CONFORMED COPY
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
February 28, 2000
Date of Report ..............................................................
(Date of earliest event reported)
CHRYSLER FINANCIAL COMPANY L.L.C.
.............................................................................
(Exact name of registrant as specified in its charter)
State of Michigan 333-92583 38-2997412
.............................................................................
(State or other jurisdiction (Commission) (IRS Employer
of incorporation) File No.) Identification No.)
27777 Franklin Rd., Southfield, Michigan 48034
..............................................
(Address of principal executive offices)
(248) 948-3067
Registrant's telephone number, including area code...........................
This filing relates to Registration Statement No. 333-92583.
Item 5. Other Events.
In connection with the proposed offering of DaimlerChrysler Auto
Trust 2000-A, Asset Backed Notes, Class A-2, Class A-3 and Class A-4,
attached as Exhibit 99 are certain materials prepared by Chrysler Financial
Company L.L.C. that are required to be filed pursuant to the no-action letter
dated May 20, 1994 issued by the staff of the Securities and Exchange
Commission (the "Commission") to Kidder, Peabody Acceptance Corporation-1,
Kidder, Peabody & Co. Incorporated and Kidder Structured Asset Corporation
and the no-action letter dated February 15, 1995 issued by the staff of the
Commission to the Public Securities Association.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
Listed below are the financial statements, pro forma financial
information and exhibits, if any, filed as a part of this Report:
(a) Financial statements of businesses acquired;
None
(b) Pro forma financial information:
None
(c) Exhibits:
Exhibit 99
- 2 -
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.
CHRYSLER FINANCIAL COMPANY L.L.C.
Date: February 29, 2000 By: /s/ B.C. Babbish
------------------
B.C. Babbish
Assistant Secretary
- 3 -
EXHIBIT INDEX
Exhibit
No. Description of Exhibit
- ------- ----------------------
99 Material prepared by Chrysler Financial Company L.L.C. in
connection with DaimlerChrysler Auto Trust 2000-A pursuant
to the no-action letter dated May 20, 1994 issued by the
staff of the Securities and Exchange Commission (the
"Commission") to Kidder, Peabody Acceptance Corporation-1,
Kidder, Peabody & Co. Incorporated and Kidder Structured
Asset Corporation and the no-action letter dated February
15, 1995 issued by the staff of the Commission to the
Public Securities Association.
- 4 -
EXHIBIT 99
DaimlerChrysler Auto Trust 2000-A Structural and Collateral Materials
DaimlerChrysler
The information contained in the attached materials is referred to
as the "Information".
The attached Term Sheet has been prepared by Chrysler Financial
Company L.L.C. ("CFC"). Neither Chase Securities Inc. ("Chase Securities")
nor any of its affiliates makes any representation as to the accuracy or
completeness of the Information herein. The Information contained herein is
preliminary and will be superseded by the applicable prospectus supplement
and by any other information subsequently filed with the Securities and
Exchange Commission.
The Information contained herein will be superseded by the
description of the collateral pool contained in the prospectus supplement
relating to the securities.
The Information addresses only certain aspects of the applicable
security's characteristics and thus does not provide a complete assessment.
As such, the Information may not reflect the impact of all structural
characteristics of the security. The assumptions underlying the Information,
including structure and collateral, may be modified from time to time to
reflect changed circumstances.
Although a registration statement (including the prospectus)
relating to the securities discussed in this communication has been filed
with the Securities and Exchange Commission and is effective, the final
prospectus supplement relating to the securities discussed in this
communication has not been filed with the Securities and Exchange Commission.
This communication shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any offer or sale of the securities
discussed in this communication in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. Prospective purchasers are
referred to the final prospectus and prospectus supplement relating to the
securities discussed in this communication for definitive Information on any
matter discussed in this communication. Any investment decision should be
based only on the data in the prospectus and the prospectus supplement
("Offering Documents") and the then current version of the Information.
Offering Documents contain data that is current as of their publication dates
and after publication may no longer be complete or current. A final
prospectus and prospectus supplement may be obtained by contacting the Chase
Securities Trading Desk at 212-834-3720.
CHASE SECURITIES INC.
Joint Lead Manager - Joint Bookrunner
Computational Materials
DaimlerChrysler Auto Trust 2000-A Retail Auto ABS
-------------------------------------------------
$1,500,000,000 Retail Auto Asset-Backed Notes
Chrysler Financial Company L.L.C.
