DriveTime talks $400 million seven-year notes to yield in 8% area

By Paul A. Harris

Portland, Ore., May 21 - DriveTime Automotive Group, Inc. and DT Acceptance Corp. talked their $400 million offering of seven-year senior secured notes (expected B3/confirmed B) to price with a yield in the 8% area, according to a syndicate source.

Books closed on Wednesday, and the deal is set to price on Thursday morning.

Wells Fargo Securities LLC is the left bookrunner for the Rule 144A and Regulation S for life notes offering. Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are the joint bookrunners. Guggenheim Securities is the co-manager.

The notes become callable after three years at par plus 75% of the coupon.

The Phoenix-based used vehicle retailer plans to use the proceeds to repay its 12 5/8% senior secured notes due 2017.

DriveTime Automotive primarily focus on the sale and lease of used vehicles and related products to the subprime market.

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