DriveTime to price $350 million seven-year secured notes on Tuesday

By Paul A. Harris

Portland, Ore., June 17 – DriveTime Automotive Group, Inc. plans to price a $350 million offering of seven-year senior secured notes (expected ratings B3/B-) on Tuesday afternoon, according to market sources.

Initial price talk is in the 8% to 8½% area.

A New York investor lunch and conference call were scheduled to begin at 12:30 p.m. ET on Monday.

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

The note become callable after three years at par plus 50% of the coupon.

Proceeds will be used to repurchase existing 8% senior secured notes due 2021 and for general corporate purposes.

Co-issuers will be Bridgecrest Acceptance Corp. and SilverRock Group Holdings, Inc.

DriveTime Automotive is a Tempe, Ariz.-based used vehicle dealership enterprise primarily focused on the subprime market.

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