Seller and Servicer
$655,000,000 Class A-2 [ ]% Asset-Backed Notes
$405,000,000 Class A-3 [ ]% Asset-Backed Notes
$440,000,000 Class A-4 [ ]% Asset-Backed Notes
Computational
Materials
Neither the Issuer of the Notes nor any of its affiliates make any
representation as to the accuracy or completeness of the information herein.
The information herein is preliminary, and will be superseded by the
applicable prospectus supplement and by any other information subsequently
filed with the Securities and Exchange Commission. The information addresses
only certain aspects of the applicable security's characteristics and thus
does not provide a complete assessment. As such, the information may not
reflect the impact of all structural characteristics of the security. The
assumptions underlying the information, including structure and collateral,
may be modified from time to time to reflect changed circumstances. The
attached term sheet is not intended to be a prospectus and any investment
decision with respect to the Notes should be made by you based solely upon
all of the information contained in the final prospectus. Under no
circumstances shall the information presented constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of the
securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the securities
laws of such jurisdiction. The securities may not be sold nor may an offer to
buy be accepted prior to the delivery of a final prospectus relating to the
securities. All information described herein is preliminary, limited in
nature and subject to completion or amendment. No representation is made that
the above referenced securities will actually perform as described in any
scenario presented. The Depositors have not prepared, reviewed or
participated in the preparation hereof, are not responsible for the accuracy
hereof and have not authorized the dissemination hereof. A final prospectus
and prospectus supplement may be obtained by contacting the Salomon Smith
Barney Syndicate Desk at (212) 723-6171.
The information contained in the attached materials is referred to
as the "Information".
The attached Term Sheet has been prepared by Chrysler Financial
Company L.L.C. ("CFC"). Neither Salomon Smith Barney Inc. ("Salomon") nor any
of its affiliates makes any representation as to the accuracy or completeness
of the Information herein. The Information contained herein is preliminary
and will be superseded by the applicable prospectus supplement and by any
other information subsequently filed with the Securities and Exchange
Commission.
The Information contained herein will be superseded by the
description of the collateral pool contained in the prospectus supplement
relating to the securities.
The Information addresses only certain aspects of the applicable
security's characteristics and thus does not provide a complete assessment.
As such, the Information may not reflect the impact of all structural
characteristics of the security. The assumptions underlying the Information,
including structure and collateral, may be modified from time to time to
reflect changed circumstances.
Although a registration statement (including the prospectus)
relating to the securities discussed in this communication has been filed
with the Securities and Exchange Commission and is effective, the final
prospectus supplement relating to the securities discussed in this
communication has not been filed with the Securities and Exchange Commission.
This communication shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any offer or sale of the securities
discussed in this communication in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. Prospective purchasers are
referred to the final prospectus and prospectus supplement relating to the
securities discussed in this communication for definitive Information on any
matter discussed in this communication. Any investment decision should be
based only on the data in the prospectus and the prospectus supplement
("Offering Documents") and the then current version of the Information.
Offering Documents contain data that is current as of their publication dates
and after publication may no longer be complete or current. A final
prospectus and prospectus supplement may be obtained by contacting the
Salomon Smith Barney Syndicate Desk at 212-723-6171.
$1,500,000,000
DaimlerChrysler Auto Trust 2000-A
CHRYSLER FINANCIAL COMPANY L.L.C.
Seller and Servicer
COMPUTATIONAL MATERIALS
The following 18 pages only may be distributed to potential purchasers
The Computational Materials form MUST accompany every Computational Materials
package.
BEAR, STEARNS & CO. INC.
The information contained in the attached materials is referred to
as the "Information".
The attached Term Sheet has been prepared by Chrysler Financial
Company L.L.C. ("CFC"). Neither Bear, Stearns & Co. Inc. ("Bear Stearns") nor
any of its affiliates makes any representation as to the accuracy or
completeness of the Information herein. The Information contained herein is
preliminary and will be superseded by the applicable prospectus supplement
and by any other information subsequently filed with the Securities and
Exchange Commission.
The Information contained herein will be superseded by the
description of the collateral pool contained in the prospectus supplement
relating to the securities.
The Information addresses only certain aspects of the applicable
security's characteristics and thus does not provide a complete assessment.
As such, the Information may not reflect the impact of all structural
characteristics of the security. The assumptions underlying the Information,
including structure and collateral, may be modified from time to time to
reflect changed circumstances.
Although a registration statement (including the prospectus)
relating to the securities discussed in this communication has been filed
with the Securities and Exchange Commission and is effective, the final
prospectus supplement relating to the securities discussed in this
communication has not been filed with the Securities and Exchange Commission.
