Compass Bancshares Completes $379.4 Million Securitization of Automobile Loans.BIRMINGHAM, Ala.--(BUSINESS WIRE)--July 1, 1998--Compass Bancshares Inc. (NASDAQ/NMS:CBSS CBSS Council of Baltic Sea States CBSS Craft and Boat Support System CBSS Coastal Border Surveillance System (MSSC) CBSS Closed-Breach Scavenging System (compressed air system for removing smoke from tank gun tubes) ) announced today that it has completed its initial 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. of automobile loans owned and originated by its subsidiary banks. Compass Auto Receivables Trust 1998-A, a trust established for the securitization, issued notes totaling approximately $379.4 million as highlighted below. Class Size Rating Average Life Coupon ----- ---- ------ ------------ ------ A-1 $127,235,000 P-1/A-1+ 0.35 5.659% A-2 $ 81,700,000 Aaa/AAA 1.00 5.709% A -3 $170,445,000 Aaa/AAA 2.25 5.900% The notes were rated by both 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 & Poor's Corp. and sold through underwriters Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. Corp. and Goldman, Sachs & Co. Additionally, a separate class of certificates totaling approximately $22.1 million were issued as part of the transaction and retained by a subsidiary of Compass Bancshares Compass Bancshares, Inc. is a privately held company based in Birmingham, Alabama. Its subsidiary, Compass Bank, is a Southwestern financial holding company with $47 billion in assets and 417 full-service banking offices in Alabama, Arizona, Colorado, Florida, New Mexico, and Texas. . Garrett R. Hegel, Compass Bancshares chief financial officer, noted that this was Compass' firstsecuritization and that the transaction went as planned. "We believe this is an excellent alternative method of financing Compass' solid asset growth. We look forward to periodically reviewing the opportunities offered by securitization markets as we continue optimizing how we deploy our shareholders' capital," Hegel said. Compass Bancshares is a $14.5 billion multi-bank holding company with 246 banking offices in Texas (116), Alabama (88) and Florida (42). Shares of Compass' common stock are traded through in the 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 national market system under the symbol CBSS.
CONTACT: Compass Bancshares, Birmingham
Terrell Graves, 205/933-3331 (Investor Relations)
or
Ellen Laden, 205/933-3554 (Media & Public Relations)
http://www.compassweb.com
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