Published on 5/27/2010 in the Prospect News High Yield Daily.
New Issue: DriveTime prices $200 million 12 5/8% seven-year notes at 98.854 to yield 12 7/8%
By Paul A. Harris
St. Louis, May 27 - DriveTime Automotive Group, Inc. and DT Acceptance Corp. priced a $200 million issue of 12 5/8% seven-year senior secured notes (B3/B/) at 98.854 to yield 12 7/8% on Thursday, according to an informed source.
The yield printed on top of the yield talk. The reoffer price came in line with discount talk of 1 point to 1.5 points.
Of the issue, a face amount of $163 million represents new money. The remaining $37 million face amount was acquired by Verde Capital Corp. and by Raymond C. Fidel, the DriveTime Automotive chief executive officer, in exchange for certain other outstanding notes.
Hence, gross proceeds resulting from the placement were approximately $161.132 million.
Jefferies & Co., RBS Securities Inc. and UBS Investment Bank were the joint bookrunners.
Proceeds will be used to repay debt.
DriveTime is a Phoenix-based used vehicle retailer. It focuses solely on sales and financing services to the subprime market.
| Issuers: | DriveTime Automotive Group, Inc. and DT Acceptance Corp.
|
| Total issue size: | $200 million
|
| New money: | $163 million
|
| Converted notes: | $37 million (Verde Capital Corp. and DriveTime CEO will exchange $37 million of certain outstanding notes for notes of the same series as the new issue, with identical terms, but issued in a certificated form)
|
| Gross proceeds: | $161.132 million (approximate)
|
| Maturity: | June 15, 2017
|
| Securities: | Senior secured notes
|
| Bookrunners: | Jefferies & Co., Inc., RBS Securities Inc., UBS Securities LLC
|
| Co-managers: | Stephens Inc., Robert W. Baird & Co. Inc., JMP Securities LLC
|
| Coupon: | 12 5/8%
|
| Price: | 98.854
|
| Yield: | 12 7/8%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until June 15, 2014, then callable at 106.313, 103.156, par on and after June 15, 2016
|
| Equity clawback: | 35% at 112.625 until June 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | May 27
|
| Settlement date: | June 4
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| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A, Regulation S and Regulation D with registration rights
|
| Price talk: | 12 7/8% yield, including approximately 1 to 1.5 points of OID
|
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