Advanta sells $247M in credit card debt
Advanta finds buyers for $247 million in credit card debt
May 19, 2008: 11:16 AM
NEW YORK (Associated Press) - Advanta Corp. found buyers in the bond market for $247 million in business credit card loans, the credit card lender said Monday.
The Spring House, Pa.-based lender packages its business credit card loans into pools and sells them to investors as bonds.
The company sold a $125 million package of credit card loans paying an annual interest rate of the London Interbank Offered Rate plus 1.5 percentage points, and a $122 million tranche bearing an interest rate of 4.16 percent.
Both pools mature in 10 months.
The sale was led by RBS Greenwich Capital and Merrill Lynch, with Deutsche Bank as co-manager.
Standard & Poor's and Moody's assigned "AAA" ratings to the bonds.
Advanta invested $100 million of its own money in the variable-rate tranche.
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