People’s Bank announced Tuesday that People’s Bank Credit Card Master Trust has priced $400 million of five-year floating rate credit card asset-backed securities.
The securitization transaction features two classes of publicly traded securities (Class A and Class B) and a separate privately placed collateral invested amount.
The transaction, Series 1998-1, includes $343 million of Class A (senior) floating rate asset-backed certificates, $27 million of Class B (subordinate) floating rate asset-backed certificates and a $30 million privately placed floating rate collateral invested amount.
The Class A certificates accrue interest at 14 basis points over the one month London Interbank Offered Rate (LIBOR). The Class B certificates accrue interest at 34 basis points over the one month LIBOR. Both the Class A and Class B certificates were priced at par. Goldman Sachs & Co. was the lead manager of the transaction; J.P. Morgan & Co., Lehman Brothers, and Salomon Smith Barney were co-managers. The transaction is scheduled to close April 1, 1998.
The offering of these securities will be made only by means of a prospectus. This press release does not constitute an offer to sell or the solicitation 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 laws of any such state.
People’s Bank is a 156-year-old financial services institution offering consumer and commercial banking as well as asset management, investment and leasing services. With managed assets of more than $10.8 billion and 128 branches, it is the largest independent bank in Connecticut. Based in Bridgeport, People’s leads the state in mortgage lending and Savings Bank Life Insurance sales. An international issuer of bank credit cards, People’s ranks as the 24th largest issuer nationally of Visa and MasterCard.
People’s Securities, Inc. in Bridgeport, People’s Capital and Leasing Corp. in Waterbury and Olson Mobeck & Associates in Rocky Hill and Litchfield, are subsidiaries of People’s Bank.Details