AT&T Unit to securitize $1 billion of credit card receivables.NEW YORK--(BUSINESS WIRE)--April 23, 1996--AT&T Universal Card Services Corp. (UCS (Universal Character Set) An ISO/IEC format for coding character sets. ISO/IEC 10646 was synchronized with Unicode; however, Unicode adds additional constraints, and compliance with 10646 does not guarantee compatibility with Unicode. See Unicode. ), which markets a consumer credit card, Tuesday announced it has priced a $1 billion credit card securitization transaction. The securitization, Series 1996-1, consists of two classes of publicly traded floating rate certificates which will be issued by AT&T Universal Card Master Trust. The senior class, Class A, represents $850 million in receivables. The five-year Class A certificates will accrue interest at 12.5 basis points over the three-month London Interbank Offered Rate London Interbank Offered Rate A short-term interest rate often quoted as a 1,3,6-month rate for U.S.dollars. (LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). ) and were priced at par. The $80 million in subordinated five-year Class B certificates were also priced at par and will accrue interest at three-month LIBOR plus 26 basis points. The initial interest rate on both the Class A and Class B certificates will be set on April 30, 1996 and will reset quarterly. Series 1996-1 also includes a privately funded $70 million collateral invested amount, which will be subordinated to the Class A and Class B certificates and will provide credit enhancement for the benefit of certificate-holders. The transaction was managed by an underwriting group led by J.P. Morgan & Co., with Lehman Brothers, Merrill Lynch & Co. and UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Securities LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control as co-managers. The Class A certificates are expected to be rated "AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. " by Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index and Fitch, and "Aaa" by Moody's; the Class B certificates are expected to be rated "A" by Standard and Poor's and Fitch, and "A2" by Moody's. UCS will retain the servicing and customer relationships of the credit card accounts. UCS currently has more than $13.3 billion in total managed receivables and more than 17.9 million accounts. This does not constitute an offering to sell securities, which can be made only by means of a prospectus. CONTACT: AT&T Universal Card Services Mitchell Montagna, 904/954-8896 (office) 904/519-9863 (home) or Eileen M. Connolly, 908/221-6731 (office) 914/361-4615 (home) |
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