Capital Asset Announces $285.4 Million Securitization Largest Tax Lien Transaction Ever.PALM BEACH GARDENS, Fla.--(BUSINESS WIRE)--Dec. 23, 1997-- Capital Asset Research Corporation, the nation's largest purchaser and servicer of tax liens, announced today that the Company recently completed a $285.4 million offering of asset-backed securities. The private placement transaction, Series 1997-A, is the largest tax lien 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. to date. The issue is rated "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. " (Triple-A) by Standard & Poor's Rating Services and Duff & Phelps Credit Rating Co., and "Aaa" by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. , Inc., and was guaranteed 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 . "The overall positive reaction to this offering was as we expected with the `AAA' ratings, high quality of the collateral, the financial guarantee, and our servicing capabilities," said Richard A. Heitmeyer, President and Chief Executive Officer of Capital Asset. "As part of our strategy of utilizing diverse sources of financing, we anticipate an ongoing use of the securitization market. Capital Asset's diverse origination strategies assure a growing and continuing source of liens for future securitization transactions," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Heitmeyer. "Proceeds from this offering will be used to finance the Company's continued growth and planned expansion into new markets in partnership with municipalities to enhance the efficiency of the funding and collection of municipal receivables." This securitization differs from municipal securitization transactions to the extent that Capital Asset retains responsibility for servicing the collateralized portfolio. Previous municipal securitizations have required the use and expense of an outside servicer. By retaining the risk and responsibility for servicing, Capital Asset is able to take advantage of its servicing experience and knowledge of the portfolio. The net effect is a positive impact on the Company's borrowing costs. Capital Asset is the industry leader with a demonstrated ability to effectively purchase and service diverse pools of tax liens and other secured municipal receivables. The Company has managed its own $1.5 billion tax lien pool and has serviced other securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. pools for large cities such as New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. and Philadelphia. Based in Palm Beach Gardens, Florida Palm Beach Gardens is a city in Palm Beach County in the U.S. state of Florida. The city is in the center of a rapidly-developing area north of West Palm Beach in the northern part of the county and the South Florida metropolitan area. , Capital Asset purchases and services tax liens from over 650 cities and counties in 14 states. The Company also operates a real estate division that is actively involved in the conversion of foreclosure properties into a variety of affordable housing initiatives and other inner-city revitalization projects. The Company's equity partners, MBIA MuniServices, a subsidiary of MBIA Inc., and Koch Industries Koch Industries, Inc. (pronounced "koke") is a private corporation based in Wichita, Kansas. According to Forbes Magazine, it is the largest privately owned company in the world by revenue (surpassing Cargill in 2005 with the acquisition of Georgia-Pacific), with subsidiaries , are both highly respected industry leaders. MBIA, a S&P 500 company, is the nation's largest financial guarantor and is a leading provider of investment management and municipal services. Koch Industries is the second largest privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. in the nation with holdings in petroleum, chemicals, agriculture, real estate and municipal leasing. The bonds are being offered in a private placement to a limited number of institutional investors and will not be registered under the Securities Act or any state securities laws. This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. CONTACT: Capital Asset Research Corporation, Palm Beach Gardens Daniel McGilvery, 561/515-1157 Website: http://www.carc.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion