Union Acceptance Corporation Announces $365 Million Securitization

5 August 1999

Union Acceptance Corporation Announces $365 Million Securitization

INDIANAPOLIS--Aug. 5, 1999--Union Acceptance Corporation ("UAC") today announced that its subsidiary, UAC Securitization Corporation ("UACSC"), has priced an offering of approximately $365 million of asset-backed notes, secured by a pool of prime automobile receivables. The lead manager and co-manager of the transaction were Bear, Stearns & Co. Inc., and Banc of America Securities LLC, respectively.
The UACSC 1999-C Owner Trust is structured as a business trust, which will issue five classes of notes:


Security    Amount      Average Life   Coupon   Price     Yield

  A-1     $ 72,500,000     0.28        5.47%  100.00000   5.47%
  A-2     $ 94,500,000     1.00        6.19%   99.99110   6.28%
  A-3     $ 88,000,000     2.00        6.61%   99.98507   6.71%
  A-4     $ 95,200,000     3.25        6.82%   99.99348   6.92%
   B      $ 14,591,551     3.74        7.05%   99.98219   7.16%

    "We are pleased with the execution we received on our 99-C transaction, especially given the current volatile market," commented John Stainbrook, President and Chief Executive Officer. "We were in and out of the market in two days, selling all the notes for cash. We feel we have avoided much of the rush of supply that will be coming before the fourth quarter."
    The notes will be rated P-1/A-1+ for the A-1 class of notes and Aaa/AAA for the A-2 through B class of notes by Moody's Investors Service, Inc. and Standard & Poor's Ratings Services, a division of the McGraw Hill Companies, Inc. The payment of monthly principal and interest is guaranteed by an insurance policy provided by MBIA Insurance Corporation. The Servicer is UAC, the Indenture Trustee is Harris Trust and Savings Bank, and the Owner Trustee is First Union Trust Company, National Association.
    The weighted average contract rate of the receivables is 13.31% and the weighted average coupon to the investors is 6.65%, giving UACSC a gross spread of 6.66% before hedging and other costs.
    Including the UACSC 1999-C Owner Trust, UAC and its affiliates have securitized over $6.9 billion in prime automobile receivables.

    Corporate Description

    UAC is one of the nation's largest independent, indirect automobile finance companies. The Company's primary business is acquiring, securitizing and servicing prime retail installment sales contracts. These contracts are originated by dealerships affiliated with major domestic and foreign automobile manufacturers. The Company is focused on the upper-end of the credit quality spectrum. Union Acceptance Corporation commenced business in 1986 and currently acquires receivables from over 4,200 manufacturer-franchised dealerships in 35 states. By using state-of-the-art technology in a highly centralized underwriting and servicing environment, Union Acceptance Corporation enjoys one of the lowest cost operating structures in the independent prime automobile finance industry.