ContiMortgage prices $900 million of home equity loan ABS; Their largest ever.NEW YORK--(BUSINESS WIRE)--Nov. 15, 1996--ContiMortgage Corporation, a unit 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 $900 million Asset Backed Security issue, backed by home equity loans. This represents the largest issue ever for ContiMortgage. The bonds were issued through ContiMortgage Home Equity Loan Trust 1996-4 and included ten tranches. The first tranche, (Class A-1) with an expected final maturity of June 15, 1998, pays a floating rate of interest, based on LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 4 basis points. The next eight tranches (Class A-2 to A-8 and Class A-L) pay interest at fixed rates yielding from 6.09% to 7.29% and the last tranche (A-10) pays a floating rate of interest, based on LIBOR plus 24 basis points. All classes of certificates were rated AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. by Moody's, S&P and Fitch based on a 100% insurance guarantee provided by MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association Insurance Corporation. The offering was led by Bear Stearns, with Merrill Lynch & Co., CS First Boston, Greenwich Capital Markets, Inc., Morgan Stanley, Lehman Brothers and ContiFinancial Services Corporation 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. . The Company is a major originator and servicer of home equity loans in the U.S. In addition, it provides financing, securitization and, through its wholly-owned subsidiary ContiFinancial Services Corporation, bond placement services to originators of a broad range of loans, leases and receivables, including adjustable rate mortgages, sub-prime auto loans, home improvement loans, equipment leases and multifamily and other commercial mortgage loans. CONTACT: ContiFinancial Corporation, New York John Banu, Senior Vice President, 212/207-2840 or Edelman Financial, New York Joseph Kist, 212/704-8239 or 212/704-8172 |
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