PHOENIX, May 5 /PRNewswire/ -- DriveTime(R), the largest used car sales and finance company in the country serving people with less than perfect credit, today announced the expansion of its primary credit facilities and a significant infusion of capital into the Company.
On April 29th, the Company expanded its warehouse credit facilities from a combined $500 million to $735 million and renewed its revolving residual facility for $40 million. The Company increased its revolving warehouse facility with Greenwich Capital Financial Products, Inc. ("Greenwich") to $385 million with a maturity date of March 31, 2009. The Company also increased its revolving warehouse facility with Deutsche Bank AG to $350 million with a maturity date of March 31, 2010. The Company renewed with Greenwich its revolving line of credit secured by its residual interests in securitizations at $40 million maturing March 31, 2009. Additionally, the Company's existing shareholders have committed to a capital infusion of an additional $75 million.
"It is no secret that the capital markets especially the securitization markets have been in disarray," states Mark Sauder, DriveTime(R) Chief Financial Officer. "We are very pleased that our financial partners, particularly RBS Greenwich Capital and Deutsche Bank, in increasing our warehouse lines recognize the fundamental soundness of our business model and the services we provide to our customers."
In addition, through the Company's award winning community outreach initiative called SchoolTime(R), the Company recently completed a book drive in partnership with Books-A-Go-Go. Under that drive and this partnership, the Company's SchoolTime(R) schools have now qualified for free books under the federal Books First program resulting in over 25,000 free books going to the Company's partner schools.
About DriveTime(R):
DriveTime(R) and DT Acceptance Corporation, headquartered in Phoenix, Arizona, is the nation's largest integrated used car sales and finance company with assets totaling more than $1.5 billion. The company primarily serves customers with less than perfect credit. For more information log onto http://www.DriveTime.com
This press release contains several "forward-looking statements." Forward-looking statements are those, which use words such as "believe," "expect," "anticipate," "intend," "plan," "may," "will," "likely," "should," "estimate," "continue," "future" or other comparable expressions. These words indicate future events and trends. Forward-looking statements are the Company's current views with respect to future events and financial performance. These forward-looking statements are subject to many assumptions, risks and uncertainties, that could cause actual results to differ significantly from historical results or from those anticipated by the Company. Such risks include -- but are not limited to -- fluctuating interest rates, increased competition, regulatory changes, tightening labor markets, variable economic conditions, the ability to raise additional capital, reliance on capital markets and adverse portfolio performance. It is advisable not to place undue reliance on the Company's forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact:
Jon Ehlinger
VP/Secretary/General Counsel
DriveTime(R)
602-852-6637
jon.ehlinger@drivetime.com