DriveTime seeks tenders, consents for $250 million 12 5/8% notes

By Toni Weeks

San Luis Obispo, Calif., May 19 - DriveTime Automotive Group, Inc. and DT Acceptance Corp. began an offer to purchase any and all of their $250 million outstanding 12 5/8% senior secured notes due 2017, according to a press release.

DriveTime is also soliciting consents to approve some proposed amendments to the indenture governing the notes and some security documents.

The total price per $1,000 principal amount of notes will be $1,071.25, which includes a consent payment of $30.00 to holders who tender their notes and deliver consents prior to 5 p.m. ET on June 2, the early consent date.

Holders who tender after this date but prior to the tender expiration, 12:01 a.m. ET on June 17, will not receive the $30.00 consent payment.

Holders will also receive accrued interest to but not including the payment date.

Tendered notes may not be withdrawn nor consents revoked after the early consent date.

The proposed amendments would, among other things, eliminate the principal restrictive covenants and some other provisions contained in the indenture and the collateral securing the obligations of DriveTime and its subsidiary guarantors under the notes. DriveTime is seeking consents to all of the proposed amendments to the indenture and the security documents and the release of collateral as a single proposal, and thus it needs the consent of holders of at least 66 2/3% in aggregate principal amount of the outstanding notes.

Holders may not tender their notes without delivering consents or deliver consents without tendering their notes.

The tender offer and consent solicitation are subject to the satisfaction of certain conditions, including a financing condition, which requires the completion of an offering of notes with proceeds sufficient to fund the tender offer and consent solicitation.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760) is dealer manager and solicitation agent. Global Bondholder Services Corp. (212 430-3774 or 866 470-3800) is the tender agent and information agent.

DriveTime is a Phoenix-based used vehicle retailer that focuses on sales and financing services to the subprime market.

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