc.

FAQ

What did OPENLANE (KAR) announce on Oct 8, 2025 regarding preferred stock?

OPENLANE announced it closed the repurchase of 53% of its Series A convertible preferred stock.

How did OPENLANE finance the repurchase of Series A preferred stock?

OPENLANE amended its Credit Agreement to add a $550 million secured term loan facility to finance the repurchases.

Did the financing for OPENLANE's repurchase attract investor demand on Oct 8, 2025?

Yes. The company said the financing was substantially oversubscribed, enabling tighter pricing.

What is the shareholder impact of OPENLANE's Oct 8, 2025 repurchase?

The repurchase reduces preferred stockholdings by 53%, potentially affecting capital structure and future distributions.

Does OPENLANE (KAR) still have Series A preferred stock outstanding after the repurchase?

Yes. After repurchasing 53%, approximately 47% of the Series A preferred stock remains outstanding.