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Attention Business Editors:
TD SECURITIES LEADS SECURITIZATION DEAL
TORONTO, July 28 /CNW/ - TD Bank today announced it has sold an $800
million interest in a portfolio of its VISA credit card receivables to York
Receivables Trust II. This deal makes TD the first Canadian bank to complete a
bank credit card securitization with the placement of investment grade rated
subordinated notes.
York Receivables Trust II funded the purchase by issuing two series of
asset-backed securities, with each series having a senior and subordinated
component. The senior securities are rated AAA by both Standard & Poor's
Ratings Service and Dominion Bond Rating Service. The subordinated securities
are rated BBB by both rating agencies.
``There has been rapid growth in the credit card securitization market
which represents an important and attractive funding source,'' says Peter
Aust, Vice President, Capital Finance. ``TD has taken the lead with the
completion of this deal and attained a first with the placement of the
subordinated notes.''
The transaction was structured and lead by TD Securities Inc. and
consists of two series of four-year and five and a half-year terms
respectively.
- the 4-year term notes include $540 million of AAA-rated senior
notes at 5.67% and $28.4 million of BBB-rated notes at 6.30%
(Series 1998-1)
- the 5.5-year term notes include $220 million of AAA senior rated
notes at 5.69% and $11.6 million of BBB-rated notes at 6.36%
Through the issuance of the senior/subordinated note structure, TD has
expanded the asset-backed securities market by providing a new product and the
largest ``BBB'' rated asset-backed securities placement to date.
TD Bank is Canada's fifth largest bank in terms of assets and shareholder
equity. TD Securities Inc. is a wholly-owned subsidiary of TD Bank. TD
Securities is a trade-mark of TD Bank.
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For further information: Brad McConnell, TD Securities, (416) 307-9304
