DALLAS, July 23, 2012 /PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of loyalty and marketing solutions derived from transaction-rich data, today announced that World Financial Network Credit Card Master Note Trust has issued two series (2012-B and 2012-C), totaling $700 million of public, fixed-rate, term asset-backed securities. The asset-backed securities were issued as part of the securitization program for Alliance Data's private label credit card banking subsidiary, World Financial Network Bank (WFNB).
Approximately $580 million of the issuance was sold to investors with a weighted average coupon of approximately 2.1 percent and an average life of just over five and a half years. A subsidiary of WFNB retained approximately $120 million of the subordinated bonds. The Class A Notes, which comprise $525 million of the $700 million, were rated AAA (sf) by both S&P and Fitch. The Class M, Class B and Class C subordinated bonds all achieved AA+/AA (sf), A+ (sf) and BBB (sf) ratings, respectively, from S&P and Fitch.
J.P. Morgan and Wells Fargo Securities were joint book runners for this offering.Charles Horn, chief financial officer of Alliance Data, said, "This recent transaction is consistent with our plans to lock in longer-term fixed-rate funding at attractive levels in lieu of cheaper short-term funding as we seek to trade off near-term benefits in favor of building long-term visibility to our earnings. Our funding costs continue to improve as we secured the lowest coupon ever for a 5-year term ABS deal in our 17 years of ABS issuance. The AAA spread on the 2012-B was also the tightest we have seen since 2006. With write-offs and interest rates both at all time lows, we believe we are in the midst of a very strong period for private label credit. We look to continue securing long-term debt at favorable rates in order to lower our average cost of funds as older tranches of debt mature." About Alliance DataAlliance Data® (NYSE: ADS) and its combined businesses is North America's largest and most comprehensive provider of transaction-based, data-driven marketing and loyalty solutions serving large, consumer-based industries. The Company creates and deploys customized solutions, enhancing the critical customer marketing experience; the result is measurably changing consumer behavior while driving business growth and profitability for some of today's most recognizable brands. Alliance Data helps its clients create and increase customer loyalty through solutions that engage millions of customers each day across multiple touch points using traditional, digital, mobile and other emerging technologies. Headquartered in Dallas, Alliance Data employs nearly 9,000 associates at more than 50 locations worldwide. Alliance Data is a leading provider of marketing-driven credit solutions, and is the parent company of Epsilon®, a leading provider of multi-channel, data-driven technologies and marketing services, and LoyaltyOne®, which owns and operates the AIR MILES® Reward Program, Canada's premier coalition loyalty program. For more information about the company, visit our web site, http://www.alliancedata.com/, or you can follow us on Twitter at www.Twitter.com/AllianceData.
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