PNC Issues $259 Million of Notes Backed by Car Loans
PNC Grantor Trust 1991-A, a unit of PNC Financial Corp., issued $259.4 million of pass-through certificates.
The notes, backed by retail installment contracts on new and used automobiles, were issued through Morgan, Stanley & Co. They were priced at 99.91406 to yield 7.66%, or 78 basis points more than the two-year Treasury note.
Triple-A Ratings Anticipated
The average term is 1.45 years. Expected final maturity is Jan. 6, 1993, and legal maturity is Dec. 15, 1996.
The securities are expected to be rated triple-A by both Moody's Investors Service Inc. and Standard & Poor's Corp. The rating is based on a 10% letter of credit from Union Bank of Switzerland.
Interest accrues from July 1, settlement is on July 25, and monthly payments begin Aug. 15.
Chemical Bank is trustee, and Pittsburgh National Bank is servicer. The fee to Morgan Stanley for selling the securities is $1.45 per bond. The reallowance - the amount dealers received for selling the bonds while they are in syndication - is 75 cents.