Solera Holdings to Issue Private Notes to Raise Capital

Solera Holdings’ indirect wholly-owned subsidiary, Audatex North America Inc., 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 $100.0 million in a private offering. Audatex will use the proceeds for working capital and other general corporate purposes, which “may include funding the acquisition of the Insurance and Services Division of Pittsburgh Glass Works LLC,” that includes LYNX Services, GTS Services and Glaxis.

The capital could also be used for potential put or call options on securities of Solera’s Service Repair Solutions joint venture and one or more additional strategic initiatives that it may undertake from time to time, according to the company’s statement.

The New 2021 Notes will be issued as additional notes under the indenture governing the outstanding $1.36 billion in aggregate principal amount of the Issuer’s 6.000 percent Senior Notes due 2021 that were issued on July 2, 2013 and November 5, 2013.  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.

The Notes will be offered to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and to certain persons outside of the U.S. pursuant to Regulation S under the Securities Act. Neither the Notes nor the related guarantees have been registered under the Securities Act or any state or other securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable state securities laws, according to the company’s statement.

Solera is a leading global provider of software and services to the automobile insurance claims processing and decision support industries. Solera is active in over 65 countries across six continents. The Solera companies include Audatex in the United States, Canada, and in more than 45 additional countries, Informex in Belgium and Greece, Sidexa in France, ABZ and Market Scan in the Netherlands, HPI in the United Kingdom, Hollander serving the North American recycling market, AUTOonline providing salvage disposition in a number of European and Latin American countries, IMS providing medical review services, and Explore providing data and analytics to United States property and casualty insurers; and Service Repair Solutions, a joint venture with Welsh, Carson, Anderson & Stowe, that provides solutions for the service, maintenance and repair market.

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