A unit of First Chicago Corp. issued $1 billion of securities backed by credit card loans.
The securities were assigned a coupon of 6.25% and priced at 99.671 to yield 6.35%, 55 basis points more than five-year U.S. Treasury notes.
The securities - issued by FCC National Bank through a special-purpose vehicle called First Chicago Master Trust II 1992-E - have a final maturity of Feb. 15, 1998, and an average life of 5.07 years.
First Boston Corp. was lead manager of the offering, which is expected to be rated triple A by Moody's Investors Service Inc. and Standard & Poor's Corp. Credit support includes a 12% cash collateral account.
First Chicago benefited from tightening yield spreads for credit card securities. Last August, spreads were in the range of 82 to 95 basis points for one- to five-year card securities, according to Chemical Securities Inc.
In June, a Citicorp unit issued $1.6 billion in three-year credit card securities at a yield of 5.95%, or 46.6 basis points over Treasury securities of the same maturity.