<PAGE>
- --------------------------------------------------------------------------------
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) February 19, 1999
IKON Receivables, LLC
_____________________________________________________
(Exact name of registrant as specified in its charter)
<TABLE>
<S> <C> <C>
Delaware 333-71073 23-2990188
- ------------------------------- ----------------- --------------------
(State or Other Jurisdiction of (Commission File (I.R.S. Employer
Incorporation) Number) Identification No.)
1738 Bass Road
P.O. Box 9115
Macon, Georgia 31208
(Address of Principal ----------
Executive Offices) (Zip Code)
</TABLE>
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
- --------------------------------------------------------------------------------
<PAGE>
Item 5. Other Events
------------
In connection with the offering of IKON Receivables, LLC Lease-Backed
Notes, Series 1999-1, described in a Preliminary Prospectus Supplement dated as
of May 7, 1999, 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.
IKON Receivables, LLC
By: IKON Receivables Funding, Inc., as Manager
By: /s/ Robert K. McLain
-----------------------
Name: Robert K. McLain
Title: President
Dated: May 11, 1999
<PAGE>
EXHIBIT INDEX
-------------
Exhibit No. Description Page No.
- ----------- ----------- --------
99.1 Related Computational Materials (as 5
defined in Item 5 above).
<PAGE>
EXHIBIT 99.1
TERM SHEET DATED May 11, 1999
IKON Receivables, LLC
Lease-Backed Notes, 1999-1
IOS Capital, Inc.
[LOGO] IOSCapital
An IKON Office Solutions Company
$752,930,000 (Approximate)
- --------------------------------------------------------------------------------
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 (the "Offering Document"). Information contained
herein does not purport to be complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in 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
<PAGE>
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
descriptions of the securities or underlying assets, the information contained
in the Offering Document).
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
<PAGE>
TERM SHEET DATED May 11, 1999
IKON Receivables, LLC
Lease-Backed Notes, 1999-1
IOS Capital, Inc.
$752,930,000 (Approximate)
ORIGINATOR/SERVICER: IOS Capital, Inc. ("IOS Capital").
TRUSTEE: Harris Trust and Savings Bank.
INSURER: Ambac Assurance Corporation.
UNDERWRITERS: Lehman Brothers Inc. is Lead Manager. Co-Managers are
Chase Securities Inc., Duetsche Bank Securities and PNC
Capital Markets, Inc.
The following table uses the Modeling Assumptions:
<TABLE>
<CAPTION>
Expected WAL Principal Final
Approx. Ratings (Maturity/10% Call) Window Maturity ERISA
Securities Size (S&P / Moody's) @ 0.0% CPR (1) (Maturity/10% Call) (Expected/Legal) Eligible
===============================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Class A-1 $304,702,000 A-1+ / P-1 0.44 yrs. / 0.44 yrs. 1-11 mos. / 1-11 mos. Apr 2000 / Jun 2000 Yes
(2)
- -------------------------------------------------------------------------------------------------------------------------------
Class A-2 $ 62,227,000 AAA / AAA 1.08 yrs. / 1.08 yrs. 11-15 mos. / 11-15 mos. Aug 2000 / May 2005 Yes
- -------------------------------------------------------------------------------------------------------------------------------
Class A-3 $300,172,000 AAA / AAA 2.00 yrs. / 2.00 yrs. 15-36 mos. / 15-36 mos. May 2002 / May 2005 Yes
- -------------------------------------------------------------------------------------------------------------------------------
Class A-4 $ 85,829,000 AAA / AAA 3.50 yrs. / 3.14 yrs. 36-50 mos. / 36-38 mos. Jul 2003 / May 2005 Yes
===============================================================================================================================
</TABLE>
___________
(1) The Securities will be priced to Maturity at 0.0% CPR.
(2) The Class A-1 Notes will be 2a-7 Money Market Eligible.
The information set forth herein is based upon the timely receipt of scheduled
Lease Payments, assumes the Closing Date is May 20, 1999, the first Payment Date
is June 15, 1999, distributions on the Notes are made on the fifteenth day of
each month (regardless of the day on which the Payment Date actually occurs), no
delinquencies or defaults in the payment of principal and interest on the Leases
are experienced, no Lease is repurchased for breach of representation or
warranty or otherwise, payments on the Leases are received on the last day of
each Collection Period, the Servicing Fee is 0.75%, the "Initial Statistical
Principal Amount" of the Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, and
Class A-4 Notes is $304,702,000, $62,227,000, $300,172,000 and $85,829,000,
respectively, the "Statistical Class Percentage" for the Class A Notes is equal
to 84.271291%, the Asset Pool consists of a single Lease with an aggregate
discounted present value of $836,588,950.91 on which interest is accrued at a
discount rate equal to 6.97%, and the Issuer does not exercise its option to
redeem the Notes (collectively, the "Modeling Assumptions").
