Case Credit prices largest ABS transaction.RACINE, Wis.--(BUSINESS WIRE)--Sept. 12, 1996--Case Credit (NYSE NYSE See: New York Stock Exchange :CSE (Certified Systems Engineer) See Microsoft certification. ) today announced the pricing of an $850 million asset-backed 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. by its subsidiary, Case Receivables II Inc., the unit's largest transaction to date. Including today's announcement Case Credit will have issued $1.475 billion of public asset-backed securities this year, compared with $1.25 billion in 1995, an increase of 18 percent. The issue includes $34 million of 6.95% asset-backed certificates and three classes of public notes: $125 million of 5.5625% Class A-1 notes; $362 million of 6.25% Class A-2 notes; and $329 million of 6.65% Class A-3 notes. The structure also includes a private offering of up to $100 million Class B notes in addition to the publicly offered amount of $850 million. This novel structural enhancement provides flexibility to sell additional receivables as the portfolio continues to grow. The transaction is contingent upon the Class A-1 notes being rated "P-1/A-1+", Class A-2 and Class A-3 notes being rated "Aaa/AAA", and the certificates being rated "A3/A" 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. and Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index . The notes and certificates are expected to be rated prior to the closing of the offering, which is tentatively scheduled for September 19, 1996. Past Case Credit U.S. ABS offerings have received similar ratings. The securities are backed by U.S. agricultural and construction equipment retail receivables contracts originated through Case dealerships. 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. for the notes and certificates is Merrill Lynch & Co. Co-Managers for the notes are BA Securities, Inc., CS First Boston, First Chicago Capital Markets, Inc., J.P. Morgan & Co. and Nationsbanc Capital Markets, Inc. Co-Manager for the certificates is CS First Boston. Case Credit has been active in the ABS marketplace since 1992, with offerings totaling $5.8 billion. Case Credit uses ABS transactions to increase its range of financing options and to broaden its access to traditional capital markets. Case Credit will apply the proceeds from this sale to repay outstanding debt and to fund the related receivables. Case Corporation, with net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of nearly $5 billion in 1995, is headquartered in Racine, Wisconsin, and is a leading worldwide designer, manufacturer and distributor of agricultural and construction equipment. The company's products are sold through a network of approximately 4,100 independent dealers and distributors in more than 150 countries. Case Credit Corporation, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of the company, services a portfolio of $4 billion of agricultural and construction equipment financing and leasing contracts. CONTACT: Case Corporation, Racine Ellen Robinson, 414/636-5708 Sandra Lasch, 414/636-6473 |
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