Conseco 2000-4 $1.2B Manufactured Hsg Contract P-T Rtd By Fitch.Business Editors NEW YORK--(BUSINESS WIRE)--Aug. 11, 2000 Fitch fitch: see polecat. has rated Conseco Finance Corp.'s (Conseco) manufactured housing Manufactured housing (also known as prefab housing) is a type of housing unit that is largely assembled in factories and then transported to sites of use. In the United States, the term "manufactured home" specifically refers to a house built entirely in a protected contract senior/subordinate pass-through certificates Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size Series 2000-4 $1.05 billion class A-1 through A-6 certificates 'AAA'. Other classes are rated as follows: $62.5 million class M-1 certificates, 'AA;' $50 million class M-2 certificates, 'A' and $37.5 million class B-1 certificates, 'BBB.' The ratings for classes A, M-1, M-2 and B-1 are based upon the quality of the manufactured housing contracts, the respective levels of credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing , the integrity of the legal and financial structures and Conseco servicing capabilities. Credit enhancement for the class A certificates reflects the credit support provided by the 15.5% subordinate classes M-1, M-2, B-1 and B-2. Support for class M-1 is provided by the 10.5% classes M-2, B-1 and B-2. Support for the class M-2 is provided by the 6.5% classes B-1 and B-2. Support for the B-1 is provided by the 3.5% class B-2 certificates. Support for the class B-2 certificates is provided by Conseco under a limited corporate guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. . The class B-2 certificates are not being offered at this time. All of the certificates benefit from monthly excess cash and overcollateralization Overcollateralization The posting of more collateral than is needed to obtain financing. Notes: This is often done in order to get a better debt rating from a credit rating agency. See also: Collateral, Overcapitalization to absorb losses. Overcollateralization is initially 0.5% of the total cutoff pool balance plus the additional contracts and will grow to 2.00%. Fitch's analysis is based on an initial contract pool of $883,060,222, which represents 70.64% of the total pool. Approximately $366.9 million of additional contracts will be deposited into the trust either by the closing date or by Oct. 30, 2000. Conseco represents that the characteristics of the additional contracts will not deviate beyond Fitch's acceptable level of tolerance. Fitch monitors the characteristics of the additional contracts to ensure conformity to the representations made by Conseco. The $883 million initial pool consists of fixed-rate manufactured housing contracts secured by new (approximately 66%) and used (approximately 34%) manufactured homes. The pool has a weighted average remaining term to maturity of roughly 323 months, and is geographically diverse with concentrations in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. (7.61%), Texas (7.42%), Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). (6.28%), Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). (5.31%) and California (5.18%). No other state represents more than 5% of the pool. Approximately 49.72% of the pool balance consist of land-and-home contracts. Interest is paid first to the class A certificates followed by interest to the class M-1, M-2 and B-1 certificates. Next, principal is distributed sequentially to the class A, M-1, M-2 and B-1 certificates. Finally, interest then principal is paid to class B-2. Payments of principal will not be distributed to class M-1 until the class A Principal Balance has been reduced to zero or the M-1 Distribution Test has been satisfied. Payments of principal will not be distributed to class M-2 until the class A and M-1 Principal Balance has been reduced to zero or the M-2 Distribution Test has been satisfied. Payments of principal will not be distributed to class B-1 until the class A, class M-1, class M-2 Principal Balances have been reduced to zero or the class B Distribution Test has been satisfied. Class B-2 will not receive any principal until class A, class M-1, class M-2 and class B-1 have been repaid in full. The servicing fee for this transaction will be 0.50% initially. In the event that servicing is transferred to a party other than Conseco, an additional servicing fee of 0.50% will be paid to that party. The additional servicing fee will be paid after all of the bonds have been paid their interest and principal. The contracts were either originated directly by Conseco or originated by an approved dealer and purchased by Conseco. Conseco will perform all servicing functions on the receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed . Fitch is an international rating agency that provides global capital market investors with the highest quality ratings and research. Dual headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and London with a major office in Chicago, Fitch rates entities in 75 countries and has some 1,100 employees in more than 40 local offices worldwide. The agency, which is a combination of Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals and Duff & Phelps Credit Rating Co., provides ratings for financial institutions, insurance, corporates, structured finance, sovereigns and public finance markets worldwide. |
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