FOR INFORMATION CONCERNING CERTAIN RISK FACTORS THAT SHOULD BE CONSIDERED BY
PROSPECTIVE INVESTORS, SEE "RISK FACTORS" IN THE PROSPECTUS SUPPLEMENT AND
PROSPECTUS. CAPITALIZED TERMS USED HEREIN AND NOT OTHERWISE DEFINED HAVE THE
MEANINGS SET FORTH IN THE PROSPECTUS AND PROSPECTUS SUPPLEMENT.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
1
<PAGE>
CUT-OFF DATE: The opening of business on April 1, 1999.
STATED MATURITY DATE: Class A-1: Payment Date occurring in June 2000.
Class A-2, Class A-3 and Class A-4: Payment Date
occurring in May 2005.
EXP. PRICING: Week of May 10, 1999 or May 17, 1999.
EXP. SETTLEMENT: Week of May 17, 1999. Settles flat.
PAYMENT DATE: The 15th day of each month (or if such date is not a
business day, the immediately succeeding business day),
commencing June 15, 1999.
ERISA: Subject to the conditions set forth in the Prospectus
Supplement, the Class A Notes are ERISA eligible.
TAX TREATMENT: For federal income tax purposes, the Class A Notes will
be characterized as debt.
OPTIONAL REDEMPTION: The Issuer may redeem the Notes when the Discounted
Present Value of the Leases is less than or equal to 10%
of the Discounted Present Value of the Leases as of April
1, 1999.
CREDIT ENHANCEMENT: Initially 11.0% in aggregate consisting of (i)
subordination of the Overcollateralization Balance
(10.0%) and (ii) the Reserve Account (1.0%). The Issuer
will obtain a noncancellable insurance policy from Ambac
Assurance Corporation with respect to the Notes, which
will unconditionally and irrevocably guarantee timely
payment of interest and ultimate payment of principal,
but subject to specific terms and conditions set forth in
the Prospectus Supplement.
RESERVE ACCOUNT: The Trustee will establish and maintain the Reserve
Account as an Eligible Account. On the Issuance Date, the
Issuer will make an initial deposit to the Reserve
Account in an amount equal to 1.0% of the Discounted
Present Value of the Leases as of the Cut-Off Date. The
Reserve Account Required Amount will be the lesser of
1.0% of the Discounted Present Value of the Lease as of
the Cut-Off Date and the outstanding Principal Amount of
the Notes.
THE ASSET POOL: The Statistical Discounted Present Value of the Leases as
of the Cut-off Date is $836,231,906.15 using the
Statistical Discount Rate of 7.00% per annum.
SUBSTITUTIONS: The aggregate Discounted Present Value of the Non-
Performing Leases for which IOS Capital may substitute
Substitute Leases is limited to an amount not in excess
of 10% of the aggregate Discounted Present Value of the
Leases as of the Cut-Off Date. The aggregate Discounted
Present Value of Adjusted Leases and Warranty Leases for
which IOS Capital may substitute Substitute Leases is
limited to an amount not in excess of 10% of the
aggregate Discounted Present Value of the Leases as of
the Cut-Off Date.
PAYMENT PRIORITY: Available Funds will be used to make payments in the
following priority: (i) Insurance Policy Premium, (ii)
Servicing Fee, (iii) unreimbursed Servicer Advances, (iv)
Class A interest, (v) reimbursements to the Insurer, (vi)
Class A principal (sequential principal pay to A-1, A-2,
A-3, and A-4), (vii) Additional Principal, if any, (viii)
Reserve Account, if necessary, and (ix) excess to the
Issuer.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
2
<PAGE>
ACCELERATION EVENT: An "Acceleration Event" will occur if (i) a Servicer Event
of Default has occurred and is continuing, (ii) with
respect to any Payment Date, the Overcollateralization
Balance is less than or equal to the Overcollateralization
Floor, (iii) for any three consecutive Due Periods, the
average of the Annualized Default Rates for those Due
Periods is greater than 6.25%; or (iv) for any three
consecutive Due Periods, the average of the Delinquency
Rates for those Due Periods is greater than 8.00%.
If an Acceleration Event has occurred, Additional Principal
will be distributed as an additional principal payment,
sequentially, to the Class A-1, A-2, A-3 and A-4
Noteholders until the Outstanding Principal Amount of each
such class has been reduced to zero
OVERCOLLATERALIZATION
FLOOR: The "Overcollateralization Floor" for each Payment Date
means (a) 2.5% of the Discounted Present Value of the
Leases as of the Cut-Off Date, plus (b) the Cumulative Loss
Amount with respect to that Payment Date, minus (c) the
amount on deposit in the Reserve Account after giving
effect to withdrawals to be made on account of that Payment
Date.
