S&P Asgns Prelim Rtg in Box Clever's Receivables Deal.Business Editors PARIS--(BUSINESS WIRE)--Standard & Poor's June 14, 2002--Standard & Poor's said today that it assigned its preliminary 'BBB' rating to the class B floating-rate notes Floating-rate note (FRN) Note whose interest payment varies with short-term interest rates. floating-rate note An unsecured debt issue with an interest rate that is reset at specified intervals (usually every six months) according to a to be issued by Home Technology Receivables (No. 1) PLC, a special-purpose entity Special-Purpose Entity A financing technique in which a company decreases its risk by creating separate partnerships, rather than subsidiaries, for certain holdings and solicits outside investors to take on the risk. (SPE SPE - Software Practice and Experience ) (see list below). The transaction involves the 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 receivables principally from lease and hire-purchase contracts entered into in respect of televisions, VCRs, and other electronic consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and and equipment. Receivables also arise from the insurance, warranty agreement, maintenance service commissions, and arrangement fees for such goods and equipment. The assets are located throughout the U.K. The receivables also act as security for a loan granted by the issuer to Home Technology Finance Ltd., a company within the Box Clever Box Clever is an electronics rental chain created in 2000 by the merger of Radio Rentals and Granada Rentals. Now only online. External links
"This securitization is essentially the refinancing of certain credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities granted to Box Clever in relation to an acquisition debt," said Herve-Pierre Flammier, a director with Standard & Poor's Structured Finance group in Paris. "These bridge facilities will be partially redeemed with proceeds of the notes issuance." The preliminary rating on the class B notes reflects the strength of the collateral supporting the obligations of the issuer, the ratings on the transaction participants, and the soundness of the legal structure. The class A notes in this transaction are not rated by Standard & Poor's but have been reviewed in the context of the analysis of the transaction as a whole. A copy of Standard & Poor's complete presale report for this transaction is available on RatingsDirect, Standard & Poor's Web-based credit analysis system, at www.ratingsdirect.com. The report is also available on Standard & Poor's Ratings Services Web site at www.standardandpoors.com. Under Presale Reports, select Structured Finance, then Asset-Backed Securities. Home Technology Receivables (No. 1) PLC GBP747.6 Million Floating-Rate Notes Class Rating Amount (GBP) A N.R. 658,121,176 B BBB 89,464,043 N.R.--not rated. ANALYTICAL E-MAIL ADDRESSES herve-pierre_flammier@standardandpoors.com cian_chandler@standardandpoors.com Copyright 2002, Standard & Poor's Ratings Services |
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