TitleMax Plans $225M HY Bond Deal


Savannah, Ga.-based TitleMax plans to bring a $225 million junk bond offering to the market, according to sources. The company will use the proceeds to repay bankruptcy exit debt.

The company, which provides loans to people using their vehicle titles as collateral, plans to sell senior secured notes due 2015, according to sources. Lead bookrunner Jefferies will wrap up a road show with the deal pricing sometime next week.

TitleMax won approval from U.S. Bankruptcy Court in May for its reorganization plan, which includes repaying all of its debt. It used a $126.5 million loan in April to help its exit.

Moody’s Investors Service assigned a B2 rating to the proposed notes and gave the company a B2 corporate family rating.