ContiMortgage Prices $1.75 Billion Home Equity Loans ABS.NEW YORK--(BUSINESS WIRE)--June 10, 1998--ContiMortgage Corporation, a subsidiary of ContiFinancial Corporation (NYSE NYSE See: New York Stock Exchange :CFN CFN Center for Functional Nanomaterials CFN Companhia Ferroviaria do Nordeste (Brazil) CFN Commercial Fueling Network CFN Conselho Federal de Nutricionistas (Brazil) ), has priced a $1.75 billion Home Equity Loan Asset Backed Security issue. This issue, ContiMortgage Home Equity Loan Trust 1998-2, is structured using a combination of a subordinated class and a 100% surety wrap credit enhancement Credit Enhancement A method whereby a company attempts to improve its debt or credit worthiness. Notes: Credit enhancements take many different forms. An example of a credit enhancement would be conversion rights added on to a debt instrument in order to lower the issuing .
The bonds will be issued by the Trust and will include 12 tranches as
follows:
Class Amount Yield S&P/Moody's/Fitch
($ millions)
A-1 (2a-7) $114.0 5.64875% A-1+/P-1/F-1+
A-2-A (PAC) $175.0 L+3 AAA/Aaa/AAA
A-2-F (PAC) $250.0 5.987% AAA/Aaa/AAA
A-3 (PAC) $275.0 6.088% AAA/Aaa/AAA
A-4 (PAC) $185.0 6.182% AAA/Aaa/AAA
A-5 (PAC) $ 90.0 6.299% AAA/Aaa/AAA
A-6 (PAC) $ 97.0 6.393% AAA/Aaa/AAA
A-7 (PAC) $100.6 6.617% AAA/Aaa/AAA
A-8 $235.0 L+25 AAA/Aaa/AAA
A-9 $158.4 L+14 AAA/Aaa/AAA
A-10 $197.6 N/A AAA/Aaa/AAA
B $ 70.0 7.798% BBB-/Baa3/BBB
The offering was lead by Merrill Lynch & Co., with Bear, Stearns & Co. Inc.: ContiFinancial Services Corporation; 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. ; Greenwich Capital Markets, Inc.; Morgan Stanley & Co. Incorporated and Nomura Securities Corp. co-managing the issue. ContiFinancial Corporation is a consumer and commercial finance company with headquarters in 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 approximately 3,000 employees nationwide. The Company, through ContiMortgage Corporation and other subsidiaries, is a leading originator, securitizer, and servicer of home equity loans made to borrowers whose needs may not be met by traditional financial institutions. In addition, through ContiTrade Services L.L.C. and its ContiMAP(R) conduit, the Company finances a wide range of commercial real estate. Through ContiTrade Services L.L.C., the Company also provides financing and 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. services and, through ContiFinancial Services Corporation, bond placement services, to subsidiaries and other originators of a broad range of loans, leases and receivables, including loans for a variety of commercial real estate property types; home equity loans; home improvement loans; prime, sub-prime and non-prime auto loans; equipment leases; charged-off consumer debt; franchisee loans and time-share loans. CONTACT: ContiFinancial Corporation, 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 Jerome M. Perelson, Senior Vice President 212/207-5402 or Edelman Financial, New York Allison H. Wey n. 1. Way; road; path. v. t. & i. 1. To weigh. n. 1. A certain measure of weight. , Senior Vice President 212/704-4424 |
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