First Alliance Completes $70 Million Securitization.IRVINE, Calif.--(BUSINESS WIRE)--Sept. 16, 1996--First Alliance Corporation (Nasdaq: FACO FACO Final Assembly and Check OutFACO Fellow, American Chiropractic Orthopedists FACO Fabrication, Assembly & Check Out ) announced today that it has completed its third 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. through its wholly-owned subsidiary, First Alliance Mortgage Company. This transaction totaled $70 million and is backed by fixed and adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. home equity loans. The securitization has a two-class structure and was managed by Prudential Securities Inc. The certificates were rated triple-A 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. Inc. and Standard & Poors Rating Service. The $33.5 million Class A-1 bond is backed by fixed rate loans and priced at a spread of 102 basis points more than the 6.875% Treasury note due in March of 2000. The $36.5 million Class A-2 bond is backed by adjustable rate loans and priced at 32 basis points over the one-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). . First Alliance Mortgage Company is the Sponsor and Servicer for this transaction. First Alliance is a consumer finance company with headquarters in Irvine, California. The Company originates, purchases, sells and services non-conventional mortgages through 20 retail branch offices in 13 states in the United States and one retail branch office in the United Kingdom. CONTACT: First Alliance Corp. Mark Mason, 714/224-8403 or Morgen-Walke Associates, Inc. Doug Sherk/Jenifer Kirtland/Jon Squire, 415/296-7383 Elissa Grabowski/Emily Dupree, 212/850-5600 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion