RICHMOND, Va., May 2 /PRNewswire-FirstCall/ -- CarMax, Inc. (NYSE: KMX)
announced today that it has completed a private placement of $718,125,000
principal amount of CarMax Auto Owner Trust 2008-A Asset-Backed Notes.
Wachovia Capital Markets, LLC acted as placement agent.
In the transaction, investors purchased $718,125,000 of notes backed by
auto loan receivables originated by CarMax Auto Finance. CarMax retained the
$24,375,000 of Class C notes, which were not offered. The ratings of the
notes were provided by Standard & Poor's and Moody's Investors Service, Inc.
and were based on the credit quality of the underlying auto loan receivables
and their expected performance, the structure of the transaction, the credit
enhancements provided and the experience of CarMax as a servicer.
Note Initial Interest Rate Weighted Ratings
Class Principal Amount Per Annum Average Life Standard & Poor's Moody's
A-1 $142,000,000 2.93573% 0.22 years A-1+ Prime-1
A-2 268,000,000 4.12% 1.00 years AAA Aaa
A-3 184,000,000 4.86% 2.20 years AAA Aaa
A-4 79,125,000 5.56% 3.21 years AAA Aaa
B 45,000,000 10.27% 3.54 years A A2
The credit enhancements include a reserve account, overcollateralization
and the subordination of the Class B notes and the Class C notes. The
required reserve account amount is $3,750,000, which is 0.50% of the aggregate
initial outstanding principal balance of the auto loan receivables. The
initial amount of overcollateralization is $7,500,000, representing 1.00% of
the aggregate initial outstanding principal balance of the auto loan
receivables. Thereafter, the structure of the transaction is designed to
apply certain excess collections on the auto loan receivables to additional
principal payments on the notes so that the amount of overcollateralization
increases over time to a target amount equal to the greater of (a) 4.25% of
the currently outstanding principal balance of the auto loan receivables or
(b) 0.50% of the initial outstanding principal balance of the auto loan
receivables. If certain performance tests with respect to cumulative net
losses on the auto loan receivables are met, the percentage in clause (a)
above will be reduced.
The Class A notes and the Class B notes were sold to investors without
registration of such notes under the Securities Act of 1933, as amended (the
"Securities Act") or any state securities laws in reliance upon one or more
exemptions from the registration requirements of the Securities Act and such
laws. Such notes may not be offered or sold absent such registration or
applicable exemption from the registration requirements of the Securities Act
and applicable state laws. This press release shall not constitute an offer
to sell or the solicitation of an offer to buy any of these securities.
About CarMax
CarMax, a Fortune 500 company, and one of the Fortune 2008 "100 Best
Companies to Work For," is the nation's largest retailer of used cars.
Headquartered in Richmond, Va., CarMax currently operates 94 used car
superstores in 43 markets. The CarMax consumer offer provides our customers
the opportunity to shop for vehicles the way they shop for items at other
national retailers, and it is structured around four customer benefits: low,
no-haggle prices; a broad selection; high quality vehicles; and a customer-
friendly sales process. During the fiscal year ended February 29, 2008, we
retailed 377,244 used cars and sold 222,406 wholesale vehicles at our in-store
auctions. For more information, access the CarMax website at
http://www.carmax.com.
(Logo: http://www.newscom.com/cgi-bin/prnh/20011214/CARMAXLOGO )
SOURCE CarMax, Inc.