This communication shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any offer or sale of the securities
discussed in this communication in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. Prospective purchasers are
referred to the final prospectus and prospectus supplement relating to the
securities discussed in this communication for definitive Information on any
matter discussed in this communication. Any investment decision should be
based only on the data in the prospectus and the prospectus supplement
("Offering Documents") and the then current version of the Information.
Offering Documents contain data that is current as of their publication dates
and after publication may no longer be complete or current. A final
prospectus and prospectus supplement may be obtained by contacting the Bear
Stearns Trading Desk at 212-272-4955.
General Information: The data underlying the Information has been
obtained from sources that we believe are reliable, but we do not guarantee
the accuracy of the underlying data or computations based thereon. Bear
Stearns and/or individuals thereof may have positions in these securities
while the Information is circulating or during such period may engage in
transactions with the issuer or its affiliates. We act as principal in
transactions with you, and accordingly, you must determine the
appropriateness for you of such transactions and address any legal, tax or
accounting considerations applicable to you. Bear Stearns shall not be a
fiduciary or advisor unless we have agreed in writing to receive compensation
specifically to act in such capacities. If you are subject to ERISA, the
Information is being furnished on the condition that it will not form a
primary basis for any investment decision. The Information is not a
solicitation of any transaction in securities which may be made only by
prospectus when required by law, in which event you may obtain such
prospectus from Bear Stearns by calling the telephone number listed above.
[Bear Sterns Logo]
The information contained in the attached materials is referred to
as the "Information".
The attached Term Sheet has been prepared by Chrysler Financial
Company L.L.C. ("CFC"). Neither Merrill Lynch, Pierce, Fenner & Smith
Incorporated ("Merrill Lynch") nor any of its affiliates makes any
representation as to the accuracy or completeness of the Information herein.
The Information contained herein is preliminary and will be superseded by the
applicable prospectus supplement and by any other information subsequently
filed with the Securities and Exchange Commission.
The Information contained herein will be superseded by the
description of the collateral pool contained in the prospectus supplement
relating to the securities.
The Information addresses only certain aspects of the applicable
security's characteristics and thus does not provide a complete assessment.
As such, the Information may not reflect the impact of all structural
characteristics of the security. The assumptions underlying the Information,
including structure and collateral, may be modified from time to time to
reflect changed circumstances.
Although a registration statement (including the prospectus)
relating to the securities discussed in this communication has been filed
with the Securities and Exchange Commission and is effective, the final
prospectus supplement relating to the securities discussed in this
communication has not been filed with the Securities and Exchange Commission.
This communication shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any offer or sale of the securities
discussed in this communication in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. Prospective purchasers are
referred to the final prospectus and prospectus supplement relating to the
securities discussed in this communication for definitive Information on any
matter discussed in this communication. Any investment decision should be
based only on the data in the prospectus and the prospectus supplement
("Offering Documents") and the then current version of the Information.
Offering Documents contain data that is current as of their publication dates
and after publication may no longer be complete or current. A final
prospectus and prospectus supplement may be obtained by contacting the
Merrill Lynch Trading Desk at 212-449-3659.
The information contained in the attached materials is referred to
as the "Information".
The attached Term Sheet has been prepared by Chrysler Financial
Company L.L.C. ("CFC"). Neither Morgan Stanley & Co. Incorporated ("Morgan
Stanley") nor any of its affiliates makes any representation as to the
accuracy or completeness of the Information herein. The Information contained
herein is preliminary and will be superseded by the applicable prospectus
supplement and by any other information subsequently filed with the
Securities and Exchange Commission.
The Information contained herein will be superseded by the
description of the collateral pool contained in the prospectus supplement
relating to the securities.
The Information addresses only certain aspects of the applicable
security's characteristics and thus does not provide a complete assessment.
As such, the Information may not reflect the impact of all structural
characteristics of the security. The assumptions underlying the Information,
including structure and collateral, may be modified from time to time to
reflect changed circumstances.
Although a registration statement (including the prospectus)
relating to the securities discussed in this communication has been filed
with the Securities and Exchange Commission and is effective, the final
prospectus supplement relating to the securities discussed in this
communication has not been filed with the Securities and Exchange Commission.
This communication shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any offer or sale of the securities
discussed in this communication in any state in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state. Prospective purchasers are
referred to the final prospectus and prospectus supplement relating to the
securities discussed in this communication for definitive Information on any
matter discussed in this communication. Any investment decision should be
based only on the data in the prospectus and the prospectus supplement
("Offering Documents") and the then current version of the Information.
Offering Documents contain data that is current as of their publication dates
and after publication may no longer be complete or current. A final
prospectus and prospectus supplement may be obtained by contacting the Morgan
Stanley Trading Desk at 212-761-2248.
DaimlerChrysler
DAIMLERCHRYSLER AUTO TRUST 2000-A
CHRYSLER FINANCIAL COMPANY L.L.C., Seller and Servicer
Subject to Revision
Term Sheet dated February 28, 2000
The trust will issue $1,982,783,000 of securities backed by automobile
and light duty truck receivables purchased directly from Chrysler Financial
Company L.L.C.
Total Securities Issued
Fixed Per Annum
Security Principal Amount Interest Rate Legal Final
- -------- ---------------- --------------- -----------
A-1 Notes $408,429,000.00 ___ % January 6, 2001
A-2 Notes $655,000,000.00 ___ % January 6, 2003
A-3 Notes $405,000,000.00 ___ % December 6, 2003
A-4 Notes $440,000,000.00 ___ % January 6, 2005
Certificates(1) $74,354,000.00 n/a n/a
(1) The certificates are subordinated, bear no interest, and have no
maturity date.
<TABLE>
<CAPTION>
Initial Credit Enhancement for the Notes (1)
Certificates(2)
Overcollateralization (Subordinated) Reserve Fund Total
--------------------- -------------- ------------ -----
<S> <C> <C> <C> <C>
Amount $94,182,804.62 $74,354,000.00 $4,956,957.50 $173,493,762.12
Percentage of Total
Securities 4.75% 3.75% 0.25% 8.75%
<FN>
(1) The expected excess cash flows generated from the difference
between the interest collections on all the receivables and the sum
of the servicing fee, the interest payments on the outstanding
securities and required reserve fund deposits could also provide
credit enhancement.
(2) The certificates do not bear interest.
</TABLE>
TABLE OF CONTENTS
Section Page
------- ----
o TRANSACTION ILLUSTRATION 3
o PARTIES TO THE TRANSACTION 4
o SECURITIES ISSUED 5
o RECEIVABLES POOL 5
- Composition of the
Receivables Pool 6
- New/Used Distribution 6
- Distribution by APR 7
- Geographic Distribution 8
- Selection Criteria 9
o NET CREDIT LOSS AND
DELINQUENCY EXPERIENCE 9
- CFC Net Credit Loss and
Repossession Experience 10
- CFC Delinquency Experience 11
o PAYMENTS ON THE SECURITIES 11
- Payment Dates 11
- Interest Payments 11
- Principal Payments 12
- Optional Redemption 13
o FLOW OF FUNDS 13
- Sources of Funds Available
for Distribution 13
- Application of Available
Funds 14
o CREDIT ENHANCEMENT 15
- Overcollateralization 15
- Excess Interest Collections 16
- Reserve Fund 16
- Subordinated Certificates 17
o SERVICING 17
- Compensation 17
2
TRANSACTION ILLUSTRATION
on or before March 8, 2000
(approximate $ thousands)
CHRYSLER FINANCIAL COMPANY L.L.C.
[Seller and Servicer]
| | |
| | |
| | |
DAIMLERCHRYSLER RETAIL RECEIVABLES LLC | |
[Special Purpose Entity] | |
| | | $2,076,966 | $4,957
| | | receivables | reserve
| | | | fund
| Overcollateralization | |
| $94,183 | |
| | |
| Bank One,
| N.A.
Certificates (1) ___ DaimlerChrysler Auto Trust 2000-A ___ [Indenture
$74,354 [ Issuer ] Trustee]
| | |
| | |
CHASE MANHATTAN A-2 Notes
BANK DELAWARE A-1 Notes $655,000
[Owner Trustee] $408,429
A-3 Notes
$405,000
A-4 Notes
$440,000
- ---------
(1) The certificates are subordinated.
3
PARTIES TO THE TRANSACTION
Entity Description
------ -----------
DaimlerChrysler Auto o Issuer of the securities
Trust 2000-A
o A Delaware business trust
o Principal office is in Wilmington, Delaware
Chrysler Financial Company o Seller of the receivables to the trust
L.L.C. ("CFC")
o Servicer of the receivables
o An indirect wholly-owned subsidiary of
DaimlerChrysler AG
o A Michigan limited liability company
o Originator of CFC receivables
Bank One, N.A.(1) o Indenture trustee
o Performs duties for the benefit of the
noteholders
Chase Manhattan o Owner trustee
Bank Delaware(1)
o Performs duties on behalf of the trust and
certificateholders
DaimlerChrysler Retail o A special-purpose financing entity
Receivables LLC
o A Michigan limited liability
company, formerly named
Premier Receivables L.L.C.
o An indirect wholly-owned subsidiary of
CFC
o Initial holder of the subordinated
certificates
o Initial owner of rights to
overcollateralization distributions and
residual cash flows
- ----------
(1) The seller and its affiliates may maintain normal commercial banking
relations with the indenture trustee, the owner trustee and their
affiliates.
4
SECURITIES ISSUED
The trust will issue $1,982,783,000 of securities, comprised of both notes
and certificates.
Total Securities Issued
Fixed Per Annum
Security Principal Amount Interest Rate Legal Final
- -------- ---------------- --------------- -----------
A-1 Notes $408,429,000 ___ % January 6, 2001
A-2 Notes $655,000,000 ___ % January 6, 2003
A-3 Notes $405,000,000 ___ % December 6, 2003
A-4 Notes $440,000,000 ___ % January 6, 2005
Certificates(1) $74,354,000 n/a n/a
- --------
(1) The certificates are subordinated, bear no interest, and have no
maturity date.
Other points to consider include:
o the outstanding principal of each class of notes is due by its maturity
date (each a "Legal Final"),
o the offered securities will be issued on or about March 8, 2000 in
book-entry form through the facilities of the Depository Trust Company,
Clearstream, Luxembourg, and the Euroclear System, and
o by March 8, 2000, two nationally recognized rating agencies will rate the
offered securities in the highest investment rating category.
RECEIVABLES POOL
On March 8, 2000, the trust will use the proceeds from the issuance of
the securities to purchase a pool of automobile and light duty truck
receivables from the seller. Collections on this pool of receivables will be
the trust's principal source of funds for making payments on the securities.
The following information about the receivables is as of February 18, 2000
(the "Cut-off Date").
5
The receivables pool had the following characteristics:
Composition of the Receivables Pool
As of February 18, 2000
Aggregate Principal Balance $2,076,965,804.62
Number of Receivables 134,795
Average Principal Balance $15,408.33
Weighted Average APR 9.02%
Weighted Average Original Term 60.22 months
Weighted Average Remaining Term 55.21 months
Weighted Average Seasoning 5.01 months
As a Percentage of the Aggregate
Principal Balance:
Receivables with Recourse to Dealers 1.54%
The receivables pool had the following new vehicle/used vehicle distribution:
New/Used Distribution of the Receivables Pool
As of February 18, 2000
New Used
--- ----
Aggregate Principal Balance $1,584,010,622.02 $492,955,182.60
Percentage of Aggregate Principal Balance 76.27% 23.73%
Number of Receivables 94,036 40,759
Percentage of Receivables 69.76% 30.24%
6
The receivables pool had the following distribution by APR:
Distribution by APR of the Receivables Pool
As of February 18, 2000
Number of Aggregate Percent of Aggregate
APR Range Receivables Principal Balance Principal Balance(1)
- --------- ----------- ----------------- --------------------
0.00% to 5.00% 13,610 $ 254,456,114.74 12.3%
5.01% to 6.00% 4,687 92,891,084.68 4.5%
6.01% to 7.00% 3,343 45,478,296.61 2.2%
7.01% to 8.00% 18,310 293,190,658.08 14.1%
8.01% to 9.00% 23,221 366,367,543.23 17.6%
9.01% to 10.00% 20,824 324,506,696.63 15.6%
10.01% to 11.00% 13,844 206,963,680.25 10.0%
11.01% to 12.00% 11,111 158,176,887.08 7.6%
12.01% to 13.00% 8,208 112,007,417.62 5.4%
13.01% to 14.00% 5,271 69,881,468.86 3.4%
14.01% to 15.00% 3,340 42,544,751.05 2.0%
15.01% to 16.00% 2,315 29,156,025.17 1.4%
16.01% to 17.00% 1,746 21,951,169.87 1.1%
17.01% to 18.00% 2,848 36,551,964.88 1.8%
18.01% to 19.00% 601 6,769,420.63 0.3%
19.01% to 20.00% 1,435 15,288,080.64 0.7%
Greater than 20.00% 81 784,544.60 0.0%
Totals 134,795 $2,076,965,804.62 100.0%
(1) Percentages may not add to 100.0% because of rounding.
7
The following table lists the ten states with the largest percentage
concentration of the aggregate principal balance of the receivables pool
based on the physical address of the dealer originating the receivable. No
other state accounts for more than 2.8% of the aggregate principal balance of
the receivables pool as of February 18, 2000.
Geographic Distribution of the Receivables Pool
As of February 18, 2000
Percentage of Aggregate
State Principal Balance (1)
----- -----------------------
Texas 9.3%
Pennsylvania 7.7%
California 6.6%
New York 6.5%
Florida 5.3%
Maryland 5.3%
Illinois 5.2%
Georgia 3.5%
Michigan 3.5%
Virginia 2.9%
All Other 44.2%
Total 100.0%
(1) Percentages may not add to 100.0% because of rounding.
8
Selection Criteria
We used the following criteria to select the receivables pool:
o Each receivable was originally purchased by the seller from
dealers in the ordinary course of its business.
o Interest on each receivable is computed using the simple
interest method.
o As of February 18, 2000:
- no receivable was more than 30 days past due (an account is
not considered past due if the amount past due is less than
10% of the scheduled monthly payment);
- no receivable was the subject of a bankruptcy proceeding;
- each receivable had a principal balance of at least $300.00;
and
- each receivable had a scheduled maturity on or before
February 28, 2006.
The seller believes its selection procedures are not adverse to
securityholders.
NET CREDIT LOSS AND DELINQUENCY EXPERIENCE
Net credit loss experience is dependent upon general economic
conditions, the number of repossessions, the amount of principal and accrued
interest outstanding on the receivable at the time of repossession, and the
resale values of the repossessed vehicles.
The following tables detail the net credit loss, repossession and
delinquency experience of CFC's United States portfolio of new and used
automobile and light duty truck retail receivables. The information includes:
o an immaterial amount of retail receivables secured by vehicles
other than automobiles and light duty trucks, and
o previously sold contracts which CFC continues to service.
Unless otherwise indicated, all amounts and percentages are based on
estimated gross collections, including principal and interest.
We cannot assure you that the delinquency, repossession and net credit
loss experience on the receivables sold to the trust will be comparable to
the following historical experience.
9
<TABLE>
<CAPTION>
CFC Net Credit Loss and Repossession
Experience ($ Millions)
Year Ended December 31,
---------------------------------------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Average Amount Outstanding
During the Period $ 26,191 $ 23,581 $ 21,485 $ 21,062 $ 19,486
Average Number of Contracts
Outstanding During the Period 1,835,534 1,747,846 1,688,525 1,671,405 1,572,963
Repossessions as a Percentage of
Average Number of Contracts
Outstanding 2.16% 2.77% 3.40% 3.82% 3.05%
Net Credit Losses as Percentage
of Liquidations (1) (2) 1.91% 2.77% 3.36% 3.17% 2.25%
Net Credit Losses as a Percentage
of Average Amount
Outstanding (1) 0.98% 1.39% 1.80% 1.68% 1.16%
<FN>
- ----------
(1) Net credit losses are equal to the aggregate of the balances of all
receivables which are determined to be uncollectible in the period,
less any amounts realized from the sale of repossessed vehicles and any
recoveries on receivables charged off in the current or prior periods,
net of any disposition expenses and any dealer commissions which CFC
failed to recover on receivables that were prepaid or charged off.
(2) Liquidations represent monthly cash payments and charge-offs which
reduce the outstanding balance of a receivable.
</TABLE>
10
<TABLE>
<CAPTION>
CFC Delinquency Experience
($ Millions)
At December 31,
-----------------------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Portfolio $ 27,255 $ 24,854 $ 21,879 $ 21,197 $ 20,913
Delinquencies as a
Percentage of the Portfolio
31 - 60 Days 1.78% 2.27% 3.24% 3.98% 3.44%
61 Days or More 0.17% 0.20% 0.46% 0.55% 0.48%
Total 1.95% 2.47% 3.70% 4.53% 3.92%
</TABLE>
PAYMENTS ON THE SECURITIES
Payment Dates
o Interest and principal will be payable on the 6th of each
month. If the 6th is not a business day, then interest and
principal will be payable on the next business day.
o The first payment will be on April 6, 2000.
o Payments will be payable to securityholders of record on the
business day before the payment date.
