DriveTime cancels tender offer, consent solicitation for 12 5/8% notes

By Marisa Wong

Madison, Wis., Nov. 16 - DriveTime Automotive Group, Inc. has terminated and withdrawn the tender offer and consent solicitation for its outstanding 12 5/8% senior secured notes due 2017 jointly issued with DT Acceptance Corp., according to an 8-K filed Friday with the Securities and Exchange Commission.

Notes tendered will not be accepted for payment and will be promptly returned to holders.

According to the filing, the tender offer and consent solicitation were canceled after DriveTime terminated agreements dated Sept. 11 to sell the company. Those agreements were terminated on Nov. 14 due to unsatisfied conditions for the closing of the sale.

DriveTime said it will continue discussions with the purchasers regarding alternative transactions.

The tender offer began on Sept. 24 and was scheduled to expire at 11:59 p.m. ET on Nov. 19. The expiration date was extended from Nov. 5 and, before that, from Oct. 22.

The company solicited consents to proposed amendments to the indenture governing the 12 5/8% notes.

As of 5 p.m. ET on Nov. 5, holders had tendered and delivered consents for $192,843,000, or 96.42%, of the outstanding notes.

Additional information about the termination of the tender offer may be obtained from depositary and information agent Global Bondholder Services Corp. at 212 430-3774 or 866 873-7700.

Based in Phoenix, DriveTime sells used cars to individuals with no credit or bad credit.

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