Advanta Mortgage Prices $525 Million Mortgage Loan Securitization.SPRING HOUSE, Pa.--(BUSINESS WIRE)--August 18, 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 indirect wholly-owned subsidiary, Advanta Conduit Receivables Inc., has priced a $525 million mortgage loan securitization. The transaction is expected to close on or about August 24, 1999. Advanta Mortgage Loan Trust 1999-3 will consist of two separate groups of mortgage loans; one group consists of approximately $377.7 million of fixed-rate mortgage loans, and the other group consists of approximately $155.7 million of adjustable-rate mortgage Adjustable-rate mortgage (ARM) A mortgage that features predetermined adjustments of the loan interest rate at regular intervals based on an established index. The interest rate is adjusted at each interval to a rate equivalent to the index value plus a predetermined spread, or loans. Certificates representing ownership interests in the Trust will be sold by Bear Stearns & Co. Inc. 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. . Salomon Smith Barney is the co-manager for the certificates backed by fixed rate collateral and Prudential Securities and Salomon Smith Barney are co-managers for the certificates backed by the adjustable-rate collateral. The effective pass-through yield on the certificates backed by fixed-rate mortgage loans will be 179 basis points over treasuries and the floating-rate certificates backed by adjustable-rate mortgage loans have a 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. of 40 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 the certificates will 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. . 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 mortgage loans. Advanta is a highly focused financial services company with over 2,400 employees, approximately $12.4 billion in managed assets and approximately $9.4 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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