Advanta Closes $400 Million Business Credit Card Securitization.Business Editors SPRING HOUSE, Pa.--(BUSINESS WIRE)--Nov. 16, 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 Business Receivables Corp., has completed a $400 million business credit card securitization, backed by receivables in revolving business credit card accounts originated by Advanta Bank Corp. Advanta Business Card Master Trust Series 2000-C consists of receivables in a portfolio of business revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. card accounts which back four classes of five year, floating rate notes: $320 million of Class A Notes, $38 million of Class B Notes, $28 million of Class C Notes and $14 million of Class D Notes. Advanta has initially retained the Class D Notes. Morgan Stanley Dean Witter and Barclays Capital were the co-lead managers and Salomon Smith Barney was the co-manager. The weighted average pass-through rate Pass-through rate The net interest rate passed through to investors after deducting servicing, management, and guarantee fees from the gross mortgage coupon. on the notes sold was 38 basis points over one-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). . The Class A Notes were 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 & Poor's and "Aaa" by Moody's, the Class B Notes were rated "A" by Standard & Poor's and "A2" by Moody's and the Class C Notes were rated "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. " by Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index and "Baa2" by Moody's. Advanta has retained the servicing and customer relationships of the revolving business credit card accounts. Advanta (www.advanta.com) is a highly focused financial services company with over 2,700 employees, servicing approximately $25 billion of assets, including approximately $12 billion in managed assets and approximately $13 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 named one of the 500 Most Admired Companies in America in FORTUNE Magazine's most recent annual survey. In June 2000, American Banker ranked Advanta Bank Corp. third among the top 100 community banks in the nation in terms of return on average assets. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion