<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) October 1, 1999
IKON Receivables, LLC
_____________________________________________________
(Exact name of registrant as specified in its charter)
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 31208
Macon, Georgia ----------
(Address of Principal
Executive Offices) (Zip Code)
- -------------------------------------------------------------------------------
(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 1999-2, described in a Preliminary Prospectus Supplement dated as of
September 24, 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/ Thomas Sheehan
-----------------------
Name: Thomas Sheehan
Title: Treasurer
Dated: September 30, 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 September 27, 1999
IKON Receivables, LLC
Lease-Backed Notes, 1999-2
IOS Capital, Inc.
[LOGO]
An IKON office Solutions Company
$707,750,000 (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.
2
<PAGE>
TERM SHEET DATED September 27, 1999
IKON Receivables, LLC
Lease-Backed Notes, 1999-2
IOS Capital, Inc.
$707,750,000 (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., Deutsche Banc Alex. Brown 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 $238,133,000 A-1+ / P-1 0.44 yrs. / 0.44 yrs. 1-10 / 1-10. Aug 2000 / Oct 2000 Yes
(2)
- ---------------------------------------------------------------------------------------------------------------------------
Class A-2 $ 51,715,000 AAA / AAA 1.02 yrs. / 1.02 yrs. 11-13 / 11-13 Nov 2000 / May 2001 Yes
- ---------------------------------------------------------------------------------------------------------------------------
Class A-3a $ ________(3) AAA / AAA 2.10 yrs. / 2.10 yrs. 13-40 / 13-40 Feb 2003 / Aug 2003 Yes
- ---------------------------------------------------------------------------------------------------------------------------
Class A-3b $ ________(3) AAA / AAA 2.10 yrs. / 2.10 yrs. 13-40 / 13-40 Feb 2003 / Aug 2003 Yes
- ---------------------------------------------------------------------------------------------------------------------------
Class A-4 $ 73,004,000 AAA / AAA 3.80 yrs. / 3.44 yrs. 40-52 / 40-41 Feb 2004 / Nov 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.
(3) The actual principal amounts of these classes will be determined on the
issuance date; however the balance of the Class A-3a Notes together with
the A-3b Notes is approximately $344,898,000.
The information set forth herein is based upon the timely receipt of scheduled
Lease Payments, assumes the Closing Date is October 7, 1999, the first Payment
Date is November 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 $238,133,000, $51,715,000, $344,898,000 and
$73,004,000, respectively, the "Statistical Class Percentage" for the Class A
Notes is equal to 85.65654%, the Asset Pool consists of a single Lease with an
aggregate discounted present value of $786,388,442.59 on which interest is
accrued at a discount rate equal to 7.842%, 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 September 1, 1999.
STATED MATURITY
DATE: Class A-1: Payment Date occurring in October 2000.
Class A-2: Payment Date occurring in May 2001.
Class A-3a: Payment Date occurring in August 2003.
Class A-3b: Payment Date occurring in August 2003.
Class A-4: Payment Date occurring in November 2005.
EXP. PRICING: Week of September 27, 1999.
EXP. SETTLEMENT: Week October 4, 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 November 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 and the issuer will not be treated as
an association (or a publicly traded partnership) taxable as
a corporation.
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 September 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 $780,819,921.79 using the Statistical
Discount Rate of 8.00% 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) amounts due to Swap Counterparty pursuant to
the Swap Agreement, (iii) Servicing Fee, (iv) unreimbursed
Servicer Advances, (v) Class A interest, (vi) reimbursements
to the Insurer, (vii) the Class A Principal Payment to (1)
the Class A-1 Noteholders only, until the Outstanding
Principal Amount on the Class A-1 Notes is reduced to zero,
then (2) to the Class A-2 Noteholders only, until the
Outstanding Principal Amount on the Class A-2 Notes is
reduced to zero, then (3) to the Class A-3a
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>
Noteholders and the Class A-3b Noteholders only,
their respective pro rata shares, until the
Outstanding Principal Amount on the Class A-3a
Notes and Class A-3b Notes is reduced to zero, and
finally (4) to the Class A-4 Noteholders, until
the Outstanding Principal Amount on the Class A-4
Notes is reduced to zero, (viii) Additional
Principal, if any, (ix) Reserve Account, if
necessary, and (x) excess to the Issuer.
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, to (1) the Class A-1
Noteholders only, until the Outstanding Principal
Amount on the Class A-1 Notes is reduced to zero,
then (2) to the Class A-2 Noteholders only, until
the Outstanding Principal Amount on the Class A-2
Notes is reduced to zero, then (3) to the Class
A-3a Noteholders and the Class A-3b Noteholders
only, their respective pro rata shares, until the
Outstanding Principal Amount on the Class A-3a
Notes and Class A-3b Notes is reduced to zero, and
finally (4) to the Class A-4 Noteholders, until
the Outstanding Principal Amount on the Class A-4
Notes is 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 & A-3b NOTES: Class A-1 will bear interest at a fixed rate while
Class A-3b will be variable rate. Interest on the
Class A-1 and A-3b will be calculated on the basis
of a year of 360 days and the actual number of
days in the interest accrual period. The Class A-1
and Class A-3b 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-3a, AND
CLASS A-4 NOTES: The Class A-2, Class A-3a, 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>
LEGAL MATTERS: Certain legal matters relating to the Notes will
be passed upon for the Issuer by Don H. Liu, Esq.,
General Counsel of the Originator and IKON Office
Solutions, the parent company of the Originator,
and for the Underwriters by Dewey Ballantine LLP,
New York, New York.
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>
PREPAYMENT SENSITIVITIES*
<TABLE>
<CAPTION>
To Maturity (WAL/Principal Window)
- ----------------------------------------------------------------------------------------------------------------
Class 0% CPR** 7% CPR 10% CPR 12% CPR
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class A-1 Notes 0.44 yrs. / 1-10 mos. 0.39 yrs. / 1-9 mos. 0.36 yrs. / 1-9 mos. 0.35 yrs. / 1-8 mos.
- ----------------------------------------------------------------------------------------------------------------
Class A-2 Notes 1.02 yrs. / 11-13 0.89 yrs. / 9-12 mos. 0.84 yrs. / 9-11 mos. 0.81 yrs. / 8-11 mos.
mos.
- ----------------------------------------------------------------------------------------------------------------
Class A-3a Notes 2.10 yrs. / 13-40 1.92 yrs. / 12-38 1.84 yrs. / 11-37 mos. 1.79 yrs. / 11-36
mos. mos. mos.
- ----------------------------------------------------------------------------------------------------------------
Class A-3b Notes 2.10 yrs. / 13-40 1.92 yrs. / 12-38 1.84 yrs. / 11-37 mos. 1.79 yrs. / 11-36
mos. mos. mos.
- ----------------------------------------------------------------------------------------------------------------
Class A-4 Notes 3.80 yrs. / 40-52 3.64 yrs. / 38-51 3.56 yrs. / 37-50 mos. 3.51 yrs. / 36-50
mos. mos. mos.
- ----------------------------------------------------------------------------------------------------------------
To 10% Call (WAL/Principal Window)
- ----------------------------------------------------------------------------------------------------------------
Class 0% CPR 7% CPR 10% CPR 12% CPR
- ----------------------------------------------------------------------------------------------------------------
Class A-1 Notes 0.44 yrs. / 1-10 mos. 0.39 yrs. / 1-9 mos. 0.36 yrs. / 1-9 mos. 0.35 yrs. / 1-8 mos.
- ----------------------------------------------------------------------------------------------------------------
Class A-2 Notes 1.02 yrs. / 11-13 0.89 yrs. / 9-12 mos. 0.84 yrs. / 9-11 mos. 0.81 yrs. / 8-11 mos.
mos.
- ----------------------------------------------------------------------------------------------------------------
Class A-3a Notes 2.10 yrs. / 13-40 1.92 yrs. / 12-38 1.84 yrs. / 11-37 1.79 yrs. / 11-36 mos.
mos. mos. mos.
- ----------------------------------------------------------------------------------------------------------------
Class A-3b Notes 2.10 yrs. / 13-40 1.92 yrs. / 12-38 1.84 yrs. / 11-37 1.79 yrs. / 11-36 mos.
mos. mos. mos.
- ----------------------------------------------------------------------------------------------------------------
Class A-4 Notes 3.44 yrs. / 40-41 3.27 yrs. / 38-39 3.18 yrs. / 37-38 3.10 yrs. / 36-37 mos.
mos. mos. 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.
5
<PAGE>
PRICE YIELD TABLE*
-----------------
Class A-1
----------------------------------------------------
CPR
----------------------------------------------------
0.00% 7.00% 10.00% 12.00%
----------------------------------------------------
PRICE Yield Yield Yield Yield
% % % %
97.8750% 11.047 11.738 12.056 12.257
98.0000% 10.753 11.402 11.702 11.891
98.1250% 10.460 11.068 11.348 11.525
98.2500% 10.167 10.734 10.996 11.161
98.3750% 9.875 10.401 10.644 10.797
98.5000% 9.583 10.069 10.292 10.433
98.6250% 9.292 9.737 9.941 10.071
98.7500% 9.002 9.405 9.591 9.709
98.8750% 8.712 9.075 9.242 9.348
99.0000% 8.423 8.745 8.893 8.987
99.1250% 8.134 8.416 8.545 8.627
99.2500% 7.846 8.087 8.198 8.268
99.3750% 7.558 7.759 7.852 7.910
99.5000% 7.271 7.432 7.506 7.552
99.6250% 6.985 7.105 7.160 7.195
99.7500% 6.699 6.779 6.816 6.839
99.8750% 6.414 6.453 6.472 6.483
100.0000% 6.129 6.129 6.128 6.128
100.1250% 5.844 5.804 5.786 5.774
100.2500% 5.561 5.481 5.444 5.421
100.3750% 5.277 5.158 5.103 5.068
100.5000% 4.995 4.835 4.762 4.716
100.6250% 4.712 4.514 4.422 4.364
100.7500% 4.431 4.192 4.083 4.013
100.8750% 4.150 3.872 3.744 3.663
101.0000% 3.869 3.552 3.406 3.313
101.1250% 3.589 3.233 3.068 2.965
101.2500% 3.310 2.914 2.732 2.616
101.3750% 3.031 2.596 2.395 2.269
101.5000% 2.752 2.278 2.060 1.922
101.6250% 2.474 1.961 1.725 1.576
101.7500% 2.197 1.645 1.391 1.230
101.8750% 1.920 1.329 1.057 0.885
102.0000% 1.643 1.014 0.724 0.541
102.1250% 1.367 0.700 0.392 0.198
- ------------------------------------------------------------------------
WAL (yrs.): 0.44 0.39 0.36 0.35
Mod. Dur. (yrs.)
at 100.00000: 0.43 0.38 0.36 0.34
- ------------------------------------------------------------------------
* 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*
------------------
Class A-2
---------------------------------------------------
CPR
---------------------------------------------------
0.00% 7.00% 10.00% 12.00%
---------------------------------------------------
PRICE CBE Yield CBE Yield CBE Yield CBE Yield
% % % %
97.8750% 8.696 9.018 9.152 9.261
98.0000% 8.562 8.864 8.990 9.093
98.1250% 8.427 8.710 8.828 8.925
98.2500% 8.293 8.557 8.667 8.757
98.3750% 8.160 8.404 8.506 8.590
98.5000% 8.026 8.252 8.346 8.422
98.6250% 7.893 8.099 8.185 8.256
98.7500% 7.760 7.947 8.026 8.089
98.8750% 7.627 7.796 7.866 7.923
99.0000% 7.495 7.644 7.707 7.758
99.1250% 7.363 7.493 7.548 7.592
99.2500% 7.231 7.342 7.389 7.427
99.3750% 7.099 7.192 7.231 7.263
99.5000% 6.968 7.042 7.073 7.098
99.6250% 6.836 6.892 6.915 6.934
99.7500% 6.705 6.742 6.758 6.771
99.8750% 6.575 6.593 6.601 6.607
99.9946% 6.450 6.451 6.451 6.451
100.1250% 6.314 6.296 6.288 6.282
100.2500% 6.184 6.147 6.132 6.119
100.3750% 6.055 5.999 5.976 5.957
100.5000% 5.925 5.852 5.821 5.796
100.6250% 5.796 5.704 5.666 5.634
100.7500% 5.667 5.557 5.511 5.473
100.8750% 5.538 5.410 5.356 5.313
101.0000% 5.410 5.263 5.202 5.152
101.1250% 5.282 5.117 5.048 4.992
101.2500% 5.154 4.971 4.895 4.833
101.3750% 5.026 4.825 4.742 4.673
101.5000% 4.899 4.680 4.589 4.514
101.6250% 4.771 4.535 4.436 4.356
101.7500% 4.644 4.390 4.284 4.197
101.8750% 4.517 4.245 4.132 4.039
102.0000% 4.391 4.101 3.980 3.882
102.1250% 4.265 3.957 3.829 3.724
- -----------------------------------------------------------------------
WAL (yrs.): 1.02 0.89 0.84 0.81
Mod. Dur. (yrs.)
at 99.99756: 0.96 0.84 0.80 0.77
- -----------------------------------------------------------------------
* 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*
------------------
Class A-3
---------------------------------------------------
CPR
---------------------------------------------------
0.00% 7.00% 10.00% 12.00%
---------------------------------------------------
PRICE CBE Yield CBE Yield CBE Yield CBE Yield
% % % %
97.8594% 7.860 7.964 8.013 8.047
97.9844% 7.792 7.890 7.936 7.968
98.1094% 7.724 7.816 7.859 7.889
98.2344% 7.656 7.742 7.782 7.810
98.3594% 7.589 7.668 7.705 7.731
98.4844% 7.521 7.595 7.629 7.653
98.6094% 7.454 7.521 7.552 7.574
98.7344% 7.387 7.448 7.476 7.496
98.8594% 7.319 7.374 7.400 7.418
98.9844% 7.252 7.301 7.324 7.340
99.1094% 7.185 7.228 7.248 7.262
99.2344% 7.119 7.155 7.172 7.184
99.3594% 7.052 7.083 7.097 7.107
99.4844% 6.985 7.010 7.021 7.029
99.6094% 6.919 6.937 6.946 6.952
99.7344% 6.852 6.865 6.871 6.875
99.8594% 6.786 6.793 6.796 6.798
99.9873% 6.718 6.719 6.719 6.719
100.1094% 6.654 6.649 6.646 6.645
100.2344% 6.588 6.577 6.572 6.568
100.3594% 6.522 6.505 6.497 6.492
100.4844% 6.457 6.434 6.423 6.415
100.6094% 6.391 6.362 6.348 6.339
100.7344% 6.326 6.291 6.274 6.263
100.8594% 6.260 6.219 6.200 6.187
100.9844% 6.195 6.148 6.127 6.111
101.1094% 6.130 6.077 6.053 6.036
101.2344% 6.065 6.007 5.979 5.960
101.3594% 6.000 5.936 5.906 5.885
101.4844% 5.935 5.865 5.832 5.810
101.6094% 5.870 5.795 5.759 5.735
101.7344% 5.806 5.724 5.686 5.660
101.8594% 5.741 5.654 5.613 5.585
101.9844% 5.677 5.584 5.540 5.510
102.1094% 5.613 5.514 5.468 5.436
- ------------------------------------------------------------------------
WAL (yrs.): 2.10 1.92 1.84 1.79
Mod. Dur. (yrs.)
