<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: November 14, 1996
(Date of earliest event reported)
FIRSTPLUS INVESTMENT CORPORATION
(Exact name of Registrant as specified in its charter)
Nevada 333-11855 75-2596063
(State of Incorporation) (Commission File No.) (I.R.S. Employer
Identification No.)
3773 Howard Hughes Parkway
Suite 300N
Las Vegas, Nevada 89109
(Address of Principal executive offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (702) 866-2202
<PAGE> 2
Item 5. Other Events.
Reference is hereby made to the Registrant's Registration Statement on
Form S-3 (File No. 333-11855) filed with the Securities and Exchange Commission
(the "Commission") on September 12, 1996 (the "Registration Statement"),
pursuant to which the Registrant registered $1,240,625,000 aggregate principal
amount of its asset backed notes and asset backed certificates, issuable in
various series, for sale in accordance with the provisions of the Securities
Act of 1933, as amended (the "Act"). Reference is also hereby made to the
Prospectus and the related Prospectus Supplement (collectively, the
"Prospectus"), which will be filed with the Commission pursuant to Rule
424(b)(5), with respect to the Registrant's Asset Backed Notes and Asset Backed
Certificates, Series 1996-4 (the "Offered Securities").
The Registrant is filing this Current Report on Form 8-K to provide
prospective investors with certain materials which constitute "Collateral Term
Sheets" as described in the no-action letter dated February 27, 1995 issued by
the Division of Corporation Finance of the Commission to the Public Securities
Association (the "PSA Letter"), the filing of which materials is a condition of
the relief granted in such letters (such materials being the "Collateral Term
Sheets"). The Collateral Term Sheets were prepared solely by Bear Stearns &
Co. Inc. in connection with the offering of the Offered Securities and are
being distributed by Bear Stearns & Co. Inc. and Banc One Capital Corporation
in connection with the public offering of the Offered Securities. The
Registrant did not prepare or participate in the preparation of the Collateral
Term Sheets. The Collateral Term Sheets are set forth in Exhibit 28.1 hereto.
The assumptions used in preparing the Collateral Term Sheets were
based upon a preliminary compilation of the underlying collateral and the
estimated principal amount and other features of the Offered Securities. The
actual features of the Offered Securities and a detailed description of the
final constituency of the underlying collateral will be set forth in the
Prospectus.
Due to the preliminary nature of the information regarding the
collateral and the structure of the Offered Securities used in preparing the
Collateral Term Sheets, no assurance can be given as to either the Collateral
Term Sheets' or the underlying assumptions' accuracy, appropriateness or
completeness in any particular context; nor can assurance be given as to
whether the Collateral Term Sheets and/or the assumptions upon which they are
based reflect present market conditions or future market performance. These
Collateral Term Sheets should not be construed as either projections or
predictions or as legal, tax, financial or accounting advice.
Any yields or weighted average lives shown in the Collateral Term
Sheets are based on prepayment assumptions, and changes in such prepayment
assumptions may dramatically affect such yields or weighted average lives. In
addition, it is possible that prepayments on the collateral will occur at rates
slower or faster than the rates shown in the Collateral Term Sheets.
Furthermore, unless otherwise provided, the Collateral Term Sheets assume no
losses on the collateral and no interest shortfall. The specific
characteristics of the Offered Securities may differ from those shown in the
Collateral Term Sheets due to differences between the actual collateral and the
hypothetical collateral used in preparing the Collateral Term Sheets. As noted
above, the principal amount and designation of any security described in the
Collateral Term Sheets are subject to change prior to issuance.
-2-
<PAGE> 3
Please be advised that mortgage-backed securities may not be
appropriate for all investors. Potential investors must be willing to assume,
among other things, market price volatility, mortgage prepayments, yield curve
and interest rate risks. Investors should make every effort to consider the
risks of these securities.
Any statement or information contained in the Collateral Term Sheets
shall be deemed to be modified or superseded for purposes of the Prospectus and
the Registration Statement by statements or information contained in the
Prospectus.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
Exhibit No. Description
28.1 Collateral Term Sheets provided by Bear Stearns
& Co. Inc.
-3-
<PAGE> 4
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
FIRSTPLUS INVESTMENT CORPORATION
November 14, 1996 By: /s/ MARK J. LANDRY
----------------------------------------------
Mark J. Landry, Treasurer and Chief
Financial Officer
-4-
<PAGE> 5
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
- ------- -----------
<S> <C>
28.1 - Collateral Term Sheets provided by Bear Stearns & Co. Inc.
</TABLE>
<PAGE> 1
EXHIBIT 28.1
Collateral Term Sheets provided by Bear Stearns & Co. Inc.
[Begins on Next Page]
<PAGE> 2
FIRSTPLUS HOME LOAN OWNER TRUST 1996-4
Information Relating to the Notes and Certificates (page 1 of 4)
TRANSACTION SUMMARY (a), (b)
<TABLE>
<CAPTION>
- ---------------- -------------- ------------ -------------- ------------ ------------ ------------- ----------------
ESTIMATED ESTIMATED ESTIMATED ESTIMATED
WAL MODIFIED PRINCIPAL PRINCIPAL EXPECTED
APPROXIMATE TO MATURITY DURATION LOCKOUT WINDOW RATINGS
CERTIFICATE SIZE COUPON (YEARS) (YEARS) (MONTHS) (MONTHS) (MOODY'S/S&P)
- ---------------- -------------- ------------ -------------- ------------ ------------ ------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A-1 $ 100,750,000 Fixed 0.80 0.75 none 20 Aaa/AAA (b)
CLASS A-2 $ 37,740,000 Fixed 2.00 1.82 19 10 Aaa/AAA (b)
CLASS A-3 $ 50,270,000 Fixed 3.00 2.64 28 16 Aaa/AAA (b)
CLASS A-4 $ 27,520,000 Fixed 4.00 3.41 43 10 Aaa/AAA (b)
CLASS A-5 $ 37,100,000 Fixed 5.00 4.12 52 17 Aaa/AAA (b)
CLASS A-6 $ 56,620,000 Fixed 7.00 5.34 68 34 Aaa/AAA (b)
CLASS A-7 $ 44,340,000 Fixed 10.00 6.86 101 41 Aaa/AAA (b)
CLASS A-8 $ 21,950,000 Fixed 13.00 7.93 141 31 Aaa/AAA (b)
CLASS A-9 $ 23,710,000 Fixed 16.91 8.97 171 85 Aaa/AAA (b)
- ---------------- -------------- ------------ -------------- ------------ ------------ ------------- ----------------
</TABLE>
NOTES: (a) 100% Prepayment Assumption: 2.0% CPR in month 1, and an
additional 0.9636% per annum in each month thereafter until
month 12. On and after month 12, 12.6% CPR.
(b) MBIA surety bond.
CLASS A-1 (TO MATURITY)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
% OF PREPAYMENT ASSUMPTION 0% 50% 75% 100% 125% 150%
RAMP TO 0% 6.30% 9.45% 12.60% 15.75% 18.90%
- ------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 3.36 1.18 0.94 0.80 0.71 0.65
MODIFIED DURATION (YEARS) 2.81 1.09 0.88 0.75 0.67 0.62
FIRST PRINCIPAL PAYMENT 12/10/96 12/10/96 12/10/96 12/10/96 12/10/96 12/10/96
LAST PRINCIPAL PAYMENT 8/10/04 8/10/99 11/10/98 7/10/98 4/10/98 2/10/98
PRINCIPAL LOCKOUT (MONTHS) none none none NONE none none
PRINCIPAL WINDOW (MONTHS) 93 33 24 20 17 15
ILLUSTRATIVE YIELD @ PAR (30/360) 6.042% 5.958% 5.925% 5.896% 5.872% 5.852%
- ------------------------------------------------------------------------------------------------------------
CLASS A-2 (TO MATURITY)
- ------------------------------------------------------------------------------------------------------------
% OF PREPAYMENT ASSUMPTION 0% 50% 75% 100% 125% 150%
RAMP TO 0% 6.30% 9.45% 12.60% 15.75% 18.90%
- ------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 8.83 3.37 2.50 2.00 1.67 1.45
MODIFIED DURATION (YEARS) 6.58 2.95 2.25 1.82 1.54 1.34
FIRST PRINCIPAL PAYMENT 8/10/04 8/10/99 11/10/98 7/10/98 4/10/98 2/10/98
LAST PRINCIPAL PAYMENT 10/10/06 12/10/00 12/10/99 4/10/99 11/10/98 8/10/98
PRINCIPAL LOCKOUT (MONTHS) 92 32 23 19 16 14
PRINCIPAL WINDOW (MONTHS) 27 17 14 10 8 7
ILLUSTRATIVE YIELD @ PAR (30/360) 6.318% 6.289% 6.273% 6.256% 6.241% 6.226%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
[BEAR STEARNS LOGO]
This information should be considered only after reading Bear Stearns' Statement
Regarding Assumptions as to Securities, Pricing Estimates and Other Information
(the "Statement"), which should be attached. Do not use or rely on this
information if you have not received and reviewed this Statement. You may obtain
a copy of the Statement from your sales representative.