CUMULATIVE LOSS
AMOUNT: The "Cumulative Loss Amount" with respect to each Payment
Date is an amount equal to the excess, if any, of (a) the
total of (i) the Outstanding Principal Amount of the Notes
as of the immediately preceding Payment Date after giving
effect to all principal payments made on that day, plus
(ii) the Overcollateralization Balance as of the
immediately preceding Payment Date, minus (iii) the lesser
of (A) the Discounted Present Value of the Performing
Leases as of the Determination Date relating to the
immediately preceding Payment Date minus the Discounted
Present Value of the Performing Leases as of the related
Determination Date and (B) Available Funds remaining after
the payment of the Policy premium, amounts owing the
Servicer and in respect of interest on the Notes on that
Payment Date, over (b) the Discounted Present Value of the
Performing Leases as of the related Determination Date.
INTEREST ON THE
CLASS A-1 NOTES: The Class A-1 Notes will accrue interest at a fixed rate
per annum, calculated on an actual/360-day basis. The Class
A-1 Monthly Interest, with respect to each Payment Date,
will accrue from and including the prior Payment Date to
but excluding such Payment Date, and with respect to the
initial Payment Date, will accrue from and including the
Closing Date to but excluding such Payment Date.
INTEREST ON THE CLASS A-2
CLASS A-3, AND
CLASS A-4 NOTES: The Class A-2, Class A-3, and Class A-4 Notes will accrue
interest at a fixed rate per annum, calculated on a twelve
month year of thirty days in each month, except for the
first Payment Date, for which interest will accrue from the
Closing Date to but excluding such Payment Date.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
3
<PAGE>
PREPAYMENT SENSITIVITIES*
To Maturity (WAL/Principal Window)
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------
Class 0% CPR** 7% CPR 10% CPR 12% CPR
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------
Class A-1 Notes 0.44 yrs. / 1-11 mos. 0.39 yrs. / 1-10 mos. 0.37 yrs. / 1-10 mos. 0.35 yrs. / 1-9 mos.
- ------------------------------------------------------------------------------------------------------------------------------
Class A-2 Notes 1.08 yrs. / 11-15 mos. 0.95 yrs. / 10-13 mos. 0.90 yrs. / 10-12 mos. 0.88 yrs. / 9-12 mos.
- ------------------------------------------------------------------------------------------------------------------------------
Class A-3 Notes 2.00 yrs. / 15-36 mos. 1.83 yrs. / 13-34 mos. 1.76 yrs. / 12-33 mos. 1.72 yrs. / 12-33 mos.
- ------------------------------------------------------------------------------------------------------------------------------
Class A-4 Notes 3.50 yrs. / 36-50 mos. 3.35 yrs. / 34-49 mos. 3.28 yrs. / 33-48 mos. 3.23 yrs. / 33-48 mos.
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
To 10% Call (WAL/Principal Window)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Class 0% CPR 7% CPR 10% CPR 12% CPR
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
Class A-1 Notes 0.44 yrs. / 1-11 mos. 0.39 yrs. / 1-10 mos. 0.37 yrs. / 1-10 mos. 0.35 yrs. / 1-9 mos.
- ------------------------------------------------------------------------------------------------------------------------------
Class A-2 Notes 1.08 yrs. / 11-15 mos. 0.95 yrs. / 10-13 mos. 0.90 yrs. / 10-12 mos. 0.88 yrs. / 9-12 mos.
- ------------------------------------------------------------------------------------------------------------------------------
Class A-3 Notes 2.00 yrs. / 15-36 mos. 1.83 yrs. / 13-34 mos. 1.76 yrs. / 12-33 mos. 1.72 yrs. / 12-33 mos.
- ------------------------------------------------------------------------------------------------------------------------------
Class A-4 Notes 3.14 yrs. / 36-38 mos. 2.97 yrs. / 34-36 mos. 2.89 yrs. / 33-35 mos. 2.88 yrs. / 33-35 mos.
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Prepayment sensitivities derived using the Modeling Assumptions.
** Pricing Speed is 0% CPR.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
4
<PAGE>
PRICE YIELD TABLE*
-----------------
<TABLE>
<CAPTION>
Class A-1
CPR
-----------------------------------------------------------
<S> <C> <C> <C> <C>
0.00% 7.00% 10.00% 12.00%
------------------------------------------------------------
PRICE Yield Yield Yield Yield
% % % %
99.73480 5.623 5.704 5.742 5.768
99.75040 5.587 5.664 5.700 5.724
99.76600 5.552 5.624 5.657 5.680
99.78160 5.516 5.584 5.615 5.636
99.79720 5.481 5.543 5.572 5.592
99.81280 5.446 5.503 5.530 5.548
99.82840 5.410 5.463 5.488 5.504
99.84400 5.375 5.423 5.445 5.460
99.85960 5.339 5.383 5.403 5.416
99.87520 5.304 5.342 5.360 5.372
99.89080 5.269 5.302 5.318 5.328
99.90640 5.233 5.262 5.275 5.284
99.92200 5.198 5.222 5.233 5.241
99.93760 5.163 5.182 5.191 5.197
99.95320 5.127 5.142 5.148 5.153
99.96880 5.092 5.102 5.106 5.109
99.98440 5.057 5.061 5.064 5.065
100.00000 5.021 5.021 5.021 5.021
100.01560 4.986 4.981 4.979 4.978
100.03120 4.951 4.941 4.937 4.934
100.04680 4.915 4.901 4.894 4.890
100.06240 4.880 4.861 4.852 4.846
100.07800 4.845 4.821 4.810 4.802
100.09360 4.810 4.781 4.768 4.759
100.10920 4.774 4.741 4.725 4.715
100.12480 4.739 4.701 4.683 4.671
100.14040 4.704 4.661 4.641 4.628
100.15600 4.669 4.621 4.599 4.584
100.17160 4.634 4.581 4.557 4.540
100.18720 4.598 4.541 4.514 4.497
100.20280 4.563 4.501 4.472 4.453
100.21840 4.528 4.461 4.430 4.409
100.23400 4.493 4.421 4.388 4.366
100.24960 4.458 4.381 4.346 4.322
100.26520 4.422 4.341 4.304 4.278
- ------------------------------------------------------------------------------------
WAL (yrs.): 0.44 0.39 0.37 0.35
Mod. Dur. (yrs.)
at 100.00000: 0.43 0.38 0.36 0.35
- ------------------------------------------------------------------------------------
</TABLE>
* Price Yield Table derived using the Modeling Assumptions.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
5
<PAGE>
PRICE YIELD TABLE*
-----------------
<TABLE>
<CAPTION>
Class A-2
CPR
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
0.00% 7.00% 10.00% 12.00%
-------------------------------------------------------------------
PRICE CBE Yield CBE Yield CBE Yield CBE Yield
% % % %
99.73480 5.670 5.703 5.718 5.728
99.75040 5.654 5.686 5.700 5.709
99.76600 5.639 5.668 5.682 5.691
99.78160 5.624 5.651 5.664 5.672
99.79720 5.608 5.634 5.646 5.653
99.81280 5.593 5.617 5.628 5.634
99.82840 5.578 5.599 5.610 5.616
99.84400 5.563 5.582 5.591 5.597
99.85960 5.547 5.565 5.573 5.578
99.87520 5.532 5.548 5.555 5.560
99.89080 5.517 5.531 5.537 5.541
99.90640 5.502 5.513 5.519 5.522
99.92200 5.486 5.496 5.501 5.503
99.93760 5.471 5.479 5.483 5.485
99.95320 5.456 5.462 5.464 5.466
99.96880 5.441 5.445 5.446 5.447
99.98440 5.425 5.427 5.428 5.429
99.99756 5.413 5.413 5.413 5.413
100.01560 5.395 5.393 5.392 5.391
100.03120 5.380 5.376 5.374 5.373
100.04680 5.364 5.359 5.356 5.354
100.06240 5.349 5.341 5.338 5.336
100.07800 5.334 5.324 5.320 5.317
100.09360 5.319 5.307 5.302 5.298
100.10920 5.304 5.290 5.284 5.280
100.12480 5.288 5.273 5.265 5.261
100.14040 5.273 5.256 5.247 5.242
100.15600 5.258 5.238 5.229 5.224
100.17160 5.243 5.221 5.211 5.205
100.18720 5.228 5.204 5.193 5.187
100.20280 5.212 5.187 5.175 5.168
100.21840 5.197 5.170 5.157 5.149
100.23400 5.182 5.153 5.139 5.131
100.24960 5.167 5.136 5.121 5.112
100.26520 5.152 5.119 5.103 5.094
----------------------------------------------------------------------------------
WAL (yrs.): 1.08 0.95 0.90 0.88
Mod. Dur. (yrs.)
at 99.99756: 1.02 0.91 0.86 0.84
- -----------------------------------------------------------------------------------
</TABLE>
* Price Yield Table derived using the Modeling Assumptions.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
6
<PAGE>
PRICE YIELD TABLE*
-----------------
<TABLE>
<CAPTION>
Class A-3
CPR
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
0.00% 7.00% 10.00% 12.00%
-------------------------------------------------------------------
PRICE CBE Yield CBE Yield CBE Yield CBE Yield
% % % %
99.71918 5.983 5.996 6.003 6.007
99.73478 5.975 5.987 5.993 5.997
99.75038 5.966 5.978 5.983 5.987
99.76598 5.957 5.969 5.974 5.977
99.78158 5.949 5.959 5.964 5.967
99.79718 5.940 5.950 5.954 5.958
99.81278 5.932 5.941 5.945 5.948
99.82838 5.923 5.931 5.935 5.938
99.84398 5.915 5.922 5.926 5.928
99.85958 5.906 5.913 5.916 5.918
99.87518 5.898 5.904 5.906 5.908
99.89078 5.889 5.894 5.897 5.899
99.90638 5.881 5.885 5.887 5.889
99.92198 5.872 5.876 5.878 5.879
99.93758 5.864 5.867 5.868 5.869
99.95318 5.855 5.857 5.858 5.859
99.96878 5.847 5.848 5.849 5.849
99.98652 5.837 5.838 5.838 5.838
99.99998 5.830 5.830 5.830 5.830
100.01558 5.821 5.820 5.820 5.820
100.03118 5.813 5.811 5.811 5.810
100.04678 5.804 5.802 5.801 5.800
100.06238 5.796 5.793 5.791 5.790
100.07798 5.787 5.783 5.782 5.781
100.09358 5.779 5.774 5.772 5.771
100.10918 5.770 5.765 5.763 5.761
100.12478 5.762 5.756 5.753 5.751
100.14038 5.753 5.747 5.744 5.741
100.15598 5.745 5.737 5.734 5.732
100.17158 5.736 5.728 5.724 5.722
100.18718 5.728 5.719 5.715 5.712
100.20278 5.719 5.710 5.705 5.702
100.21838 5.711 5.700 5.696 5.692
100.23398 5.702 5.691 5.686 5.683
100.24958 5.694 5.682 5.677 5.673
----------------------------------------------------------------------------------
WAL (yrs.): 2.00 1.83 1.76 1.72
Mod. Dur. (yrs.)
at 99.98652: 1.83 1.69 1.63 1.59
- -----------------------------------------------------------------------------------
</TABLE>
* Price Yield Table derived using the Modeling Assumptions.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
7
<PAGE>
PRICE YIELD TABLE*
-----------------
<TABLE>
<CAPTION>
Class A-4
-------------------------------------------------------------------
CPR
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
0.00% 7.00% 10.00% 12.00%
-------------------------------------------------------------------
PRICE CBE Yield CBE Yield CBE Yield CBE Yield
% % % %
99.73480 6.203 6.207 6.208 6.210
99.75040 6.198 6.201 6.203 6.204
99.76600 6.193 6.196 6.198 6.199
99.78160 6.188 6.191 6.192 6.193
99.79720 6.183 6.185 6.187 6.188
99.81280 6.178 6.180 6.181 6.182
99.82840 6.173 6.175 6.176 6.177
99.84400 6.167 6.170 6.171 6.171
99.85960 6.162 6.164 6.165 6.166
99.87520 6.157 6.159 6.160 6.160
99.89080 6.152 6.154 6.154 6.155
99.90640 6.147 6.148 6.149 6.149
99.92200 6.142 6.143 6.144 6.144
99.93760 6.137 6.138 6.138 6.138
99.95320 6.132 6.132 6.133 6.133
99.96880 6.127 6.127 6.127 6.128
99.98440 6.122 6.122 6.122 6.122
99.99869 6.117 6.117 6.117 6.117
100.01560 6.111 6.111 6.111 6.111
100.03120 6.106 6.106 6.106 6.106
100.04680 6.101 6.101 6.100 6.100
100.06240 6.096 6.095 6.095 6.095
100.07800 6.091 6.090 6.090 6.089
100.09360 6.086 6.085 6.084 6.084
100.10920 6.081 6.080 6.079 6.078
100.12480 6.076 6.074 6.073 6.073
100.14040 6.071 6.069 6.068 6.067
100.15600 6.066 6.064 6.063 6.062
100.17160 6.061 6.058 6.057 6.056
100.18720 6.056 6.053 6.052 6.051
100.20280 6.051 6.048 6.047 6.046
100.21840 6.045 6.043 6.041 6.040
100.23400 6.040 6.037 6.036 6.035
100.24960 6.035 6.032 6.030 6.029
100.26520 6.030 6.027 6.025 6.024
- ------------------------------------------------------------------------------------
WAL (yrs.): 3.50 3.35 3.28 3.23
Mod. Dur. (yrs.)
at 99.99869: 3.07 2.95 2.89 2.85
- --------------------------------------------------------------------------------
</TABLE>
* Price Yield Table derived using the Modeling Assumptions.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
8
<PAGE>
CHARACTERISTICS OF THE LEASES
-----------------------------
The following tables summarize certain information with respect to the Leases
and the Lessees as of the opening of business on April 1, 1999 (the "Cut-Off
Date"). The Issuer is not aware of any trends or changes relating to the data
in the following tables that would be expected to impact the future performance
of the pool of leases. As used in such tables, the "Statistical Discounted
Present Value of the Leases" means an amount equal to the future remaining
scheduled Lease Payments from the Leases as of the Cut-Off Date, discounted at a
rate equal to 7.00%. The aggregate Statistical Discounted Present Value of the
Leases as of the Cut-Off Date is $836,231,906.15. Also, figures may not sum to
the stated totals due to rounding.
