MBNA Corporation announced Wednesday that MBNA America Bank, N.A., its wholly owned subsidiary, priced $750 million of five-year credit card asset backed securities. The securitization from the MBNA Master Credit Card Trust II featured two classes of publicly traded securities (Class A and Class B).
The transaction, Series 1998-C, included $637.5 million of Class A (Senior) floating rate asset backed certificates and $56.25 million of Class B (Subordinate) floating rate asset backed certificates. The 5.0 year Class A certificates accrue interest at 8 basis points over the one month London Interbank Offered Rate (“LIBOR”). The 5.0 year Class B certificates accrue interest at 25 basis points over the one month LIBOR. Both the Class A and Class B certificates were priced at par. The transaction, which is scheduled to close June 24, 1998, was lead managed by Salomon Smith Barney and co-managed by Bear, Stearns & Co. Inc., Credit Suisse First Boston, First Chicago Capital Markets, Inc., Lehman Brothers, and Merrill Lynch & Co.
MBNA Corporation, a bank holding company and parent of MBNA America Bank, N.A., a national bank, has $50.2 billion in managed loans. MBNA, the largest independent credit card lender in the world, also provides retail deposit, consumer loan, and insurance products.Details