<PAGE>
FILED PURSUANT TO RULE 424(b)(3)
REGISTRATION NO. 333-04072
SUPPLEMENT TO PROSPECTUS
OF
SOVEREIGN CREDIT FINANCE I, INC.
Sovereign Credit Finance I, Inc., a Texas corporation (the "Company"), is
hereby supplementing its Prospectus dated January 31, 1997 which offers the
Company's 11% notes due February 15, 2001 (the "Notes"). The information
contained herein is intended to supplement that which is included in the
Prospectus at pages 36 and 37 under the heading "INFORMATION REGARDING THE
SECURITIZATION SUBSIDIARIES". Terms used and not defined herein have the same
meanings as in the Prospectus. The date of this Supplement is June 16, 1997.
------------------------------------
INFORMATION REGARDING THE SECURITIZATION SUBSIDIARIES
Since October 1993, Sovereign has sponsored a number of entities (the
"Securitization Subsidiaries") which have issued notes to investors and used the
net proceeds thereof to purchase consumer contracts and notes created by the
retail sale and financing of used automobiles and light trucks. As used herein,
the term "Securitization Subsidiaries" does not include the Company. The
following table sets forth certain information regarding the Securitization
Subsidiaries sponsored by Sovereign from June 1, 1993 (the date SAI began
servicing motor vehicle retail installment sales contracts) through April 30,
1997. There can be no assurance that the future performance of the Contracts
purchased by the Company will be similar to that set forth in the following
table.
<TABLE>
<CAPTION>
Principal Cash Maturity Value Payoff Balance Total
Due Collected for of Active of Active Assets
Name of Investors as Due Quarter ended Contracts as Contracts as as of
Program(1) of 4/30/97 Date(2) 4/30/97 of 4/30/97(3) of 4/30/97(4) 4/30/97(5)
- ---------- ------------ ------- ------------- -------------- -------------- ----------
<S> <C> <C> <C> <C> <C> <C>
SAM 94-1 $ 363,850 07/15/97 $ 14,717 $ 104,606 $ 91,797 $ 87,745
SAM 94-3 $ 710,142 03/31/98 $ 55,905 $ 530,067 $ 433,401 $ 441,392
SAM 95-1 $ 588,036 10/15/98 $ 53,360 $ 495,265 $ 418,902 $ 435,207
SAM 95-2 $ 889,959 03/15/99 $143,586 $1,283,692 $1,041,868 $1,072,168
SA I $ 217,167 05/15/97 $ 884 $ 34,477 $ 25,846 $ 26,564
SA II $ 401,333 07/15/97 $ 9,840 $ 9,315 $ 6,886 $ (25,254)
SA III $ 498,765 08/15/97 $ 46,106 $ 253,000 $ 215,832 $ 219,399
SA IV $ 680,320 09/15/97 $ 56,494 $ 402,950 $ 333,261 $ 329,437
SA V $ 614,537 09/30/97 $ 47,381 $ 431,277 $ 353,723 $ 355,650
SA VI $ 587,000 10/15/97 $ 37,562 $ 341,179 $ 284,665 $ 214,164
SA VII $ 610,500 11/15/97 $ 54,861 $ 458,107 $ 466,738 $ 368,146
SA VIII $ 704,100 12/31/97 $ 54,052 $ 395,701 $ 326,588 $ 326,445
SA IX $ 567,140 01/31/98 $ 61,658 $ 432,785 $ 358,796 $ 367,197
SA X $ 662,000 01/31/98 $ 68,125 $ 511,579 $ 415,270 $ 416,106
SA XI $ 579,000 02/28/98 $ 62,032 $ 400,123 $ 332,618 $ 345,866
SA XII $ 625,000 02/28/98 $ 56,508 $ 415,494 $ 340,493 $ 359,306
SA XIII $ 600,000 03/31/98 $ 54,452 $ 481,228 $ 401,815 $ 609,123
SA XIV $ 526,000 03/31/98 $ 41,459 $ 324,265 $ 278,066 $ 267,800
SA XV $ 612,000 04/30/98 $ 47,538 $ 391,659 $ 319,031 $ 329,384
SA XVI $ 563,000 04/30/98 $ 35,815 $ 219,645 $ 187,247 $ 196,132
SA XVII $ 746,000 05/31/98 $ 45,800 $ 463,011 $ 377,030 $ 391,768
SA XVIII $ 733,053 05/31/98 $ 54,438 $ 557,668 $ 455,612 $ 453,009
SA XIX $ 523,000 06/30/98 $ 24,973 $ 183,131 $ 149,831 $ 149,441
SA XX $ 610,250 06/30/98 $ 53,049 $ 454,489 $ 375,946 $ 377,274
SA XXI $ 606,000 09/15/98 $ 24,613 $ 305,124 $ 248,331 $ 258,162
SA XXII $ 465,000 09/15/98 $ 17,438 $ 214,128 $ 175,277 $ 174,670
SA XXIII $ 509,000 10/15/98 $ 33,385 $ 356,522 $ 295,379 $ 291,797
SA XXIV $ 615,000 10/15/98 $ 55,856 $ 533,367 $ 430,467 $ 429,028
</TABLE>
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<TABLE>
<CAPTION>
Principal Cash Maturity Value Payoff Balance Total
Due Collected for of Active of Active Assets
Name of Investors as Due Quarter ended Contracts as Contracts as as of
Program(1) of 4/30/97 Date(2) 4/30/97 of 4/30/97(3) of 4/30/97(4) 4/30/97(5)
- ---------- ------------ ------- ------------- -------------- -------------- ----------
<S> <C> <C> <C> <C> <C> <C>
SA XXV $ 531,000 11/15/98 $ 38,366 $ 405,383 $ 324,808 $ 332,896
SC I $ 992,000 12/15/98 $ 70,963 $ 690,502 $ 561,833 $ 596,939
SC II $ 767,350 03/15/99 $ 65,215 $ 740,422 $ 610,413 $ 627,052
SC III $ 944,915 03/15/99 $149,790 $1,132,576 $ 920,207 $ 932,790
SC IV $ 79,000 04/15/99 $ 4,076 $ 83,248 $ 65,124 $ 65,344
SC V $1,526,051 05/15/99 $172,918 $2,301,628 $1,580,259 $1,740,625
SC VI $1,018,047 06/15/99 $137,377 $1,324,003 $1,055,173 $1,101,952
SC VII $1,189,140 06/15/99 $183,878 $1,566,239 $1,287,721 $1,319,207
SC VIII $ 925,875 07/15/99 $135,158 $1,125,422 $ 947,298 $ 981,623
SC IX $ 642,500 11/15/99 $103,443 $1,054,331 $ 819,244 $ 860,468
SC X $ 766,888 12/31/99 $109,860 $ 948,155 $ 746,737 $ 833,526
SC XI $ 761,000 12/31/99 $157,063 $1,065,395 $ 861,676 $ 887,599
SC XII $ 751,000 03/31/00 $121,393 $1,047,544 $ 846,581 $ 867,123
SC XIV $1,041,312 03/31/00 $172,043 $1,298,870 $1,058,018 $1,119,968
SC XV $ 649,449 04/30/00 $ 96,446 $1,025,483 $ 803,147 $ 803,900
SC XVI $1,348,890 04/30/00 $210,400 $1,820,412 $1,465,110 $1,502,099
SC XVII $ 601,000 05/31/00 $ 98,080 $ 910,459 $ 700,505 $ 709,440
SC XVIII $1,323,921 06/30/00 $211,020 $2,081,343 $1,491,877 $1,392,803
SC XIX $1,104,829 06/30/00 $151,121 $1,550,986 $1,248,946 $1,266,809
SCXX $1,302,002 08/31/00 $192,742 $2,141,116 $1,644,627 $1,667,284
SCA I $ 833,000 01/15/99 $ 79,810 $ 887,102 $ 753,438 $ 761,617
SCA II $ 540,000 03/15/99 $107,874 $ 736,856 $ 605,673 $ 624,069
SCA III $ 481,000 05/15/99 $ 59,593 $ 619,581 $ 501,491 $ 519,777
(1) Each program is a limited liability company with the exception of Sovereign Acceptance I, which is a limited partnership.
(2) Principal on the notes issued by each program is required to be repaid in six equal monthly installments ending on the due
date.
(3) Maturity Value of Active Contracts represents the sum of all future installments of principal and interest, less amounts owed
to dealers at maturity of the contracts.
(4) Payoff Balance of Active Contracts represents the payoff balance of the contracts as of the date shown.
(5) Total Assets represents the sum of cash on hand, plus Payoff Balance of Active Contracts, plus repossessed vehicles in
inventory awaiting resale, valued at dealers' wholesale.
</TABLE>
Noteholders in certain of the Securitization Subsidiaries have been or
will be asked to reduce interest rates on such notes from 15% to 12% per
annum, and to extend the due dates of their notes for three years in order to
provide the particular Securitization Subsidiary which issued their note more
time to repay principal. Such modifications to those notes were and will be
requested due to the fact that the total assets of those Securitization
Subsidiaries are less than necessary to make all note payments as originally
scheduled. In fact, some of these Securitization Subsidiaries have already
failed to make scheduled payments of principal. In addition, some of these
Securitization Subsidiaries have been unable to make scheduled payments of
interest, and Sovereign Credit Corporation has caused such payments to be
made from its own funds, but has not committed to continue to provide such
payments on behalf of these or any other Securitization Subsidiaries. As of
the date of this Supplement, the note modifications have been requested for
Securitization Subsidiaries with notes due during 1997, and it is anticipated
that such note modifications will be requested for at least some
Securitization Subsidiaries with notes due during 1998. In the event
noteholders in certain of these Securitization Subsidiaries do not elect to
modify their notes as requested, such Securitization Subsidiaries may of
necessity go into default as to those notes. In order to induce the holders
of such notes to agree to such modifications, Sovereign has agreed to place
its profits interest, if any, after all debt repayment, in other
Securitization Subsidiaries into a pool to be applied towards repayment of
such notes (to the extent the assets of the Securitization Subsidiaries that
issued the notes cannot otherwise repay them in full according to the
extended terms). The proceeds of such pool, to the extent available, will be
applied on a pro rata basis to all such notes. Such proceeds will not be
available to Noteholders purchasing Notes pursuant to this offering.
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