WFS Financial Announces Pricing of $300 Million Subordinated Capital Debentures

    IRVINE, Calif.--April 29, 2002--WFS Financial Inc today announced that its parent company, Western Financial Bank priced a $300 million offering of subordinated capital debentures.
    The debentures were priced at 99.518% to par, will have a coupon of 9.625% and are expected to have a yield to maturity of 9.70%. The debentures will mature on May 15, 2012.
    The transaction is expected to close on Friday, May 3, 2002. The notes were assigned a BB- rating by Standard & Poor's, B1 by Moody's Investor Service and BB- by Fitch Ratings. The offering was lead managed by Credit Suisse First Boston and co-managed by Bear, Stearns & Co. Inc. and RBC Capital Markets.
    WFS Financial announced that related to this offering it plans to enter into a $300 million borrowing arrangement with its parent with a coupon of 9.70% in order to utilize the proceeds from the debentures to fund its growth.
    "This transaction was well received and significantly oversubscribed reflecting noteholders confidence in the company," said Lee A. Whatcott, senior executive vice president and chief financial officer of WFS Financial.
    "As a result, we increased the size of the offering from the original filing of $200 million to $300 million. These debentures enhance the total regulatory capital levels of the bank thereby ensuring that we have the regulatory capital needed to support the growth we continue to experience in our nationwide automobile finance business."
    The offering is being made pursuant to a registration statement filed with the Office of Thrift Supervision. This news release is not an offer to sell or a solicitation of an offer to buy the debentures referred to above, and they will not be sold in any state or jurisdiction in which an offer, solicitation or sale would be unlawful under the securities laws of that state or jurisdiction.
    WFS is one of the nation's largest independent automobile finance companies. WFS specializes in originating, securitizing and servicing new and pre-owned prime and non-prime credit quality automobile contracts through its nationwide relationships with automobile dealers. Information about WFS can be found at its Web site at http://www.wfsfinancial.com.