MINNEAPOLIS, Sept. 10 /PRNewswire/ -- Arcadia Financial Ltd. (NYSE: AAC)
announced today the pricing of $600 million of automobile receivables-backed
securities through Credit Suisse First Boston, Banc of America Securities LLC,
Chase Securities Inc. and J.P. Morgan & Co.
The coupon cost to the investor was approximately 6.94% compared to the
APR of loans in the initial delivery of approximately 17.15%. This gives
Arcadia a gross interest spread of approximately 10.21%.
Richard A. Greenawalt, Arcadia's Chief Executive Officer commented, "Once
again, we are very pleased to have completed a successful securitization
transaction, especially in such a difficult market. Money managers purchasing
asset-backed bonds are wary of the remaining months of 1999 and are unsure of
how their investors will act at the end of the year. In this environment,
selling bonds of any type is a difficult process. We are pleased with our
bankers' efforts to help us place $600 million of these bonds."
The securities are issued via an owner trust, Arcadia Automobile
Receivables Trust, 1999-C, in three classes:
Average Annual
Security Amount Life (yrs) Coupon Price Yield
A-1 242,000,000 0.75 6.250 99.93750000 6.420
A-2 150,000,000 2.00 6.900 99.96093750 7.021
A-3 208,000,000 3.42 7.200 99.95312500 7.325
The Class A-1, A-2 and A-3 Notes will be rated AAA by Standard & Poor's
and Aaa by Moody's. Timely principal and interest on the Notes are guaranteed
by an insurance policy provided by Financial Security Assurance Inc. ("FSA").
The ratings by Standard & Poor's and Moody's of the Notes will be based on the
issuance of the insurance policy provided by FSA.
Use of the owner trust in this transaction enables Arcadia to offer
multiple, sequential-pay securities and to prefund a portion of the trust,
thereby issuing a larger amount of securities than the amount of receivables
initially available. The Company anticipates initial delivery to the trust of
approximately $435 million in automobile loans acquired from Arcadia's network
of automobile dealers. In addition, approximately $165 million will be
available to purchase receivables to be delivered in the next several weeks.
This news release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected. The most significant among these risks and
uncertainties are (1) the level of delinquencies, gross charge-offs and net
losses, (2) the company's ability to achieve adequate interest rate spreads
and (3) the level of operating expenses. Earnings may also be affected by the
effects of economic factors on consumer debt and by competitive pressures.
Additional risks which may affect the company's future performance are
detailed under the caption "Cautionary Statements" in Exhibit 99.1 to the
company's Quarterly Report on Form 10-Q for the quarter ended June 30, 1999.
Arcadia Financial Ltd. is a Minneapolis-based consumer financial services
company specializing in purchasing, selling and servicing retail installment
contracts for new and used automobiles originated in 45 states. The company,
founded in 1990, is the nation's largest independent provider of automobile
financing. Its 18 Regional Buying Centers are located in Arizona; northern
and southern California; Colorado; Florida; Georgia; Maryland; Massachusetts;
Minnesota; Missouri; New York; North Carolina; Ohio; Tennessee; north, south
and west Texas; and Washington.
SOURCE Arcadia Financial Ltd.
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CONTACT:
Scott R. Fjellman, Vice President, Investor
Relations of Arcadia Financial Ltd., 612-944-4582
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