Summary of the Leases
Aggregate Initial Statistical Discounted Present Value: $836,231,906.15
Number of Leases: 71,768
Average Statistical Discounted Present Value: $ 11,651.88
Approximate Number of Lessees: 45,569
Weighted Average Original Term: 53.01 months
Weighted Average Seasoning: 16.10 months
Weighted Average Remaining Term: 36.91 months
Top Equipment Types:
--------------------
%*
------
Analog Copier 61.31%
Digital/Multi-purpose Copier 17.38%
Color Copier 15.03%
Other 6.28%
------
100.00%
State concentrations over 5% of the pool:
-----------------------------------------
%*
------
California 17.08%
Georgia 11.33%
Massachusetts 9.46%
Connecticut 5.77%
Other 56.36%
------
100.00%
------------------------------------
* Percentages above are based on the Statistical Discounted Present Value of
the Leases as of the Cut-Off Date.
Distribution of Leases by State
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
9
<PAGE>
<TABLE>
<CAPTION>
Percentage of Percentage of
Statistical Statistical Aggregate Aggregate
Percentage of Discounted Discounted Original Original
Number Number Present Value Present Value Equipment Equipment
State of Leases of Leases of Leases of Leases Cost Cost
--------- ------------- -------------- --------------- -------------- --------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Alabama 454 0.63% $ 6,494,016.60 0.78% $ 4,603,175.63 0.68%
Alaska 112 0.16 1,249,515.81 0.15 898,997.62 0.13
Arizona 90 0.13 644,736.19 0.08 673,628.84 0.10
Arkansas 512 0.71 6,214,849.42 0.74 3,589,766.44 0.53
California 10,371 14.45 142,794,627.25 17.08 111,385,049.93 16.49
Colorado 78 0.11 546,006.42 0.07 590,268.70 0.09
Connecticut 4,674 6.51 48,284,415.89 5.77 49,052,528.53 7.26
Delaware 39 0.05 191,255.65 0.02 188,801.76 0.03
District of Columbia 533 0.74 6,908,788.06 0.83 6,134,738.14 0.91
Florida 3,781 5.27 35,052,738.35 4.19 28,301,796.84 4.19
Georgia 7,015 9.77 94,728,174.03 11.33 67,535,069.25 10.00
Hawaii 184 0.26 2,963,725.26 0.35 2,052,649.96 0.30
Idaho 573 0.80 4,096,625.22 0.49 4,124,660.86 0.61
Illinois 2,647 3.69 33,267,558.55 3.98 23,945,919.82 3.54
Indiana 2,221 3.09 32,252,905.84 3.86 25,311,991.15 3.75
Iowa 97 0.14 1,210,347.57 0.14 778,375.79 0.12
Kansas 1,749 2.44 12,595,462.51 1.51 9,920,235.26 1.47
Kentucky 249 0.35 2,122,022.08 0.25 1,946,452.99 0.29
Louisiana 42 0.06 375,359.37 0.04 347,465.54 0.05
Maine 410 0.57 6,834,612.14 0.82 4,063,079.14 0.60
Maryland 1,276 1.78 11,973,461.76 1.43 11,388,119.25 1.69
Massachusetts 5,772 8.04 79,144,924.72 9.46 69,114,280.19 10.23
Michigan 96 0.13 1,028,564.96 0.12 925,795.71 0.14
Minnesota 35 0.05 293,454.20 0.04 311,857.60 0.05
Mississippi 36 0.05 289,535.49 0.03 227,812.07 0.03
Missouri 1,845 2.57 15,527,861.80 1.86 12,490,443.62 1.85
Montana 123 0.17 870,464.91 0.10 623,671.92 0.09
Nebraska 850 1.18 7,145,231.68 0.85 5,135,731.08 0.76
Nevada 941 1.31 6,971,761.04 0.83 6,197,563.84 0.92
New Hampshire 16 0.02 122,921.62 0.01 109,760.89 0.02
New Jersey 1,301 1.81 20,177,297.68 2.41 15,530,352.94 2.30
New Mexico 9 0.01 150,402.89 0.02 117,823.22 0.02
New York 3,817 5.32 40,666,234.87 4.86 37,107,719.63 5.49
North Carolina 3,501 4.88 32,182,104.89 3.85 27,044,586.63 4.00
North Dakota 7 0.01 31,610.34 0.00 24,266.04 0.00
Ohio 2,718 3.79 30,640,082.81 3.66 25,304,315.41 3.75
Oklahoma 1,079 1.50 12,067,098.79 1.44 9,387,617.95 1.39
Oregon 1,731 2.41 14,232,346.58 1.70 11,385,785.74 1.69
Pennsylvania 115 0.16 1,251,257.09 0.15 1,258,780.41 0.19
Rhode Island 1,218 1.70 16,202,265.82 1.94 10,855,941.04 1.61
South Carolina 3,032 4.22 38,006,588.87 4.54 27,770,425.27 4.11
South Dakota 142 0.20 866,252.22 0.10 827,099.09 0.12
Tennessee 730 1.02 9,458,594.61 1.13 6,142,185.77 0.91
Texas 510 0.71 4,311,594.07 0.52 3,742,009.45 0.55
Utah 1,028 1.43 9,025,524.94 1.08 8,649,153.68 1.28
Vermont 490 0.68 4,024,989.64 0.48 2,748,914.83 0.41
Virginia 2,337 3.26 25,698,000.35 3.07 20,577,776.20 3.05
Washington 654 0.91 9,794,280.05 1.17 10,945,460.56 1.62
West Virginia 211 0.29 2,345,682.39 0.28 2,038,045.77 0.30
Wisconsin 63 0.09 859,912.83 0.10 731,094.29 0.11
Wyoming 254 0.35 2,043,860.06 0.24 1,507,845.23 0.22
===================================================================================================================================
