People’s today announced that People’s Bank Credit Card Master Trust has priced $500 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 1997-2, includes $425 million of Class A (senior) floating rate asset-backed certificates, $33.75 million of Class B (subordinate) floating rate asset-backed certificates and a $41.25 million privately placed floating rate collateral invested amount.The Class A certificates accrue interest at 13 basis points over the one month London Interbank Offered Rate (LIBOR). The Class B certificates accrue interest at 33 basis points over the one month LIBOR. Both the Class A and Class B certificates were priced at par. J.P. Morgan & Co. was the lead manager of the transaction; Goldman Sachs & Co., Lehman Brothers Inc., and Salomon Brothers Inc., were co-managers. The transaction is scheduled to close September 24, 1997.
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, the largest independent bank headquartered in Connecticut, has assets of approximately $7.9 billion and 110 branches statewide. Based in Bridgeport, the 155-year-old institution offers diversified consumer and commercial financial services as well as investment services provided by its wholly owned subsidiary, People’s Securities, Inc. People’s is the leading mortgage lender in the state and the 26th largest issuer nationally of Visa and MasterCard credit cards.Details