MBNA Corp. in Newark, Del., came to market Tuesday afternoon with $500 million of 10-year, floating-rate credit, card-backed securities.
The issue "is the tightest that they have ever traded in this sector," said an asset-backed securities trader with a major bank.
The issue consists of three classes. Class A consists of $425 million senior certificates, priced at 18 basis points above the one-month London Interbank Offered Rate. Class B certificates, worth $37.5 million, were priced at 35 basis points above the one-month Libor. The remaining portion, worth $37.5 million, was a privately placed class of floating-rate, asset- backed certificates.
"This is a major form of funding for MBNA, and they have accessed it easily and effectively over a period of years," said bank bond analyst Allerton G. Smith of Donaldson, Lufkin, & Jenrette.
Lead underwriter on the deal was Lehman Brothers Inc.
Boatmen's Bancshares, St. Louis, issued $290 million in securities backed by auto loans Wednesday. The issue, which has a fixed rate, also has several classes, said a trader with a major bank.
"The pricing was fair," the trader said.
The lead underwriter is CS First Boston.