Advanta Mortgage Prices $247.5 Million Revolving Home Equity Loan Securitization.SPRING HOUSE, Pa.--(BUSINESS WIRE)--May 19, 1999-- 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) ; ADVNZ) announced today that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Advanta Mortgage Conduit Services, Inc., has priced a $247.5 million revolving home equity loan securitization. The transaction is expected to close on May 27, 1999. Advanta Revolving Home Equity Loan Trust 1999-A consists of variable rate revolving home equity lines of credit backing a single class of floating rate notes. Bear, Stearns & Co. Inc. is the lead underwriter Lead underwriter The head of a syndicate of financial firms that are sponsoring an initial public offering of securities or a secondary offering of securities. Could also apply to bond issues. and Lehman Brothers Inc. is the co-manager. The pass-through rate on the notes will be 25 basis points over one-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). . The notes are expected to be wrapped by Ambac Assurance Corporation Ambac Assurance Corporation A subsidiary of publicly traded Ambac Financial Group that provides financial guarantees for municipal borrowers and for asset-backed and structured issues. and receive an 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. rating by Standard & Poor's and an Aaa rating from Moody's. Advanta will retain the servicing and customer relationships of the revolving home equity lines of credit. Advanta is a highly focused financial services company with over 2,500 employees, over $12.8 billion in managed assets and approximately $8.9 billion in assets serviced for third parties. Advanta provides consumers and small businesses with innovative products and services including mortgages, equipment leases, business credit cards, insurance and deposit products. The Company also provides a full range of loan purchasing, contract servicing and securitization services to the mortgage industry. Any statements released by Advanta that are forward looking are made pursuant to the safe harbor 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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