Advanta Bank Corp. Prices $386 Million Equipment Lease Securitization.Business Editors SPRING HOUSE, Pa.--(BUSINESS WIRE)--March 20, 2000 Advanta Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ADVNB; ADVNA ADVNA Advanta Corporation (stock symbol) ) announced today that its wholly-owned subsidiary, Advanta Bank Corp., has priced a $386 million equipment lease securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. . The securities are backed primarily by small-ticket equipment lease receivables contracts including copiers, microcomputers, printers and communication equipment originated through Advanta Bank Corp. The issue includes four classes of public notes: $181.3 million of 6.840% Class A-1 notes; $63.3 million of 7.255% Class A-2 notes; $84.6 million of 7.405% Class A-3 notes; $28.2 million of 7.560% Class B notes; $18.8 million of 7.685% Class C notes; and $9.4 million of 8.015% Class D notes. The notes are ERISA-eligible investments. Advanta Bank Corp. will service this portfolio. The transaction utilized a senior/subordinate structure to receive a Aaa rating from Moody's and a AAA from Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals on the Class A notes, Aa3 and AA- on the Class B notes, A2 and A on the Class C notes, and Baa2 and BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. + on the Class D notes, respectively. Lead manager for the transaction is Prudential Securities. Co-managers are Barclays Capital Barclays Capital is the investment banking division of Barclays plc. It is a primary dealer in U.S. Treasury securities and various European Government bonds. Barclays Capital is led by CEO Robert (Bob) Diamond, an American who had been vice-chairman of Credit Suisse First and Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Dean Witter Dean Witter may refer to:
Advanta (http://www.advanta.com) is a highly focused financial services company with over 2,600 employees, servicing approximately $24 billion of assets, including $12 billion in managed assets and approximately $12 billion in assets serviced for third parties. Advanta provides consumers and small businesses with targeted financial products and services, including non-conforming mortgages, business credit cards, equipment leases, insurance and deposit products. The Company is also one of the largest servicers of non-conforming mortgages for third parties in the country. Advanta has leveraged its first-class direct marketing and information-based expertise to develop state-of-the-art data warehousing and statistical modeling tools that identify potential customers and new target markets. Advanta created one of the first automated underwriting and sales engines in the non-conforming mortgage industry. The Company also offers its customers and business partners a broad range of self-service financial solutions and other services on the Internet. Advanta was ranked one of the 500 Most Admired Companies in America in FORTUNE Magazine's most recent annual survey. Any statements released by Advanta that are forward looking are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that any forward-looking statements involve risks and uncertainties, which may affect the Company's business and prospects. At present, significant risks and uncertainties include factors that could impact the timing of or likelihood of the closing of the securitization including: the Company's managed net interest margin; receivables volume; prepayment rates; interest rate fluctuations; the level of delinquencies; customer bankruptcies and charge-offs; the amount and rate of growth of the Company's expenses; competitive pressures from other providers of financial services; the effects of governmental regulation; the amount and cost of financing available to the Company and its subsidiaries; and the impact of the ratings of debt of the Company and its subsidiaries. Additional risks that may affect future performance are detailed in the Company's filings with the SEC. |
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