Interest Payments
o The first interest payment will be calculated on the original
principal amount of each class of notes at the applicable per
annum interest rate.
o Subsequent interest payments will be calculated on the
outstanding principal balance of each note class as of the
prior payment date (after giving effect to any payment of
principal on that date) at the applicable per annum interest
rate.
o To calculate interest due on the A-1 notes on a payment date,
the per annum interest rates will be converted from an annual
rate as follows:
11
Days in Initial Interest Days in Subsequent Day Count
Accrual Period Interest Accrual Periods Convention
- ------------------------ ------------------------ ----------
From To
(including) (excluding)
----------- -----------
prior current
29 days payment payment actual/360
date date
o To calculate the interest due on the A-2, A-3 and A-4 notes on
a payment date, the per annum interest rates will be converted
from an annual rate as follows:
Days in Initial Interest For Subsequent Interest Day Count
Accrual Period Accrual Periods Convention
- ------------------------ ----------------------- ----------
1/12th of per annum
28 days interest rate 30/360
o Interest payments on all classes of notes will have the same
priority. If the available amount for interest payments,
including the balance in the reserve fund, is less than the
amount due, each class of notes will receive their pro rata
share.
Refer to the "Flow of Funds" section for information on how the amount
available for interest payments is determined. Also refer to the "Credit
Enhancement - Reserve Fund" section for information on how the reserve fund
may be used to make interest payments.
Principal Payments
o The amount of principal payments on the securities on each
payment date will generally equal the amount of principal that
was collected on the receivables during the prior calendar
month plus Excess Interest Collections.
o Principal of each class of notes will generally be repaid over
a span of several consecutive months.
o The trust will pay principal sequentially to the earliest
maturing class of notes then outstanding until such class is
paid in full.
o The certificates will not receive any principal payments until
all notes are paid in full.
o The trust is required to pay the outstanding principal of each
class of notes by the applicable Legal Final.
o The final principal payment on any class of notes could occur
significantly earlier than its Legal Final.
o The rate of principal payment on the notes will increase to
the extent Excess Interest Collections are applied to pay note
principal.
12
Refer to the "Flow of Funds" section for information on how the amount
available for principal payments is determined. Refer to the "Credit
Enhancement" section for information on Excess Interest Collections.
Optional Redemption
The servicer will have the option to purchase all of the remaining
receivables from the trust when their aggregate principal balance declines to
an amount that is less than or equal to 10% of the initial aggregate
principal balance of the receivables, or $207,696,580 or less. If the
servicer decides to exercise this option, then the outstanding principal
amounts of the A-4 notes and the certificates, together with any accrued and
unpaid interest, will be repaid in a lump sum payment. The lump sum payment
under this optional redemption will shorten the maturity of the A-4 notes and
certificates.
FLOW OF FUNDS
Sources of Funds Available for Distribution
Funds from the following sources may be available to make payments on
the securities on each payment date:
o collections received on the receivables during the prior
calendar month,
o net recoveries received during the prior calendar month on
receivables that were charged off as losses in prior months,
o investment earnings on the reserve fund received during the
prior calendar month,
o administrative and/or warranty repurchases, and
o the reserve fund.
13
Application of Available Funds
On each monthly payment date the total funds available (except for the
reserve fund) will be distributed in the following order of priority:
Monthly Flow of Funds
pay servicing fee
|
pay accrued interest on the notes
|
replenish reserve fund, if
necessary, up to the initial amount
|
pay up to the outstanding principal
amount of the A-1 notes
|
pay the overcollateralization
distribution amount, if any, to DaimlerChrysler
Retail Receivables LLC
|
pay up to the outstanding principal
amount of the A-2 notes
|
pay up to the outstanding principal
amount of the A-3 notes
|
pay up to the outstanding principal
amount of the A-4 notes
|
pay up to the outstanding principal
amount of the certificates
|
distribute remaining balance, if any, to
DaimlerChrysler Retail Receivables LLC
14
CREDIT ENHANCEMENT
The following forms of credit enhancement are intended to enhance the
likelihood of full payment of principal and interest due to the noteholders
and to decrease the likelihood that the noteholders will experience losses of
principal or interest on their notes.
Overcollateralization
Overcollateralization is represented by the principal balance of
receivables in excess of the principal balance of the securities. The initial
overcollateralization amount of $94,182,804.62 is equal to the initial
receivables balance of $2,076,965,804.62 minus the initial principal amount
of the securities of $1,982,783,000.00. This excess collateral is intended to
protect noteholders from losses on the receivables. It is expected that
overcollateralization will absorb all losses, and that overcollateralization
may even increase over time.
For any month, overcollateralization will increase if principal
payments on the securities are greater than collections of principal payments
on the receivables. This occurs when Excess Interest Collections are used to
make principal payments on the securities.
Refer to the "Excess Interest Collections" section below for additional
information on Excess Interest Collections. Distribution of Initial
Overcollateralization
The trust will distribute the initial overcollateralization amount to
DaimlerChrysler Retail Receivables LLC. As illustrated in the "Application of
Available Funds" section, the trust may begin to distribute the initial
overcollateralization amount on the same payment date on which the A-1 notes
are paid in full. The trust will continue to make distributions until the
initial overcollateralization amount is fully distributed. No
overcollateralization distribution will be made in any month the balance of
the reserve fund is below $4,956,957.50. The amount to be distributed on each
payment date will be the greater of:
(i) $0.00
or
(ii) the lesser of (a) D - [S - (P X 94.75%)] or (b) D minus the A-1 notes
principal payment for the current payment date
where:
| accrued |
total funds available | servicing interest reserve |
D = for distribution (except minus | fee + on the + fund deposit |
for the reserve fund) | notes |
the outstanding principal amount of the securities as of the
S = prior payment date, after giving effect to payments made on that
date
15
the outstanding principal balance of the receivables as of
P = the prior calendar month end.
The purpose of the above calculation is to maintain the
overcollateralization amount at least at 5.25% of the outstanding principal
balance of the receivables as of the prior calendar month end on any payment
date in the distribution period. The sum of the monthly overcollateralization
distributions over the life of the transaction will not exceed the initial
overcollateralization amount.
Excess Interest Collections
"Excess Interest Collections" are equal to (A) the sum of (i) interest
collections received on the receivables during the prior calendar month and
(ii) investment earnings on the reserve fund received during the prior
calendar month minus (B) the sum of (i) the servicing fee for the prior
calendar month, (ii) accrued interest on the notes, (iii) the amount, if any,
required to replenish the reserve fund to $4,956,957.50, and (iv) the
overcollateralization distribution made to DaimlerChrysler Retail Receivables
LLC, if any.
Excess Interest Collections provide an additional form of credit
enhancement when used to make principal payments on the securities. As
described in the "Overcollateralization" section above, the use of Excess
Interest Collections to pay principal on the securities will cause the
outstanding principal amount of the securities to decrease faster than the
principal balance of the receivables, thereby increasing the amount of
overcollateralization.
As credit losses on receivables and delinquent receivables decrease the
amount of interest collections received on the receivables in a month, Excess
Interest Collections will be reduced or eliminated for such month. In
addition, during the overcollateralization distribution period, Excess
Interest Collections will be reduced or eliminated.
Reserve Fund
o On March 8, 2000, the seller will provide funds from the
proceeds of its sale of receivables to establish a
$4,956,957.50 reserve fund.
o The indenture trustee will hold the reserve fund for the
benefit of the noteholders.
o The reserve fund will be invested in high quality, short term
investments which mature on or prior to each monthly payment
date.
o If the total funds available for distribution minus the
servicing fee is less than accrued interest on the notes, the
reserve fund will be available to make interest payments.
o If a class of notes has not been paid in full on its Legal
Final, the reserve fund will be applied to the payment of
principal for that class of notes.
o If the aggregate outstanding principal amount of the notes
exceeds the outstanding principal balance of the receivables
as of the prior calendar month end, the reserve fund will be
applied to the payment of principal of the notes.
16
o As illustrated in the "Flow of Funds" section above, on each
payment date the reserve fund will be reinstated up to the
initial balance to the extent funds are available.
o After full payment of all accrued interest on the notes and
the outstanding principal balance of the securities, the
reserve fund will be distributed to DaimlerChrysler Retail
Receivables LLC.
Subordinated Certificates
As additional credit enhancement, the certificates do not bear interest
and will not receive any principal payments until the notes are paid in full.
The payments on the certificates are subordinated to payments on the notes to
decrease the likelihood that the trust will default in making payments due on
the notes.
SERVICING
Compensation
o The servicer will be compensated on a monthly basis.
o The first servicing fee will be calculated on the original
principal amount of the receivables at 1.00% per annum.
o For the first servicing fee calculation, the per annum
servicing fee rate will be converted from an annual rate using
the number of days from February 18, 2000 to March 31, 2000 on
a 30/360 basis, or 43 days over 360.
o Subsequent servicing fees will be calculated on the principal
balance of the receivables as of the first day of the prior
calendar month at 1/12th of 1.00%.
o As illustrated in the "Flow of Funds" section above, the
servicing fee will be paid out of the total funds available
for distribution each month.
17
