MBNA America Bank, N.A. Securitizes $750 Million of Credit Card Receivables
WILMINGTON, Del., Oct. 16 /PRNewswire/ -- MBNA Corporation (NYSE: KRB - news) announced today that MBNA America Bank, N.A., its wholly owned subsidiary, priced $750 million of three-year floating rate credit card asset backed securities as part of the bank's normal securitization program. The securitization from the MBNA Master Credit Card Trust II consists of two classes of publicly traded securities (Class A and Class B) as well as a privately placed collateral invested amount. The planned $500 million transaction was increased to $750 million based upon strong investor demand.
The transaction, Series 1998-I, included $637.5 million of Class A (Senior) floating rate asset backed certificates, $56.25 million of Class B (Subordinate) floating rate asset backed certificates and a $56.25 million, privately placed, floating rate collateral invested amount. The 3.0 year Class A certificates accrue interest at 26 basis points over the one month London Interbank Offered Rate (''LIBOR''). The 3.0 year Class B certificates accrue interest at 51 basis points over one month LIBOR. Both the Class A and Class B certificates were priced at par. The transaction, which is scheduled to close October 22, 1998, was lead managed by Salomon Smith Barney, and co-managed by Bear, Stearns & Co. Inc., Credit Suisse First Boston, Lehman Brothers and Merrill Lynch & Co..
Year-to-date, MBNA has completed 12 securitization transactions totaling $7.3 billion.
MBNA Corporation, a bank holding company and parent of MBNA America Bank, N.A., a national bank, has $56.3 billion in managed loans. MBNA, the largest independent credit card lender in the world also provides retail deposit, consumer loan, and insurance products.
SOURCE: MBNA Corporation |
