EMERGENT GROUP COMPLETES $121 MILLION MORTGAGE SECURITIZATION.GREENVILLE, S.C.--(BUSINESS WIRE)--June 26, 1997--Emergent Group, Inc. (Nasdaq/NM:EMER) today announced the completion of a $121 million 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 its mortgage loans. Emergent Group issued five classes of home equity loan certificates, Series 1997-2, each 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 Standard & Poor's Rating Services and Aaa by Moody's Investors Service Moody's Investors Service A leading global credit rating, research and risk analysis firm. Moody's Investors Service A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. . According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Kevin J. Mast, Vice President, Chief Financial Officer and Treasurer of Emergent Group, the five- tranche structure consists of four sequential pay structures and one non-accelerated senior bond. The average pricing on the bonds was 7.06%, or 78 basis points over the comparable treasury bond. Credit enhancements for the certificates include a guaranty provided by Financial Security Assurance, Inc., a monoline insurance Definition Monoline insurers (also referred to as "monoline insurance companies" or simply "monolines") leverage their financial strength ratings (credit ratings) to guarantee the timely repayment of bond principal and interest when an issuer defaults. company which guarantees payments of principal and interest. The home equity certificates are collateralized by a pool of fixed-rate, closed-end, home equity mortgage loans secured by first liens on one- to four-family dwellings. The average outstanding loan balance is $63,190, the weighted average coupon Weighted average Coupon The weighted average of the gross interest rates of mortgages underlying a pool as of the pool issue date; the balance of each mortgage is used as the weighting factor. is 10.8%, and the weighted average remaining term is 199 months. Geographically, the loans are located in 28 states. The deal was underwritten by Prudential Securities Incorporated, with First Union National Bank serving as the Trustee of the trust (qualified as a real estate investment conduit), which was formed to facilitate the transaction. Emergent Group, Inc. is a diversified financial services company which specializes in sub-prime first and second lien residential mortgage loans; loans to small businesses, partially guaranteed by the U.S. Small Business Administration; asset-based loans to small businesses secured by inventory and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying ; the management of a venture capital fund and a mezzanine-level fund which lend to small businesses; and sub-prime automobile loans. Emergent currently has 927 employees and operates in 24 states. CONTACT: Emergent Group, Inc., Greenville Kevin J. Mast, 864/235-8056 Robert S. Davis, 864/235-8056 |
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