Advanta Mortgage Prices $500 Million Floating-Rate Mortgage Loan Securitization.SPRING HOUSE, Pa.--(BUSINESS WIRE)--Sept. 11, 1998--Advanta Corp. (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 Friday that its wholly-owned subsidiary, Advanta Mortgage Conduit Services Inc., has priced a $500 million floating-rate mortgage loan securitization. The transaction is expected to close on Sept. 23, 1998. Advanta Mortgage Loan Trust 1998-3 will consist of adjustable- rate mortgage loans. Certificates representing ownership interests in the Trust will be sold by Salomon Smith Barney as 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. . J.P. Morgan, Lehman Brothers and Prudential Securities are co-managers on the transaction. The effective pass-through yield on the floating-rate certificates will be 23 basis points over one-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). . The Trust is utilizing a pass-through structure and will be wrapped by MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association . It is anticipated that the Certificates will receive a 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 a Aaa rating from Moody's. Advanta Mortgage will retain the servicing and customer relationships of the loan accounts. Advanta is a highly focused financial services company with 2,400 employees, approximately $10.0 billion in managed assets and an additional $8.2 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 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.
CONTACT: Advanta Corp.
Kamal Advani, Investor Relations, 215/444-5335
or
Mark Dunsheath, Advanta Mortgage, 215/444-4745
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