ContiFinancial Places $80 Million of Auto Loan Asset-Backed Securities
6 October 1998
ContiFinancial Places $80 Million of Auto Loan Asset-Backed Securities
NEW YORK, NY--October 5, 1998--ContiFinancial Corporation today announced that its wholly-owned subsidiary, Triad Financial Corporation, privately placed $80 million of asset-backed Notes. The Notes were sold in three tranches, a 5.84% Class A-1, a 6.24% Class A-2 and an 8.18% Class B, rated AAA, A and BBB, respectively, by Duff & Phelps Credit Rating Co. The AAA, A, and BBB tranches were priced to yield 110, 150 and 343 basis points over the two-year Treasury security, respectively. ContiFinancial Services Corporation, the NASD-registered broker/dealer subsidiary of ContiFinancial Corporation, structured and placed the notes under Rule 144a.
James M. Landy, President of Triad Financial, said, "We have expanded our national origination base by emphasizing dealer service, and we will continue to explore diversified growth strategies while emphasizing high credit standards."
This is Triad's second securitization during fiscal 1999. Since February 1997, the Company has successfully completed six private placements of securitized loans, aggregating over $361 million. Triad has originated approximately $137 million of loans through the first five months of the fiscal year ending March 31, 1999 and, as of August 31, 1998, its serviced portfolio was approximately $325 million.
Triad is an automobile finance company based in Huntington Beach, California, engaged in the business of purchasing and servicing prime and non-prime retail installment sale contracts from over 2,000 automobile dealers in 30 states. The Company provides funding primarily for late model used vehicles.
ContiFinancial Corporation is a diversified financial services company, with headquarters in New York City and over 3,000 employees nationwide. The Company, through ContiMortgage Corporation and other subsidiaries, is a leading originator, securitizer, and servicer of home equity loans made to borrowers whose needs may not be met by traditional financial institutions. In addition, through ContiTrade Services L.L.C. and its ContiMAP(R) conduit, the Company finances a wide range of commercial real estate. Through ContiTrade Services L.L.C., the Company also provides financing and securitization services and, through ContiFinancial Services Corporation, bond placement services, to subsidiaries and other originators of a broad range of loans, leases and receivables, including loans for a variety of commercial real estate property types; home equity loans, home improvement loans; prime, non-prime and sub-prime auto loans; equipment leases; charged-off consumer debt; franchisee loans and time-share loans.
Certain statements contained in this news release, which are not historical fact, may be deemed to be forward-looking statements under the federal securities laws. There are many important factors that could cause ContiFinancial's actual results to differ materially from those indicated in the forward-looking statements. Such factors include, but are not limited to, general economic conditions; interest rate risk; prepayment speeds; delinquency and default rates; changes (legislative and otherwise) in the asset securitization industry; demand for ContiFinancial's services; the impact of certain covenants in loan agreements of ContiFinancial; the degree to which ContiFinancial is leveraged; its needs for financing; the capital markets, including the markets for asset-backed securities, commercial mortgage-backed securities and net interest margin securities; and other risks identified in ContiFinancial's Securities and Exchange Commission filings. In addition, it should be noted that past financial and operational performance of ContiFinancial is not necessarily indicative of future financial and operational performance.
The Notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold without registration under, or applicable exemption from, the requirements of such Act. This does not constitute an offer to sell or solicitation of an offer to purchase any securities.