Total: 71,768 100.00% $836,231,906.15 100.00% $675,666,887.51 100.00%
===================================================================================================================================
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
10
<PAGE>
Distribution of Leases by Lease Balance
<TABLE>
<CAPTION>
Percentage of Percentage of
Statistical Statistical Aggregate Aggregate
Percentage of Discounted Discounted Original Original
Statistical Discounted Present Number Number Present Value Present Value Equipment Equipment
Value of the Leases of Leases of Leases of Leases of Leases Cost Cost
- ------------------------------------------ --------- -------------- --------------- -------------- --------------- -----------
<S> <C> <C> <C> <C> <C> <C>
$ 0.01 - 5,000.00 32,902 45.84% $ 78,482,945.13 9.39% $ 98,200,809.48 14.53%
5,000.01 - 10,000.00 16,902 23.55 121,668,027.35 14.55 119,773,390.17 17.73
10,000.01 - 15,000.00 8,231 11.47 100,328,536.13 12.00 87,959,980.45 13.02
15,000.01 - 20,000.00 4,172 5.81 71,738,612.99 8.58 58,139,758.59 8.60
20,000.01 - 25,000.00 2,388 3.33 53,206,727.74 6.36 42,750,760.19 6.33
25,000.01 - 30,000.00 1,588 2.21 43,421,263.41 5.19 33,053,713.92 4.89
30,000.01 - 40,000.00 1,908 2.66 65,677,330.32 7.85 48,885,171.61 7.24
40,000.01 - 50,000.00 1,062 1.48 47,341,496.54 5.66 33,710,368.70 4.99
50,000.01 - 60,000.00 648 0.90 35,356,945.24 4.23 23,061,240.55 3.41
60,000.01 - 70,000.00 419 0.58 27,089,192.93 3.24 18,791,271.25 2.78
70,000.01 - 80,000.00 351 0.49 26,340,594.22 3.15 16,854,404.16 2.49
80,000.01 - 90,000.00 224 0.31 19,130,558.87 2.29 12,701,397.42 1.88
90,000.01 - 100,000.00 183 0.25 17,359,047.57 2.08 10,640,263.87 1.57
100,000.01 - 150,000.00 492 0.69 59,096,392.76 7.07 34,473,038.73 5.10
150,000.01 - 200,000.00 171 0.24 29,199,821.92 3.49 16,474,806.49 2.44
200,000.01 - 300,000.00 74 0.10 17,593,584.03 2.10 7,973,683.58 1.18
300,000.01 - 400,000.00 30 0.04 10,232,350.03 1.22 5,648,400.94 0.84
400,000.01 - 500,000.00 9 0.01 3,954,285.93 0.47 2,565,875.09 0.38
500,000.01 - 600,000.00 4 0.01 2,141,198.58 0.26 698,195.66 0.10
600,000.01 - 700,000.00 6 0.01 3,773,695.11 0.45 1,673,499.49 0.25
700,000.01 - 800,000.00 4 0.01 3,099,299.34 0.37 1,636,857.17 0.24
====================================================================================================================================
Total: 71,768 100.00% $836,231,906.15 100.00% $675,666,887.51 100.00%
====================================================================================================================================
</TABLE>
Distribution of Leases by Remaining Term to Maturity
<TABLE>
<CAPTION>
Percentage of Percentage
Statistical Statistical Aggregate Aggregate
Percentage of Discounted Discounted Original Original
Number Number Present Value Present Value Equipment Equipment
Remaining Term (months) of Leases of Leases of Leases of Leases Cost Cost
- ------------------------------------------ --------- -------------- --------------- -------------- --------------- -----------
<S> <C> <C> <C> <C> <C> <C>
6 - 12 10,489 14.62% $ 30,563,995.80 3.65% $ 70,602,708.70 10.45
13 - 24 21,045 29.32 131,327,791.32 15.70 159,724,714.67 23.64
25 - 36 20,203 28.15 232,533,668.05 27.81 188,421,846.65 27.89
37 - 48 12,685 17.68 245,358,833.36 29.34 151,992,733.20 22.50
49 - 60 7,339 10.23 195,865,092.88 23.42 104,515,328.23 15.47
61 - 72 7 0.01 582,524.74 0.07 409,556.06 0.06
====================================================================================================================================
Total: 71,768 100.00% $836,231,906.15 100.00% $675,666,887.51 100.00%
====================================================================================================================================
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
11
<PAGE>
Distribution of Leases by Original Term to Maturity
<TABLE>
<CAPTION>
Percentage of Percentag of
Statistical Statistical Aggregate Aggregate
Percentage of Discounted Discounted Original Original
Number Number Present Value Present Value Equipment Equipment
Original Term (months) of Leases of Leases of Leases of Leases Cost Cost
------------------------ --------- ------------ ------------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
7 - 12 217 0.30% $ 528,964.15 0.06% $425,237.55 0.06%
