<PAGE>
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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 (Date of earliest event reported) November 18, 1996
Advanta Revolving Home Equity Loan Trust 1996-A
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(Exact name of registrant as specified in its charter)
New York 33-99510 Application Pending
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
c/o Advanta Mortgage Conduit 92127
Services, Inc. ----------
Attention: Milton Riseman (Zip Code)
16875 West Bernardo Drive
San Diego, California
(Address of Principal
Executive Offices)
Registrant's telephone number, including area code (619) 674-1800
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(Former name or former address, if changed since last report)
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<PAGE>
Item 5. Other Events
In connection with the offering of Advanta Revolving Home
Equity Loan Trust 1996-A, Revolving Home Equity Loan Asset-Backed Certificates,
Series 1996-A, described in a Prospectus Supplement dated as of November 15,
1996, certain "Computational Materials" within the meanings of the May 20, 1994
Kidder, Peabody No-Action Letter and the February 17, 1995 Public Securities
Association No-Action Letter were furnished to certain prospective investors
(the "Related Computational Materials").
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(a) Not applicable
(b) Not applicable
(c) Exhibit 99.1. Related Computational Materials (as defined in
Item 5 above).
<PAGE>
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.
ADVANTA REVOLVING HOME EQUITY LOAN TRUST
1996-a
By: Advanta Mortgage Conduit Services,
Inc., as Sponsor
By: /s/ Mark T. Dunsheath
-------------------------------
Name: Mark T. Dunsheath
Title: Vice President
Dated: November 18, 1996
<PAGE>
EXHIBIT INDEX
Exhibit No. Description Page No.
- ----------- ----------- --------
99.1 Related Computational 5
Materials (as defined
in Item 5 above).
<PAGE>
EXHIBIT 99.1
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<PAGE>
LEHMAN BROTHERS
DERIVED INFORMATION
$50,000,000 Certificates
ADVANTA REVOLVING HOME EQUITY LOAN TRUST 1996-A
Revolving Home Equity Loan Asset-Backed Certificates
ADVANTA National Bank USA
(Originator)
ADVANTA Mortgage Conduit Services, Inc.
(Sponsor)
ADVANTA Mortgage Corp. USA
(Master Servicer)
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions
specified by the recipient hereof) regarding payments, interest rates, losses
and other matters, including, but not limited to, the assumptions described in
the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any
of the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained
in the Offering Document).
<PAGE>
<TABLE>
<CAPTION>
Securities Offered(1):
------------- ------------ --------------- ------------ --------------------- ------------- ------------ -----------------
Estimated Est. Principal Expected Stated Expected
Expected WAL Pmt. Window Final Final Ratings
Securities Size Benchmark (yrs) (mos) Maturity Maturity (Moody's/S&P)
------------- ------------ --------------- ------------ --------------------- ------------- ------------ -----------------
<S> <C> <C> <C> <C> <C> <C> <C>
To 10% Call $50,000,000 1 Mo. LIBOR 4.61 13 - 111 months 2/25/06 12/25/21 Aaa/AAA
------------- ------------ --------------- ------------ --------------- ------------- ------------ -----------------
To Maturity $50,000,000 1 Mo. LIBOR 4.83 13 - 183 months 2/25/12 12/25/21 Aaa/AAA
------------- ------------ --------------- ------------ --------------- ------------- ------------ -----------------
</TABLE>
(1) The base case pricing assumptions used are 25% CPR and 10% CDR.
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions
specified by the recipient hereof) regarding payments, interest rates, losses
and other matters, including, but not limited to, the assumptions described in
the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any
of the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained
in the Offering Document).
<PAGE>
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LEHMAN BROTHERS
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Sensitivity Analysis
Weighted Average Life and Principal Payment Window
Sensitivity of the Certificates to Payments and Draws
(Assumes 10% Clean Up Call)
Conditional Prepayment Rate (% CPR)
<TABLE>
<CAPTION>
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10% 15% 20% 25% 30% 35% 40%
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Constant Draw WAL Exp. Final WAL Exp. Final WAL Exp. Final WAL Exp. Final WAL Exp. Final WAL Exp. Final WAL Exp. Final
Rate (% CDR) (yrs) (months) (yrs) (months) (yrs) (months) (yrs) (months) (yrs) (months) (yrs) (months) (yrs) (months)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0% 9.35 271 6.44 181 4.90 134 3.83 105 3.11 85 2.59 71 2.20 60
5% 10.16 273 6.98 187 5.36 140 4.27 111 3.44 90 2.84 75 2.40 64
10% 10.83 271 7.39 183 5.66 138 4.61 111 3.78 92 3.11 77 2.61 66
15% 10.04 238 7.84 178 6.00 136 4.88 110 4.13 93 3.43 79 2.86 68
20% 9.95 234 7.37 159 6.39 133 5.18 109 4.37 92 3.79 81 3.15 70
25% 9.90 232 7.30 156 6.07 120 5.53 107 4.65 91 4.01 80 3.50 71
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</TABLE>
Assumes No Clean-up Call
Conditional Prepayment Rate (% CPR)
<TABLE>
<CAPTION>
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10% 15% 20% 25% 30% 35% 40%
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Constant Draw WAL Exp. Final WAL Exp. Final WAL Exp. Final WAL Exp. Final WAL Exp. Final WAL Exp. Final WAL Exp. Final
Rate (% CDR) (yrs) (months) (yrs) (months) (yrs) (months) (yrs) (months) (yrs) (months) (yrs) (months) (yrs) (months)
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0% 9.37 278 6.86 277 5.28 272 4.12 231 3.34 186 2.78 155 2.36 131
5% 10.16 278 7.39 277 5.73 272 4.56 231 3.67 189 3.04 158 2.56 134
10% 10.83 272 7.73 272 5.93 225 4.83 183 3.96 154 3.27 133 2.75 116
15% 10.25 272 8.11 255 6.20 196 5.05 161 4.27 137 3.55 119 2.98 106
20% 10.18 272 7.54 207 6.54 176 5.31 146 4.48 125 3.89 110 3.25 99
25% 10.13 272 7.46 200 6.17 149 5.63 134 4.74 116 4.09 103 3.57 93
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</TABLE>
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions
specified by the recipient hereof) regarding payments, interest rates, losses
and other matters, including, but not limited to, the assumptions described in
the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any
of the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained
in the Offering Document).
<PAGE>
Sensitivity Analysis
Percentage of Original Certificate Principal Balance - - Amortization Schedule
(Assumes 10% Clean Up Call Exercised and a 10% Constant Draw Rate)
(Conditional Prepayment Rate)
<TABLE>
<CAPTION>
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Date 10% 15% 20% 25% 30% 35% 40%
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<S> <C> <C> <C> <C> <C> <C> <C>
At Closing 100% 100% 100% 100% 100% 100% 100%
November 25, 1997 100% 100% 100% 100% 96% 89% 82%
November 25, 1998 100% 94% 89% 83% 74% 63% 54%
November 25, 1999 100% 89% 78% 69% 57% 45% 36%
November 25, 2000 90% 75% 62% 50% 39% 29% 21%
November 25, 2001 80% 63% 48% 37% 27% 18% 12%
November 25, 2002 71% 52% 38% 27% 18% 12% 0%
November 25, 2003 64% 44% 30% 20% 12% 0% 0%
November 25, 2004 57% 37% 24% 15% 0% 0% 0%
November 25, 2005 50% 31% 18% 11% 0% 0% 0%
November 25, 2006 45% 26% 14% 0% 0% 0% 0%
November 25, 2007 40% 22% 11% 0% 0% 0% 0%
November 25, 2008 36% 18% 0% 0% 0% 0% 0%
November 25, 2009 32% 15% 0% 0% 0% 0% 0%
November 25, 2010 28% 12% 0% 0% 0% 0% 0%
November 25, 2011 25% 10% 0% 0% 0% 0% 0%
November 25, 2012 22% 0% 0% 0% 0% 0% 0%
November 25, 2013 20% 0% 0% 0% 0% 0% 0%
November 25, 2014 18% 0% 0% 0% 0% 0% 0%
November 25, 2015 16% 0% 0% 0% 0% 0% 0%
November 25, 2016 14% 0% 0% 0% 0% 0% 0%
November 25, 2017 12% 0% 0% 0% 0% 0% 0%
November 25, 2018 11% 0% 0% 0% 0% 0% 0%
November 25, 2019 0% 0% 0% 0% 0% 0% 0%
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Average Life 10.83 7.39 5.66 4.61 3.78 3.11 2.61
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</TABLE>
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions
specified by the recipient hereof) regarding payments, interest rates, losses
and other matters, including, but not limited to, the assumptions described in
the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any
of the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained
in the Offering Document).
<PAGE>
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LEHMAN BROTHERS
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Collateral Summary
<TABLE>
<S> <C> <C>
Total Number of Loans 1,282
Aggregate Loan Principal Balance $38,501,016.94
Average Loan Principal Balance $30,031.99 $0 - $243,507
Average Credit Limit $31,743.55 $10,000 - $246,000
Average Credit Utilization Rate 94.30% 0.00% - 103.30%
Weighted Average Credit Utilization Rate 94.61%
Weighted Average Coupon (1) 11.40% 7.25% - 16.25%
Weighted Average Margin 3.21% 1.00% - 8.00%
Weighted Average Periodic Cap (per month)* 1.00% 1.00% - 1.00%
Weighted Average Remaining Term (mos) 272 259 - 276
Weighted Average Original Term (mos) 276 276 - 276
Weighted Average Life Cap 19.50% 17.25% - 24.00%
Weighted Average CLTV 74.39% 7.10% - 88.45%
Weighted Average Second Mtg. Ratio 38.43%
(for loans in second lien position only)
Lien Position (first/second) 34.82%/65.18%
Property Type
Single Family 97.06%
Two to Four Family 1.84%
Condo 0.88%
Other 0.22%
Occupancy Status
Owner Occupied / Investment 99.71%/0.29%
Geographic Distribution: NJ 14.74% OH 6.51%
(Other states account individually for less than 5% PA 12.32% MD 6.25%
of the Initial Pool Balance) NY 11.44% VA 5.51%
IL 8.38%
Loan Documentation Full Doc 99.89%
Reduced Doc 0.11%
Credit Class A 69.25%
B 22.30%
C 8.46%
Days Delinquent Current 98.58%
30-59 Days 1.27%
60-89 Days 0.15%
</TABLE>
* Subject to an annual periodic cap of 2%.
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in the light of the
same warnings, lack of assurances and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions
specified by the recipient hereof) regarding payments, interest rates, losses
and other matters, including, but not limited to, the assumptions described in
the Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any
of the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
description of the securities or underlying assets, the information contained
in the Offering Document).
