Advanta Prices Securitization Backed by Small Business Credit Card Receivables.Business Editors 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 priced a $300 million business credit card securitization, backed by receivables in revolving business credit card accounts originated by Advanta Bank Corp. The transaction is expected to close on or about July 18, 2002. Advanta Business Card Master Trust Series 2002-A consists of receivables in our 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. The portfolio backs four classes of three year, floating rate notes: $240 million of Class A Notes, $27.75 million of Class B Notes, $21.75 million of Class C Notes and $10.5 million of Class D Notes. Barclays Capital is the lead manager and Morgan Stanley Dean Witter is 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 publicly offered notes will be 36 basis points over one-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). . It is anticipated that the notes will receive ratings from Standard & Poor's and Moody's. Advanta will retain the servicing and customer relationships of the revolving business credit card accounts. Advanta is a highly focused financial services company which has been providing innovative financial solutions since 1951. Advanta leverages 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. Over the past five years, it has used these distinctive capabilities to become one of the nation's largest issuers of MasterCard business credit cards to small businesses. Learn more about Advanta at www.advanta.com. 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; attrition rates; the effects of governmental regulation; and adverse market conditions. Additional risks that may affect future performance are detailed in the Company's filings with the SEC. |
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