Alliance Data closes $100M asset-backed securities
Alliance Data Systems Corp. said Thursday its private label credit card banking subsidiary has issued $100 million of fixed-rate term asset backed securities.
The securities were issued as part of the securitization program for World Financial Network National Bank, Alliance's banking subsidiary.
The issuance marks the first time since September 2008 that the securities were issued without the benefit of the Federal Reserve's Term Asset-Backed Securities Loan Facility. It is the first time successfully placing subordinated bonds since April 2006.
The securities consist of four series of notes rated "AAA," ''AA," ''A" and "BBB," with an average life of just under three years and a weighted average fixed-rate of just under 5 percent.
Barclays Capital was the sole book runner on the transaction.
The bank subsidiary also completed the renewal of a $550 million bank conduit facility. It funds existing and new private label credit card programs, finances approximately $380 million in card assets, providing current financing as well as an additional source of untapped liquidity.
The facility was renewed by JP Morgan, Barclays Bank PLC, and Royal Bank of Canada, at terms reflecting the better spreads existing in today's marketplace.
Alliance Data provides private label credit cards for more than 100 retailer brands including Victoria's Secret, Ann Taylor and Pottery Barn.
Alliance Data shares rose 68 cents, or 1 percent, to $64.67. They've traded between $34.72 and $69.09 in the past 52 weeks.