at 99.98652: 1.89 1.74 1.67 1.63
- ------------------------------------------------------------------------
* 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>
PRICE YIELD TABLE*
------------------
Class A-4
---------------------------------------------------
CPR
---------------------------------------------------
0.00% 7.00% 10.00% 12.00%
---------------------------------------------------
PRICE CBE Yield CBE Yield CBE Yield CBE Yield
% % % %
97.8594% 7.702 7.728 7.740 7.749
97.9844% 7.662 7.686 7.698 7.707
98.1094% 7.622 7.645 7.656 7.664
98.2344% 7.583 7.604 7.615 7.622
98.3594% 7.543 7.563 7.573 7.580
98.4844% 7.504 7.522 7.531 7.538
98.6094% 7.464 7.481 7.489 7.495
98.7344% 7.425 7.440 7.448 7.453
98.8594% 7.386 7.400 7.406 7.411
98.9844% 7.347 7.359 7.365 7.369
99.1094% 7.308 7.318 7.324 7.327
99.2344% 7.269 7.278 7.282 7.285
99.3594% 7.230 7.237 7.241 7.244
99.4844% 7.191 7.197 7.200 7.202
99.6094% 7.152 7.156 7.159 7.160
99.7344% 7.113 7.116 7.118 7.119
99.8594% 7.074 7.076 7.077 7.077
99.9840% 7.036 7.036 7.036 7.036
100.1094% 6.997 6.996 6.995 6.994
100.2344% 6.958 6.955 6.954 6.953
100.3594% 6.920 6.915 6.913 6.912
100.4844% 6.881 6.876 6.873 6.871
100.6094% 6.843 6.836 6.832 6.830
100.7344% 6.805 6.796 6.792 6.788
100.8594% 6.766 6.756 6.751 6.747
100.9844% 6.728 6.716 6.711 6.707
101.1094% 6.690 6.677 6.670 6.666
101.2344% 6.652 6.637 6.630 6.625
101.3594% 6.614 6.598 6.590 6.584
101.4844% 6.576 6.558 6.550 6.543
101.6094% 6.538 6.519 6.509 6.503
101.7344% 6.500 6.479 6.469 6.462
101.8594% 6.462 6.440 6.429 6.422
101.9844% 6.424 6.401 6.389 6.381
102.1094% 6.387 6.362 6.350 6.341
- -----------------------------------------------------------------------
WAL (yrs.): 3.80 3.64 3.56 3.51
Mod. Dur. (yrs.)
at 99.99869: 3.23 3.11 3.06 3.02
- -----------------------------------------------------------------------
* 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.
9
<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 September 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 8.00%. The aggregate Statistical Discounted Present Value of the Leases
as of the Cut-Off Date is $780,819,921.79. Certain leases may be removed from
the Asset Pool prior to the Issuance Date in an amount no more than 5% of the
Asset Pool. This removal would result in a decrease in the Initial Principal
Amount of the Notes issued on the Issuance Date. However, this removal would not
materially affect the distribution of the Leases detailed below. Also, figures
may not sum to the stated totals due to rounding.
Summary of the Leases
Aggregate Initial Statistical Discounted Present Value: $780,819,921.79
Number of Leases: 61,556
Average Statistical Discounted Present Value: $12,684.71
Approximate Number of Lessees: 42,865
Weighted Average Original Term: 52.49 months
Weighted Average Seasoning: 12.95 months
Weighted Average Remaining Term: 39.54 months
Top Equipment Types:
--------------------
%*
----------
Analog Copier 51.45%
Digital/Multi-purpose Copier 23.79%
Color Copier 14.51%
Other 10.25%
----------
100.00%
State concentrations over 5% of the pool:
-----------------------------------------
%*
----------
California 7.03%
Minnesota 6.78%
Missouri 6.63%
Florida 6.63%
Michigan 5.83%
Other 67.10%
----------
100.00%
- -------------------------------------------------
* Percentages above are based on the Statistical Discounted Present Value
of the Leases as of the Cut-Off 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.
