Union Acceptance Corporation Announces $283 Million Securitization

7 February 2000

Union Acceptance Corporation Announces $283 Million Securitization

INDIANAPOLIS--Feb. 7, 2000--Union Acceptance Corporation ("UAC") today announced that its subsidiary, UAC Securitization Corporation ("UACSC"), has priced an offering of approximately $283 million of asset-backed notes, secured by a pool of prime automobile receivables. The lead manager and co-manager of the transaction were Banc of America Securities LLC, and Bear, Stearns & Co. Inc., respectively.
The UACSC 2000-A Owner Trust is structured as a business trust, which will issue five classes of notes:


 Security     Amount     Average Life    Coupon     Price      Yield

    A-1     $30,000,000      0.14       5.9925%   100.00000   5.9925%
    A-2     $90,425,000      1.00       6.7200%    99.99870   6.8170%
    A-3     $88,175,000      2.00       7.2700%    99.99673   7.3830%
    A-4     $57,158,000      3.35       7.4400%    99.97536   7.5650%
     B      $16,963,339      3.18       7.5700%    99.97600   7.6980%

    "We are pleased to have been able to execute a transaction during a volatile time in the market," commented John Stainbrook, President and Chief Executive Officer. "UAC's strong reputation in the asset-backed market as well as hard work on the part of our underwriters, played a large role in the successful execution of our 2000-A transaction."
    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 13.08% and the weighted average coupon to the investors is 7.26%, giving UACSC a gross spread of 5.82% before hedging and other costs.
    Including the UACSC 2000-A Owner Trust, UAC and its affiliates have securitized over $7.5 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 4,300 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.