MBIA Arranges Increase in Warehouse Facility for Continental Auto Receivables to $175 Million

18 November 1999

MBIA Arranges Increase in Warehouse Facility for Continental Auto Receivables to $175 Million

    ARMONK, N.Y.--Nov. 18, 1999--MBIA Insurance Corporation, the world's leading financial guarantor and the main operating subsidiary of MBIA Inc. , announced that it has arranged an increase to a commercial paper warehouse facility for Continental Auto Receivables Inc. from $125 million to $175 million.
    The company, based in Dublin, Ohio, will utilize the additional borrowing capacity to continue its growth in originating and servicing prime-quality automobile loans. The facility was initially arranged in July.
    Continental Auto will sell its auto loans to a special-purpose subsidiary, which will borrow from Triple-A One Funding Corporation, a commercial paper conduit rated A-1/P-1 and administered by MBIA. The Continental Auto subsidiary will pledge its auto loans as collateral to Triple-A One and MBIA. Triple-A One provides commercial paper financing to a number of MBIA clients involving a variety of asset types. At Oct. 31, 1999, Triple-A One had $3.8 billion in commercial paper outstanding.
    Continental Auto was founded in 1997 by five executives who had previously managed the prime-auto lending operations of a major midwestern regional bank, including an indirect auto portfolio that grew to more than $4.5 billion. Continental Auto originates its loans through sourcing relationships with dealers in Michigan, Ohio and Pennsylvania. Its servicing portfolio currently exceeds $300 million.
    "We are pleased to help expand the funding for the continuing growth of this relatively young company, which has extremely capable and experienced management," said Michael Antonicelli, a vice president in MBIA's Structured Finance Division. "Warehouse facilities backed by auto loans are just one of the many types of cost-effective structured financings we provide for customers."
    William Coombs, president and chief executive of Continental Auto, said, "This expanded facility will help us continue to grow and better serve our customers. MBIA had the analytical skill to recognize the strength and high quality standards of our operation."
    MBIA Inc., through its subsidiaries, is the world's preeminent financial guarantor and a leading provider of specialized financial services. MBIA provides innovative and cost-effective products and services that meet the credit enhancement, financial and investment needs of its public and private sector clients, domestically and internationally. MBIA Insurance Corporation has a financial strength rating of Triple-A from Moody's Investors Service, Standard & Poor's Ratings Services, Fitch IBCA and Japan Rating and Investment Information Inc. Please visit MBIA's Web site at http://www.mbia.com.