10
<PAGE>
Distribution of Leases by State
<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 1,486 2.41% $16,494,672.02 2.11% $12,662,157.11 2.16%
Alaska 109 0.18 1,678,898.35 0.22 1,085,274.67 0.18
Arizona 2,844 4.62 27,522,818.25 3.52 22,554,016.23 3.84
Arkansas 281 0.46 4,393,491.66 0.56 2,471,436.24 0.42
California 2,839 4.61 54,896,157.69 7.03 34,595,863.19 5.89
Colorado 1,921 3.12 28,412,968.31 3.64 21,362,009.17 3.64
Connecticut 974 1.58 12,769,644.91 1.64 11,359,119.35 1.94
Delaware 72 0.12 975,443.11 0.12 800,316.77 0.14
District of Columbia 190 0.31 4,092,232.91 0.52 2,937,818.86 0.50
Florida 5,198 8.44 51,801,071.81 6.63 38,300,565.79 6.53
Georgia 1,788 2.90 30,953,256.50 3.96 22,103,060.58 3.77
Hawaii 55 0.09 1,318,649.19 0.17 655,654.19 0.11
Idaho 143 0.23 1,523,590.71 0.20 1,109,483.44 0.19
Illinois 2,391 3.88 33,637,846.55 4.31 21,131,561.62 3.60
Indiana 1,212 1.97 19,110,063.08 2.45 12,178,701.49 2.08
Iowa 1,606 2.61 14,755,768.35 1.89 10,842,310.99 1.85
Kansas 379 0.62 4,202,896.16 0.54 2,930,350.17 0.50
Kentucky 1,370 2.23 14,558,550.32 1.86 11,656,979.26 1.99
Louisiana 21 0.03 63,632.69 0.01 95,156.88 0.02
Maine 188 0.31 2,791,796.61 0.36 1,971,021.70 0.34
Maryland 584 0.95 8,088,004.91 1.04 6,996,976.39 1.19
Massachusetts 1,354 2.20 25,633,327.56 3.28 20,360,732.83 3.47
Michigan 4,511 7.33 45,524,070.61 5.83 38,995,198.94 6.64
Minnesota 5,200 8.45 52,901,695.50 6.78 37,115,734.13 6.32
Mississippi 1,251 2.03 11,878,351.58 1.52 10,787,456.34 1.84
Missouri 4,023 6.54 51,761,826.28 6.63 33,783,427.99 5.76
Montana 57 0.09 800,382.39 0.10 510,606.04 0.09
Nebraska 230 0.37 2,613,263.19 0.33 1,603,541.57 0.27
Nevada 423 0.69 3,898,214.30 0.50 2,567,354.61 0.44
New Hampshire 559 0.91 8,746,021.13 1.12 7,080,939.66 1.21
New Jersey 754 1.22 13,852,738.94 1.77 9,751,244.64 1.66
New Mexico 832 1.35 12,748,845.31 1.63 13,607,494.79 2.32
New York 2,706 4.40 36,834,128.81 4.72 30,120,651.64 5.13
North Carolina 3,223 5.24 36,451,315.29 4.67 25,802,483.54 4.40
North Dakota 14 0.02 97,678.54 0.01 73,138.86 0.01
Ohio 2,290 3.72 33,749,010.83 4.32 26,925,283.57 4.59
Oklahoma 368 0.60 4,405,890.59 0.56 3,027,699.71 0.52
Oregon 699 1.14 8,694,215.70 1.11 4,804,463.70 0.82
Pennsylvania 214 0.35 2,718,306.88 0.35 2,215,538.32 0.38
Rhode Island 240 0.39 5,054,120.60 0.65 3,260,775.03 0.56
South Carolina 611 0.99 11,373,655.28 1.46 7,175,170.09 1.22
South Dakota 34 0.06 245,334.95 0.03 169,175.81 0.03
Tennessee 1,115 1.81 14,912,840.31 1.91 11,804,023.26 2.01
Texas 223 0.36 2,304,917.89 0.30 1,639,090.58 0.28
Utah 237 0.39 3,151,538.30 0.40 2,342,715.37 0.40
Vermont 181 0.29 2,496,375.51 0.32 1,873,867.42 0.32
Virginia 1,600 2.60 17,703,098.58 2.27 13,787,561.31 2.35
Washington 1,558 2.53 20,979,068.86 2.69 22,302,278.90 3.80
West Virginia 53 0.09 909,381.35 0.12 800,915.53 0.14
Wisconsin 1,253 2.04 13,114,105.64 1.68 12,176,637.47 2.07
Wyoming 92 0.15 1,224,747.03 0.16 630,121.92 0.11
=========================================================================================================================
Total: 61,556 100.00% $780,819,921.79 100.00% $586,895,157.66 100.00%
=========================================================================================================================
