Pricing Supplement No. 124 Dated February 7, 1996, to
Prospectus Dated November 9, 1994 as Supplemented by Prospectus
Supplement Dated March 22, 1995
ASSOCIATES CORPORATION OF NORTH AMERICA MEDIUM TERM SENIOR NOTES,
SERIES H
$12,100,000 principal amount of the Series H Notes,
bearing interest at 5.32% per annum and maturing
on February 12, 1999, are being sold by the Company to
Morgan Stanley & Co. Incorporated
at a price of 99.977% of their principal amount.
Such Notes may be offered to the public at varying prices
depending upon market conditions at the time of resale,
as determined by Morgan Stanley & Co. Incorporated.
The Notes to which this Pricing Supplement relates will be
Fixed Rate Notes and will be initially issued as
Book Entry Notes for settlement on February 12, 1996.
Prior to this Pricing Supplement, $1,011,695,000 aggregate principal
amount of the Series H Notes offered pursuant to the Prospectus
Supplement dated March 22, 1995 to the Prospectus dated
November 9, 1994 has been sold at the interest rates then in effect.
On November 16, 1995 the Company reduced the amount of the aggregate principal
amount of the Series H Notes available for sale under the Prospectus and the
Prospectus Supplement referred to above by $100,000,000 from $1,500,000,000 to
$1,400,000,000.
Recent Financial Information
The following summary of certain consolidated financial information of the
Company has been derived principally from information and financial statements
contained in the Company's Annual Report on Form 10-K for the year ended
December 31, 1994 and its Quarterly Report on Form 10-Q for the
nine months ended September 30, 1995 (in millions):
<TABLE>
<CAPTION>
Year Ended or Nine Months Ended
at December 31 or at September 30
1994 1994 1995
(Unaudited)
<S> <C> <C> <C>
Revenue $ 4,387.9 $ 3,176.6 $ 3,973.3
Earnings Before Provision for
Income Taxes $ 972.6 $ 712.7 $ 833.2
Net Earnings $ 603.5 $ 444.3 $ 526.9
Finance Receivables (net of
unearned finance income and
allowance for losses) $30,043.3 $28,743.9 $34,004.8
Stockholders' Equity $ 3,786.1 $ 3,703.0 $ 4,334.3
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Recent Developments
On January 31, 1996, the Company announced its results for the year ended
December 31, 1995. Such results, compared to the results of operations for
the prior fiscal year, were as follows: Revenue - $5.4 billion (1995), $4.4
billion (1994); Earnings before Provision for Income Taxes - $1.1 billion
(1995), $972.6 million (1994); and Net Earnings - $708.1 million (1995),
$603.5 million (1994).
On October 12, 1995, Ford Motor Company ("Ford"), the ultimate parent of the
Company, announced that it is reviewing its own possible strategic actions,
which could include a partial sale of the Company's immediate parent
corporation, Associates First Capital Corporation. Ford has stated that
whether any transaction would occur, and the possible timing of any such
transaction, have not been determined.
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