<PAGE> 3
FIRSTPLUS HOME LOAN OWNER TRUST 1996-4
Information Relating to the Notes and Certificates (page 2 of 4)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
CLASS A-3 (TO MATURITY)
- ------------------------------------------------------------------------------------------------------------
% OF PREPAYMENT ASSUMPTION 0% 50% 75% 100% 125% 150%
RAMP TO 0% 6.30% 9.45% 12.60% 15.75% 18.90%
- ------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 11.13 5.06 3.78 3.00 2.49 2.13
MODIFIED DURATION (YEARS) 7.71 4.18 3.25 2.64 2.23 1.93
FIRST PRINCIPAL PAYMENT 10/10/06 12/10/00 12/10/99 4/10/99 11/10/98 8/10/98
LAST PRINCIPAL PAYMENT 3/10/09 12/10/02 6/10/01 7/10/00 11/10/99 6/10/99
PRINCIPAL LOCKOUT (MONTHS) 118 48 36 28 23 20
PRINCIPAL WINDOW (MONTHS) 30 25 19 16 13 11
ILLUSTRATIVE YIELD @ PAR (30/360) 6.496% 6.478% 6.467% 6.456% 6.445% 6.433%
- ------------------------------------------------------------------------------------------------------------
CLASS A-4 (TO MATURITY)
- ------------------------------------------------------------------------------------------------------------
% OF PREPAYMENT ASSUMPTION 0% 50% 75% 100% 125% 150%
RAMP TO 0% 6.30% 9.45% 12.60% 15.75% 18.90%
- ------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 12.82 6.66 5.03 4.00 3.31 2.82
MODIFIED DURATION (YEARS) 8.42 5.23 4.15 3.41 2.88 2.49
FIRST PRINCIPAL PAYMENT 3/10/09 12/10/02 6/10/01 7/10/00 11/10/99 6/10/99
LAST PRINCIPAL PAYMENT 3/10/10 3/10/04 5/10/02 4/10/01 7/10/00 12/10/99
PRINCIPAL LOCKOUT (MONTHS) 147 72 54 43 35 30
PRINCIPAL WINDOW (MONTHS) 13 16 12 10 9 7
ILLUSTRATIVE YIELD @ PAR (30/360) 6.610% 6.599% 6.590% 6.582% 6.573% 6.564%
- ------------------------------------------------------------------------------------------------------------
CLASS A-5 (TO MATURITY)
- ------------------------------------------------------------------------------------------------------------
% OF PREPAYMENT ASSUMPTION 0% 50% 75% 100% 125% 150%
RAMP TO 0% 6.30% 9.45% 12.60% 15.75% 18.90%
- ------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 13.99 8.15 6.26 5.00 4.14 3.52
MODIFIED DURATION (YEARS) 8.83 6.09 4.95 4.12 3.50 3.04
FIRST PRINCIPAL PAYMENT 3/10/10 3/10/04 5/10/02 4/10/01 7/10/00 12/10/99
LAST PRINCIPAL PAYMENT 7/10/11 1/10/06 1/10/04 8/10/02 8/10/01 12/10/00
PRINCIPAL LOCKOUT (MONTHS) 159 87 65 52 43 36
PRINCIPAL WINDOW (MONTHS) 17 23 21 17 14 13
ILLUSTRATIVE YIELD @ PAR (30/360) 6.724% 6.716% 6.709% 6.702% 6.695% 6.688%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
[BEAR STEARNS LOGO]
This information should be considered only after reading Bear Stearns' Statement
Regarding Assumptions as to Securities, Pricing Estimates and Other Information
(the "Statement"), which should be attached. Do not use or rely on this
information if you have not received and reviewed this Statement. You may obtain
a copy of the Statement from your sales representative.
<PAGE> 4
FIRSTPLUS HOME LOAN OWNER TRUST 1996-4
Information Relating to the Notes and Certificates (page 3 of 4)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
CLASS A-6 (TO MATURITY)
- ------------------------------------------------------------------------------------------------------------
% OF PREPAYMENT ASSUMPTION 0% 50% 75% 100% 125% 150%
RAMP TO 0% 6.30% 9.45% 12.60% 15.75% 18.90%
- ------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 16.23 10.79 8.61 7.00 5.82 4.96
MODIFIED DURATION (YEARS) 9.38 7.31 6.24 5.34 4.62 4.04
FIRST PRINCIPAL PAYMENT 7/10/11 1/10/06 1/10/04 8/10/02 8/10/01 12/10/00
LAST PRINCIPAL PAYMENT 8/10/14 6/10/09 3/10/07 5/10/05 1/10/04 12/10/02
PRINCIPAL LOCKOUT (MONTHS) 175 109 85 68 56 48
PRINCIPAL WINDOW (MONTHS) 38 42 39 34 30 25
ILLUSTRATIVE YIELD @ PAR (30/360) 7.084% 7.079% 7.075% 7.070% 7.065% 7.060%
- ------------------------------------------------------------------------------------------------------------
CLASS A-7 (TO MATURITY)
- ------------------------------------------------------------------------------------------------------------
% OF PREPAYMENT ASSUMPTION 0% 50% 75% 100% 125% 150%
RAMP TO 0% 6.30% 9.45% 12.60% 15.75% 18.90%
- ------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 18.63 14.04 11.91 10.00 8.47 7.26
MODIFIED DURATION (YEARS) 9.89 8.51 7.70 6.86 6.10 5.45
FIRST PRINCIPAL PAYMENT 8/10/14 6/10/09 3/10/07 5/10/05 1/10/04 12/10/02
LAST PRINCIPAL PAYMENT 5/10/16 10/10/12 8/10/10 9/10/08 1/10/07 8/10/05
PRINCIPAL LOCKOUT (MONTHS) 212 150 123 101 85 72
PRINCIPAL WINDOW (MONTHS) 22 41 42 41 37 33
ILLUSTRATIVE YIELD @ PAR (30/360) 7.332% 7.329% 7.327% 7.324% 7.320% 7.317%
- ------------------------------------------------------------------------------------------------------------
CLASS A-8 (TO MATURITY)
- ------------------------------------------------------------------------------------------------------------
% OF PREPAYMENT ASSUMPTION 0% 50% 75% 100% 125% 150%
RAMP TO 0% 6.30% 9.45% 12.60% 15.75% 18.90%
- ------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 20.42 17.08 14.86 13.00 11.29 9.81
MODIFIED DURATION (YEARS) 9.95 9.18 8.55 7.93 7.28 6.64
FIRST PRINCIPAL PAYMENT 5/10/16 10/10/12 8/10/10 9/10/08 1/10/07 8/10/05
LAST PRINCIPAL PAYMENT 12/10/18 3/10/15 4/10/13 3/10/11 8/10/09 1/10/08
PRINCIPAL LOCKOUT (MONTHS) 233 190 164 141 121 104
PRINCIPAL WINDOW (MONTHS) 32 30 33 31 32 30
ILLUSTRATIVE YIELD @ PAR (30/360) 7.785% 7.783% 7.781% 7.780% 7.778% 7.775%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
[BEAR STEARNS LOGO]
This information should be considered only after reading Bear Stearns' Statement
Regarding Assumptions as to Securities, Pricing Estimates and Other Information
(the "Statement"), which should be attached. Do not use or rely on this
information if you have not received and reviewed this Statement. You may obtain
a copy of the Statement from your sales representative.
<PAGE> 5
FIRSTPLUS HOME LOAN OWNER TRUST 1996-4
Information Relating to the Notes and Certificates (page 4 of 4)
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
CERTIFICATES (TO MATURITY)
- ------------------------------------------------------------------------------------------------------------
% OF PREPAYMENT ASSUMPTION 0% 50% 75% 100% 125% 150%
RAMP TO 0% 6.30% 9.45% 12.60% 15.75% 18.90%
- ------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 23.55 20.28 18.67 16.91 15.25 13.67
MODIFIED DURATION (YEARS) 10.31 9.73 9.40 8.97 8.51 8.02
FIRST PRINCIPAL PAYMENT 12/10/18 3/10/15 4/10/13 3/10/11 8/10/09 1/10/08
LAST PRINCIPAL PAYMENT 9/10/21 1/10/21 12/10/19 3/10/18 5/10/16 4/10/15
PRINCIPAL LOCKOUT (MONTHS) 264 219 196 171 152 133
PRINCIPAL WINDOW (MONTHS) 34 71 81 85 82 88
ILLUSTRATIVE YIELD @ PAR (30/360) 8.012% 8.011% 8.010% 8.009% 8.008% 8.007%
- ------------------------------------------------------------------------------------------------------------
** CLASS A-8 (TO 10% CLEAN-UP CALL)
- ------------------------------------------------------------------------------------------------------------
% OF PREPAYMENT ASSUMPTION 0% 50% 75% 100% 125% 150%
RAMP TO 0% 6.30% 9.45% 12.60% 15.75% 18.90%
- ------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 19.96 16.80 14.50 12.71 10.98 9.51
MODIFIED DURATION (YEARS) 9.86 9.11 8.44 7.83 7.15 6.51
FIRST PRINCIPAL PAYMENT 5/10/16 10/10/12 8/10/10 9/10/08 1/10/07 8/10/05
LAST PRINCIPAL PAYMENT 2/10/17 1/10/14 9/10/11 12/10/09 3/10/08 9/10/06
PRINCIPAL LOCKOUT (MONTHS) 233 190 164 141 121 104
PRINCIPAL WINDOW (MONTHS) 10 16 14 16 15 14
ILLUSTRATIVE YIELD @ PAR (30/360) 7.784% 7.783% 7.781% 7.779% 7.777% 7.774%
- ------------------------------------------------------------------------------------------------------------
** CERTIFICATES (TO 10% CLEAN-UP CALL)
- ------------------------------------------------------------------------------------------------------------
% OF PREPAYMENT ASSUMPTION 0% 50% 75% 100% 125% 150%
RAMP TO 0% 6.30% 9.45% 12.60% 15.75% 18.90%
- ------------------------------------------------------------------------------------------------------------
AVERAGE LIFE (YEARS) 20.22 17.13 14.80 13.05 11.30 9.80
MODIFIED DURATION (YEARS) 9.74 9.06 8.42 7.85 7.20 6.57
FIRST PRINCIPAL PAYMENT 2/10/17 1/10/14 9/10/11 12/10/09 3/10/08 9/10/06
LAST PRINCIPAL PAYMENT 2/10/17 1/10/14 9/10/11 12/10/09 3/10/08 9/10/06
PRINCIPAL LOCKOUT (MONTHS) 242 205 177 156 135 117
PRINCIPAL WINDOW (MONTHS) 1 1 1 1 1 1
ILLUSTRATIVE YIELD @ PAR (30/360) 8.011% 8.009% 8.008% 8.006% 8.004% 8.001%
- ------------------------------------------------------------------------------------------------------------
</TABLE>
[BEAR STEARNS LOGO]
This information should be considered only after reading Bear Stearns' Statement
Regarding Assumptions as to Securities, Pricing Estimates and Other Information
(the "Statement"), which should be attached. Do not use or rely on this
information if you have not received and reviewed this Statement. You may obtain
a copy of the Statement from your sales representative.
<PAGE> 6
FIRSTPLUS HOME LOAN OWNER TRUST 1996-4
Information Relating to the Collateral
FIXED RATE MORTGAGE LOANS
Preliminary characteristics of the Initial Mortgage Loans as of 11/1/96
<TABLE>
<S> <C> <C>
TOTAL NUMBER OF LOANS: 12,209
TOTAL OUTSTANDING LOAN BALANCE: $350,496,032
BALLOON (% OF TOTAL): none
LEVEL PAY (% OF TOTAL): 100.00%
AVERAGE LOAN PRINCIPAL BALANCE: $ 28,708 ($53 to $80,000)
WEIGHTED AVERAGE COUPON: 14.51% (10.99% to 20.49%)
WEIGHTED AVERAGE REMAINING TERM TO MATURITY (MONTHS): 226 (35 to 300)
WEIGHTED AVERAGE SEASONING (MONTHS): 2 (0 to 63)
WEIGHTED AVERAGE ORIGINAL TERM (MONTHS): 228 (36 to 300)
</TABLE>
RANGE OF ORIGINAL TERMS: LEVEL PAY
--------------------------
1 - 119: 0.74%
120 - 179: 4.42%
180 - 239 27.49%
240 - 300: 67.34%
LOAN TYPE: "Buster" Plus (Up to 60% Debt Consolidation with remainder HI) 41%
"Debt Buster" (Up to 100% Debt Consolidation) 59%
FICO SCORES
PERCENT OF MORTGAGE LOAN POOL WITH FICO SCORES: 100%
WA FICO SCORE (BASED ON MORTGAGE LOANS WITH FICO SCORES): 668
PERCENT OF MORTGAGE LOAN POOL WITH FICO SCORE OF MORE THAN 640: 78%
LIEN POSITION: 1st Lien: 0.94%
Junior Lien: 99.06%
GEOGRAPHIC DISTRIBUTION: 47 states
CA: 55.22%
FL: 7.34%
AZ: 5.98%
CO: 5.36%
NV: 4.18%
Other: 21.92%
THE INFORMATION CONTAINED HEREIN WILL BE SUPERSEDED BY THE DESCRIPTION OF THE
COLLATERAL CONTAINED IN THE PROSPECTUS SUPPLEMENT.
[BEAR STEARNS LOGO]
