Credit Store Completes Its Third Credit Card Securitization.SIOUX FALLS Sioux Falls, city (1990 pop. 100,814), seat of Minnehaha co., SE S.Dak., on the Big Sioux River; settled 1856, inc. as a village 1877, as a city 1883. Settlers abandoned the site in 1862 because of Native American raids, but with the establishment (1865) of Fort , S.D.--(BUSINESS WIRE)--June 10, 1999-- The Credit Store, Inc. (EBB:PLCR) announced that it completed its third 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 performing credit card receivables. The transaction involved the sale of approximately $6.2 million in seasoned credit card receivables to a wholly-owned qualified special-purpose corporation, TSC TSC Thestreet.com (stock symbol) TSC Time Stamp Counter TSC Tuberous Sclerosis Complex TSC Tractor Supply Company TSC Terrorist Screening Center (Department of Homeland Security) Funding III, Inc., that was established for this transaction. The receivables were fully current and had been seasoned in excess of eight months. This transaction was funded, in part, by a $4.0 million term loan from Miller & Schroeder Investments Corporation of Minneapolis, MN. The excess of the purchase price for the receivables over the cash proceeds will be retained by The Credit Store as a capital contribution to TCS (Transportation Control System) A widely used integrated information system for railroad transportation developed by the Missouri Pacific Railroad Company in the late 1960s and early 1970s. It was later implemented by Union Pacific when the companies merged. Funding III. The Credit Store will continue to service the credit-card receivables sold to TSC Funding III on a fee basis. The Credit Store completed similar securitizations in Sept. and Dec. 1998, for approximately $6.5 million and $7.8 million in credit card receivables respectively. Martin J. Burke III, chairman and chief executive officer commented: "We are pleased with this, our third transaction, which demonstrates a growing market for our performing credit card assets. Our first two securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. transactions continue to perform well within modeling parameters. We believe we are demonstrating the continued saliency sa·li·ence also sa·li·en·cy n. pl. sa·li·en·ces also sa·li·en·cies 1. The quality or condition of being salient. 2. A pronounced feature or part; a highlight. Noun 1. of our business plan and are well on our way defining a new niche in the consumer credit marketplace." The Credit Store, Inc. is a nationwide financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company engaged in the acquisition and collection of non-performing consumer receivables and the origination and servicing of credit cards. The Company acquires portfolios of non-performing consumer debt at substantial discounts, and then uses its direct marketing expertise to contact and negotiate settlements with consumers, most of the time placing settlement on new unsecured credit cards offered through The Credit Store. This press release contains forward-looking statements that involves uncertainties, including, but not limited to, risks, uncertainties and timing related to financing, conversions and securitizations, future business costs and savings, the competitive environment and other risks. Future trends and results may differ materially from disclosures contained in this release. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion