Union Acceptance Sells $150 Million Receivables

    INDIANAPOLIS--June 25, 2001--Union Acceptance Corporation ("UAC") today announced that its subsidiary, UAC Securitization Corporation ("UACSC"), has sold $150 million in receivables to Special Purpose Accounts Receivable Cooperative Corp. ("SPARC"), a commercial paper conduit facility sponsored by CIBC World Markets Corp. The transaction is wrapped by a financial guaranty policy issued by MBIA Insurance Corporation, a subsidiary of MBIA Inc. . SPARC purchased a $150 million note backed by a pool of prime automobile receivables with proceeds from the issuance of commercial paper. The pool has a weighted average coupon of 12.61%, and the fixed rate on the note is 5.12%.
    "The CIBC facility continues to serve as a viable alternative to the public asset-backed market," commented Rick Brown, Chief Financial Officer. "We do expect to return to the public asset-backed market in the future; however, our analysis indicated that for this quarter, financing through the commercial paper conduit was more profitable and efficient."
    The commercial paper facility with CIBC World Markets is a 364-day, $550 million facility that was initially closed in August 1999. The facility's capacity was increased by $100 million to $550 million in June 2001.