Latham & Watkins Advises on Debt Financing in Connection with Ritchie Bros. Auctioneers’ Successful Acquisition of IAA, Inc.

On March 20, 2023, Ritchie Bros. Auctioneers Incorporated (NYSE: RBA) (TSX: RBA), a global asset management and disposition company, successfully completed its acquisition of IAA, Inc. (NYSE: IAA), a leading global digital marketplace connecting vehicle buyers and sellers, in a stock and cash transaction valued at approximately US$7.3 billion.

Latham & Watkins represented the lead arrangers and administrative agent in connection with a US$1.825 billion senior secured term loan A facility and a US$750 million senior secured revolving credit facility, with a banking team led by New York partner Alfred Xue, counsel Seung-Ju Paik, and associate Christian DeSimone.

Latham also represented the initial purchasers in connection with a Rule 144A and Regulation S offering of US$550 million aggregate principal amount of 6.750% senior secured notes due March 15, 2028 and US$800 million aggregate principal amount of 7.750% senior notes due March 15, 2031, with a capital markets team led by New York partners Senet Bischoff and Erika Weinberg and associates Hana Nah, Egzon Sulejmani, and Adam Weber.

Proceeds of the term loan A facility and notes were used to finance the acquisition. Proceeds of the revolving credit facility will be used for general corporate purposes.