NEW YORK -- First USA Inc. said it has priced a $1.25 billion securitization of credit card receivables in First USA Credit Card Master Trust.
The parent of Delaware-based First USA bank said interest will accrue initially on Series 1993-2, $500 million of floating rate asset backed certificates with a three-year average life, at 3.3375; and on Series 1993-3, $750 million of float rate asset backed certificates with a five-year average life, at 3.4357%.
Due to Close This Week
The transaction is scheduled to close on Thursday. After Nov. 14, the rates on the two issues rise to 0.15% and 0.25%, respectively, over the one-month London interbank offered rate.
The underwriters are Merrill Lynch & Co., Bear, Stearns & Co., Goldman, Sachs & Co., J.P. Morgan Securities Inc.
High Ratings Expected
The certificates are expected to be rated AAA by Standard & Poor's and Aaa by Moody's Investors Service.
The deal includes a cash collateral account of 13% as a credit enhancement.
First USA Bank ranks among the top 15 MasterCard and Visa issuers, with 4.5 million cards issued.
Its First USA, Merchant Services Inc. affiliate, one of the top 10 in processing transactions for retailers, handled more than $10 billion in credit card sales for the fiscal year ended June 30.