</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 Lease Balance
<TABLE>
<CAPTION>
Percentage
of Percentage
Statistical of
Statistical Discounted Aggregate
Number Percentage Discounted Present Aggregate Original
Statistical Discounted Present of of Number Present Value Value of Original Equipment
Value of the Leases Leases of Leases of Leases Leases Equipment Cost Cost
------------------------------------ ------ --------- -------------- ------- -------------- ---------
<S> <C> <C> <C> <C> <C> <C>
$ 0.01 - 5,000.00 25,060 40.71% $69,798,588.99 8.94% $79,288,774.90 13.51%
5,000.01 - 10,000.00 16,086 26.13 115,677,157.93 14.81 102,100,030.15 17.40
10,000.01 - 15,000.00 7,609 12.36 92,962,214.95 11.91 71,762,745.52 12.23
15,000.01 - 20,000.00 3,963 6.44 68,349,584.03 8.75 50,819,613.37 8.66
20,000.01 - 25,000.00 2,225 3.61 49,591,083.82 6.35 35,227,500.77 6.00
25,000.01 - 30,000.00 1,442 2.34 39,369,109.51 5.04 28,198,296.85 4.80
30,000.01 - 40,000.00 1,651 2.68 56,930,333.35 7.29 38,944,343.80 6.64
40,000.01 - 50,000.00 980 1.59 43,672,153.03 5.59 30,440,469.84 5.19
50,000.01 - 60,000.00 629 1.02 34,350,066.95 4.40 23,220,237.69 3.96
60,000.01 - 70,000.00 455 0.74 29,257,149.53 3.75 19,593,572.61 3.34
70,000.01 - 80,000.00 314 0.51 23,569,506.16 3.02 15,573,065.43 2.65
80,000.01 - 90,000.00 259 0.42 21,965,962.98 2.81 13,948,134.15 2.38
90,000.01 - 100,000.00 182 0.30 17,231,733.92 2.21 10,267,409.69 1.75
100,000.01 - 150,000.00 440 0.71 52,153,659.25 6.68 30,519,300.00 5.20
150,000.01 - 200,000.00 128 0.21 21,964,739.25 2.81 12,261,967.31 2.09
200,000.01 - 300,000.00 79 0.13 18,974,369.79 2.43 10,574,647.96 1.80
300,000.01 - 400,000.00 31 0.05 10,735,929.81 1.37 5,846,639.70 1.00
400,000.01 - 500,000.00 8 0.01 3,582,101.74 0.46 2,280,296.54 0.39
500,000.01 - 600,000.00 8 0.01 4,306,651.25 0.55 2,213,689.31 0.38
600,000.01 - 700,000.00 2 0.00 1,277,612.68 0.16 1,019,489.58 0.17
700,000.01 - 800,000.00 2 0.00 1,434,828.18 0.18 1,173,693.30 0.20
800,000.01 - 900,000.00 1 0.00 841,198.24 0.11 204,675.53 0.03
1,000,000.01 - 1,500,000.00 1 0.00 1,195,990.06 0.15 961,465.66 0.16
1,500,000.01 - 2,000,000.00 1 0.00 1,628,196.38 0.21 455,098.00 0.08
==================================== ========= ============= ================= ============= ================== ============
Total: 61,556 100.00% $780,819,921.79 100.00% $586,895,157.66 100.00%
==================================== ========= ============= ================= ============= ================== ============
</TABLE>
Distribution of Leases by Remaining Term to Maturity
<TABLE>
<CAPTION>
Percentage of Percentage of
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 5,344 8.68% $19,625,208.92 2.51% $43,327,237.85 7.38%
13 - 24 14,310 23.25 91,995,205.14 11.78 112,022,475.84 19.09
25 - 36 19,806 32.18 215,047,108.59 27.54 165,686,009.86 28.23
37 - 48 11,752 19.09 207,555,521.86 26.58 128,322,139.07 21.86
49 - 60 10,329 16.78 244,880,649.09 31.36 136,731,059.65 23.30
61 - 72 15 0.02 1,716,228.19 0.22 806,235.39 0.14
=============================================================================================================================
Total: 61,556 100.00% $780,819,921.79 100.00% $586,895,157.66 100.00%
