Delta Funding Sells $400 Million of Asset-Backed Securities.WOODBURY, N.Y.--(BUSINESS WIRE)--Nov. 24, 1997-- Represents 90% Increase Over 1996 Fourth Quarter 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. Delta Funding Corporation, a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Delta Financial Corporation (NYSE NYSE See: New York Stock Exchange : DFC DFC - A dataflow language. ["Data Flow Language DFC: Design and Implementation", S. Toshio et al, Systems and Computers in Japan, 20(6):1- 10 (Jun 1989)]. ), sold $400 million of closed-end home equity loan-backed securities priced in twelve parts by underwriters led by Donaldson, Lufkin & Jenrette Securities Corporation and co-managed by Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. Inc. and Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. , Dean Witter Dean Witter may refer to:
Today's $400 million securitization highlights the continued expansion of Delta's home equity loan production compared to the year-ago fourth quarter securitization which totaled $210 million as well as the 1997 first, second and third quarter securitization transactions which amounted to $235 million, $260 million and $340 million, respectively. -0- Common terms: Seller: Delta Funding Corporation Trust: Delta Funding Home Equity Loan Trust 1997-4 Structure: Senior/Subordinated Settlement: December 11, 1997 Payable: Monthly beginning January 25, 1998 Class: A-1F A-2F A-3F Amount (millions): $168.500 $26.625 $17.500 Coupon: 1M LIBOR+15 6.67% 6.71% Price: 100-00 99-31+ 100-00 Yield: LIBOR+15 6.627% 6.698% Spread (basis points): 15 80 91 Treasury: 1M LIBOR 6 1/2 8/01 5 3/4 10/02 Average Life (years): 1.52 3.67 4.99 Moody's/Fitch: Aaa/AAA Aaa/AAA Aaa/AAA Class: M-2F B-1F A-1A Amount (millions): $14.963 $11.025 $67.150 Coupon: 7.17% 7.51% 1M LIBOR+22 Price: 99-31 100-00 100-00 Yield: 7.181% 7.515% LIBOR+22 Spread (basis points): 135 168 22 Treasury: 5 7/8 2/04 5 3/4% 8/03 1M LIBOR Average Life (years): 6.03 5.64 2.78 Moody's/Fitch: A2/A Baa3/BBB Aaa/AAA -0- Class: A-4F A-5F NAS M-1F Amount (millions): $25.200 $31.500 $19.687 Coupon: 7.07% 6.67% 6.97% Price: 99-31+ 99-30+ 99-31 Yield: 7.107% 6.685% 6.981% Spread (basis points): 122 83 115 Treasury: 6 5/8 5/07 7 1/4 8/04 5 7/8 2/04 Average Life (years): 9.98 6.65 6.13 Moody's/Fitch: Aaa/AAA Aaa/AAA Aa2/AA Class: M-1A M-2A B-1A Amount (millions): $7.650 $5.525 $4.675 Coupon: 1M LIBOR+48 1M LIBOR+68 1M LIBOR+115 Price: 100-00 100-00 100-00 Yield: LIBOR+48 LIBOR+68 LIBOR+115 Spread (basis points): 48 68 115 Treasury: 1M LIBOR 1M LIBOR 1M LIBOR Average Life (years): 5.56 5.45 5.08 Moody's/Fitch: Aa2AA A2/A Baa3/BBB -0- Hugh Miller Hugh Miller (1802 – 1856) was a self-taught Scottish geologist and writer and an evangelical Christian. Born in Cromarty, he had an ordinary parish school education, but soon showed a remarkable love of reading and power of story-telling. , President and Chief Executive Officer of Delta Financial, commented, "We are of course pleased that continued growth in our home-equity loan Home-Equity Loan A consumer loan secured by a second mortgage, allowing home owners to borrow against their equity in the home. The loan is based on the difference between the homeowner's equity and the home's current market value. production, across all geographic regions and all three production channels -- broker, retail and correspondent -- has enabled Delta to complete the Company's largest securitization to date." Founded in 1982, Delta Financial Corporation is a Woodbury, NY-based specialty consumer finance company engaged in originating, acquiring, selling and servicing non-conforming home equity loans. Delta's loans are primarily secured by first mortgages on one- to four-family residential properties. The Company originates home equity loans primarily in 22 states through a network of approximately 1,000 brokers and correspondents as well as through eleven Fidelity Mortgage retail offices in five states. Certain statements contained in this press release, which are not historical fact, may be deemed to be forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. under federal securities laws. There are many important factors that could cause Delta Financial Corporation and its subsidiaries' actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general economic conditions, including interest rate risk, future residential real estate values, regulatory changes (legislative or otherwise) affecting the real estate market and mortgage lending activities, competition, demand for Delta Financial Corporation and its subsidiaries' services, availability of funding, loan prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. rates, delinquency delinquency Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported. and default rates, changes in factors influencing the loan securitization market and other risks identified in Delta Financial Corporation's Securities and Exchange Commission filings. This news release shall not constitute an offer to sell or the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such state. CONTACT: Marty Cohen cohen or kohen (Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male. Director of Investor Relations Investor relations The process by which the corporation communicates with its investors. Delta Financial Corporation 516/364-8500 http://www.deltafinancial.com or David C. Collins, Kathleen M. Holmes Jaffoni & Collins Incorporated 212/835-8500 or collins@jcir.com |
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