13 - 18 84 0.12 314,123.14 0.04 346,171.10 0.05
19 - 24 2,328 3.24 8,586,691.36 1.03 12,662,451.93 1.87
25 - 30 287 0.40 1,728,792.24 0.21 1,475,346.33 0.22
31 - 36 3,212 32.34 141,328,417.39 16.90 149,815,811.19 2.17
37 - 42 4,272 5.95 34,499,429.53 4.13 31,953,188.00 4.73
43 - 48 1,755 16.38 114,137,565.53 13.65 98,353,563.75 4.56
49 - 54 782 1.09 8,719,322.14 1.04 8,059,089.17 1.19
55 - 60 7,862 38.82 506,100,484.06 60.52 354,170,572.40 2.42
61 - 66 852 1.19 14,488,801.28 1.73 14,595,616.42 2.16
67 - 72 93 0.13 4,886,120.84 0.58 3,401,998.37 0.50
73 - 78 12 0.02 721,603.54 0.09 241,151.41 0.04
79 - 84 4 0.01 112,039.61 0.01 74,005.16 0.01
85 - 90 3 0.00 55,575.63 0.01 57,484.74 0.01
91 - 96 3 0.00 20,943.31 0.00 30,312.76 0.00
97 - 102 1 0.00 1,486.63 0.00 718.14 0.00
103 - 108 1 0.00 1,545.78 0.00 4,169.09 0.00
===================================================================================================================================
Total: 71,768 100.00% $836,231,906.15 100.00% $675,666,887.51 100.00%
===================================================================================================================================
</TABLE>
Distribution of Leases by Purchase Option
<TABLE>
<CAPTION>
Percentage of Percentage of
Statistical Statistical Aggregate Aggregate
Percentage of Discounted Discounted Original Original
Number Number Present Value Present Value Equipment Equipment
Purchase Option of Leases of Leases of Leases of Leases Cost Cost
---------------- --------- -------------- --------------- -------------- --------------- --------------
<S> <C> <C> <C> <C> <C> <C>
Fair Market Value 67,407 93.92% $809,372,057.97 96.79% $649,127,164.37 96.07%
Nominal Buyout 4,361 6.08 26,859,848.19 3.21 26,539,723.14 3.93
===================================================================================================================================
Total: 71,768 100.00% $836,231,906.15 100.00% $675,666,887.51 100.00%
====================================================================================================================================
</TABLE>
Distribution of Leases by Delinquencies
<TABLE>
<CAPTION>
Percentage of Percentage
Statistical Statistical Aggregate Aggregate
Percentage of Discounted Discounted Original Original
Number Number Present Value Present Value Equipment Equipment
Days Delinquent of Leases of Leases of Leases of Leases Cost Cost
--------------- ---------- -------------- ------------- ------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
0 - 30 66,169 92.20% $760,760,920.33 90.97% $613,573,687.26 90.81%
31 - 60 5,599 7.80 75,470,985.82 9.03 62,093,200.25 9.19
====================================================================================================================================
Total: 71,768 100.00% $836,231,906.15 100.00% $675,666,887.51 100.00%
====================================================================================================================================
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
12
<PAGE>
Distribution of Leases by Equipment Type
<TABLE>
<CAPTION>
Percentage of Percentage of
Statistical Statistical Aggregate Aggregate
Percentage of Discounted Discounted Original Original
Number Number Present Value Present Value Equipment Equipment
Equipment Type of Leases of Leases of Leases of Leases Cost Cost
------------------ --------- -------------- --------------- -------------- --------------- -----------
<S> <C> <C> <C> <C> <C> <C>
Analog Copier 46,682 65.05% $512,659,862.82 61.31% $435,024,511.51 64.38%
Digital / Multi-purpose Copier 9,705 13.52 145,366,609.91 17.38 94,784,761.46 14.03
Color Copier 4,099 5.71 125,688,827.20 15.03 100,916,428.94 14.94
Fax Machine 9,393 13.09 27,610,247.72 3.30 22,956,015.14 3.40
Miscellaneous 1,484 2.07 14,929,635.47 1.79 15,055,449.10 2.23
Printer 405 0.56 9,976,723.03 1.19 6,929,721.36 1.03
====================================================================================================================================
Total: 71,768 100.00% $836,231,906.15 100.00% $675,666,887.51 100.00%
====================================================================================================================================
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
13