=============================================================================================================================
</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 Original Term to Maturity
<TABLE>
<CAPTION>
Percentage of Percentage 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>
7 -12 310 0.50% $1,139,584.22 0.15% $825,597.63 0.14%
13 - 18 83 0.13 589,370.59 0.08 492,639.89 0.08
19 - 24 1,283 2.08 5,872,516.50 0.75 6,871,518.31 1.17
25 - 30 207 0.34 2,339,604.43 0.30 1,810,846.43 0.31
31 - 36 17,790 28.90 139,982,145.68 17.93 135,288,509.96 23.05
37 - 42 4,815 7.82 40,309,664.35 5.16 33,295,544.19 5.67
43 - 48 10,094 16.40 110,174,777.45 14.11 84,971,916.42 14.48
49 - 54 699 1.14 8,668,810.43 1.11 6,701,867.45 1.14
55 - 60 25,921 42.11 460,579,442.94 58.99 308,901,856.18 52.63
61 - 66 277 0.45 7,193,747.40 0.92 5,158,869.88 0.88
67 - 72 72 0.12 3,815,970.23 0.49 2,424,810.90 0.41
79 - 84 4 0.01 138,961.85 0.02 126,747.42 0.02
91 - 96 1 0.00 15,325.73 0.00 24,433.00 0.00
=============================================================================================================================
Total: 61,556 100.00% $780,819,921.79 100.00% $586,895,157.66 100.00%
=============================================================================================================================
</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 57,761 93.83% $753,987,483.16 96.56% $559,108,860.86 95.27%
Nominal Buyout 3,795 6.17 26,832,438.63 3.44 27,786,296.80 4.73
=============================================================================================================================
Total: 61,556 100.00% $780,819,921.79 100.00% $586,895,157.66 100.00%
=============================================================================================================================
</TABLE>
Distribution of Leases by Delinquencies
<TABLE>
<CAPTION>
Percentage of Percentage of
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 58,230 94.60% $726,626,007.04 93.06% $546,376,216.16 93.10%
31-60 3,326 5.40 54,193,914.75 6.94 40,518,941.50 6.90
=============================================================================================================================
Total: 61,556 100.00% $780,819,921.79 100.00% $586,895,157.66 100.00%
=============================================================================================================================
</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
<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 37,059 60.20% $401,749,694.23 51.45% $322,899,308.44 55.02%
Digital/Multi-purpose 12,951 21.04 185,735,256.41 23.79 122,155,491.49 20.81
Copier
Color Copier 3,605 5.86 113,276,633.73 14.51 87,611,011.44 14.93
Fax Machine 5,941 9.65 22,700,656.81 2.91 15,520,995.47 2.64
Miscellaneous 1,054 1.71 9,421,523.81 1.21 8,328,677.00 1.42
Printer 946 1.54 47,936,156.81 6.14 30,379,673.82 5.18
=============================================================================================================================
Total: 61,556 100.00% $780,819,921.79 100.00% $586,895,157.66 100.00%
=============================================================================================================================
</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.
14
