Citicorp Closes 12.5 Billion Yen Denominated Royalty Fee Securitization for The Southland Corporation.

NEW YORK--(BUSINESS WIRE)--April 30, 1998--Citicorp Securities, Inc. today announced the closing of a 12.5 billion yen, asset-backed securitization for The Southland Corporation which monetizes future yen-denominated royalty income streams generated by an area license agreement with 7-Eleven Japan Co., Ltd., as licensee.

Citicorp served as Lead Arranger and Agent on the transaction, structuring the securitization, and leading the global distribution from its Citibank, N.A. Tokyo desk. The bank group consisted of Co-Agents The Sakura Bank Limited, CIBC Wood Gundy and The Asahi Bank; and The Fuji Bank , Limited as Lead Manager.

"This structure provides significant value to Southland in two ways," noted Frank Cavallo, Vice President of Citicorp Securities, Inc. "First," he said, "Southland is able to lock in a fixed yen interest rate at a point in time when yen interest rates are approaching all-time low levels. Second, the transaction serves as a long-term foreign exchange hedge of Southland's future yen revenue flows."

Citibank was named the Top Bank in Securitization for the second consecutive year by Corporate Finance magazine in their 1997 Poll of Corporate's Top Banks, and the Best Underwriter of Asset-Backed Debt for the fourth consecutive year in Euromoney magazine's 1997 Awards for Excellence competition.

CONTACT: Mary M. Regan, 212/559-4225