Published on 6/16/2010 in the Prospect News High Yield Daily.
New Issue: TitleMax upsizes to $250 million, prices 13¼% five-year notes at 99.078 to yield 13½%
By Paul A. Harris
St. Louis, June 16 - TMX Finance LLC and TitleMax Finance Corp. priced an upsized $250 million issue of 13¼% five-year senior secured notes (B2/B+/) at 99.078 to yield 13½% on Wednesday, according to a market source.
The yield printed on top of the yield talk. The reoffer price came in line with discount talk of approximately 1 point.
Jefferies & Co. ran the books for the issue, which was upsized from $225 million. Stephens Inc. was the co-manager.
Proceeds will be used to repay existing debt.
TitleMax is a Savannah, Ga.-based auto title lending company with more than 550 company-owned stores serving individuals who generally have limited access to traditional sources of consumer credit. The loans that the company makes are secured by a first lien on the customer's automobile.
| Issuers: | TMX Finance LLC and TitleMax Finance Corp.
|
| Face amount: | $250 million, increased from $225 million
|
| Proceeds: | $247,695,000
|
| Maturity: | July 15, 2015
|
| Security description: | Senior secured notes
|
| Bookrunner: | Jefferies & Co.
|
| Co-manager: | Stephens Inc.
|
| Coupon: | 13¼%
|
| Price: | 99.078
|
| Yield: | 13½%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until July 15, 2013, then callable at 106.625, par on and after July 15, 2014
|
| Equity clawback: | 35% at 113.25% until July 15, 2013
|
| Excess cash flow offer: | The lesser of $30 million and 75% of excess cash flow at 102%
|
| Change-of-control put: | 101%
|
| Trade date: | June 16
|
| Settlement date: | June 21
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 13½% yield, including 1 point OID
|
| Marketing: | Full roadshow
|
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