Dealer Services Corp. of Indiana Details Security Offering & New Credit Facility
Along with entering a new credit facility, Dealer Services Corp. of Indiana recently consummated the offering of $252.2 million of asset-backed securities due in 2014.
Company officials explained the securities — issued through DSC Floorplan Master Owner Trust — are composed of $225 million of senior-secured notes and $27.2 million of subordinate-secured notes. They mentioned the $225 million of senior notes achieved a DBRS rating of AAA(sf) and the $27.2 million of subordinate notes achieved a DBRS rating of BBB(sf).
DSC indicated the Rule 144A series 2011-1 offering was led by Deutsche Bank Securities, who was the sole bookrunner on the transaction.
“The 144A notes have been placed to over 10 institutional investors including some of the largest insurance companies and investment firms in the United States,” company officials said.
In addition to the asset-backed securities offering, DSC also announced that it entered into a new $290 million revolving credit facility agented by Deutsch Bank. The company indicated the revolving credit facility is a multi-bank facility, and together with the asset-backed securities, this facility provides DSC significant capital for continued growth.
“DSC is very pleased to be the first in our industry to successfully issue asset-backed securities to the capital markets,” stated Marty McFarland, president of Dealer Services Corp.
“These transactions were highly rated and have brought DSC a new and broad funding source for our future growth,” McFarland continued. “I would like to commend Deutsche Bank on their execution of these facilities and congratulate them on the high caliber of investors and bank participants they brought forth. We are quite happy to have such high-quality investors behind DSC.
“We are pleased and appreciative of our long relationship with Deutsche Bank,” he went on to say. “With these facilities available, DSC will continue to grow and provide our dealers the highest level of service and products available in the market.”