Advanta Prices $649.7 Million Mortgage Loan Securitization.Business Editors SPRING HOUSE, Pa.--(BUSINESS WIRE)--Aug. 17, 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) ; ADVNZ) announced today that its wholly-owned subsidiary, Advanta Conduit Receivables, Inc., has priced a $649.7 million mortgage loan 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 transaction is expected to close on or about August 22, 2000. Advanta Mortgage Loan Trust 2000-2 consists a pool of approximately $656.3 million of fixed rate mortgage loans. 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. , Morgan Stanley Dean Witter and Prudential Securities Corp. are the co-managers for the class A-1 Certificates and Morgan Stanley Dean Witter is the co-manager for the Class A-2, A-3, A-4, A-5 and A-6 Certificates. The effective pass-through yield on the certificates will be 154 basis points over treasuries. The Trust is utilizing a pass-through structure and the certificates 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. . 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 will retain the servicing and customer relationships of the mortgage loans. Advanta is a highly focused financial services company with 2,900 employees, servicing over $26 billion of assets, including approximately $12.4 billion in managed assets and approximately $13.6 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. 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: obtaining the ratings by the named rating agencies; receivables volume; prepayment rates; and the effects of governmental regulation. Additional risks that may affect future performance are detailed in the Company's filings with the SEC. |
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