<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) December 7, 1998
Prudential Securities Secured Financing Corporation
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
<S> <C> <C>
Delaware 333-61939 13-3526694
---------------------------------------------- ------------------------ ------------------
(State or Other Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer
Identification No.)
One New York Plaza
New York, New York 10292
---------------------------------------- ------------------
(Address of Principal Executive Offices) (Zip Code)
</TABLE>
Registrant's telephone number, including area code (212) 778-1000
---------------
No Change
- --------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
- --------------------------------------------------------------------------------
<PAGE>
Item 5. Other Events
In connection with the offering of ABFS Mortgage Loan Trust
1998-4, Mortgage Backed Notes, Series 1998-4 described in a Prospectus
Supplement dated December 4, 1998, 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).
2
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the registrant has duly caused this Report to
be signed on its behalf by the undersigned thereunto duly authorized.
PRUDENTIAL SECURITIES SECURED FINANCING
CORPORATION
-----------------------------------------
as Depositor and on behalf of ABFS
Mortgage Loan Trust 1998-4
Registrant
By: /s/ Evan Mitnick
--------------------------
Name: Evan Mitnick
Title: Vice President
Dated: December 7, 1998
<PAGE>
EXHIBIT INDEX
-------------
Exhibit No. Description
- ----------- -----------
99.1 Related Computational Materials (as defined
in Item 5 above).
<PAGE>
EXHIBIT 99.1
------------
PRELIMINARY
BACKGROUND INFORMATION
American Business Financial Services
ABFS Mortgage Loan Trust 1998-4
APPROXIMATE CLASS SIZES
- --------------------------------------------------------------------------------
FIXED RATE NOTES
*********Fixed Rate Collateral (Pool A)*********
[$64,350,000] Class A-1 FIXED RATE NOTES
- --------------------------------------------------------------------------------
FLOATING RATE NOTES
*********Fixed Rate Collateral (Pool B)*********
[$14,850,000] Class A-2 FLOATING RATE NOTES
The information provided herein is provided solely by Prudential Securities
Incorporated ("PSI") as underwriter for the ABFS Mortgage Loan Trust 1998-4
transaction, and not by, or as agent for, American Business Financial Services,
Inc. ("ABFS" or the "Company") or any of its affiliates. The analysis in this
report is accurate to the best of PSI's knowledge and is based on information
provided by the Company. PSI makes no representations as to the accuracy of such
information provided to it by the Company. All assumptions and information in
this report reflect PSI's judgment as of this date and are subject to change.
All analyses are based on certain assumptions noted herein and different
assumptions could yield substantially different results. You are cautioned that
there is no universally accepted method for analyzing financial instruments. You
should review the assumptions; there may be differences between these
assumptions and your actual business practices. Further, PSI does not guarantee
any results and there is no guarantee as to the liquidity of the instruments
involved in this analysis. The decision to adopt any strategy remains your
responsibility. PSI (or any of its affiliates) or its officers, directors,
analysts or employees may have positions in securities, commodities or
derivative instruments thereon referred to herein, and may, as principal or
agent, buy or sell such securities, commodities or derivative instruments. In
addition, PSI may make a market in the securities referred to herein. Neither
the information nor the assumptions reflected herein shall be construed to be,
or constitute, an offer to sell or buy or a solicitation of an offer to sell or
buy any securities, commodities or derivative instruments mentioned herein. No
sale of any securities, commodities or derivative instruments should be
consumated without the purchaser first having received a prospectus and, if
required, prospectus supplement. The Certficates are offered by PSI when, as and
if issued, subject to delivery by the Depositor and acceptance by PSI, to prior
sale and to withdrawal, cancellation or modification of the offer without
notice. Finally, PSI has not addressed the legal, accounting and tax
implications of the analysis with respect to you, and PSI strongly urges you to
seek advice from your counsel, accountant and tax advisor.
<PAGE>
American Business Financial Services - ABFS Mortgage Loan Trust 1998-4
PRICING INFORMATION
(FIXED RATE NOTES)
--------------------------------------
Class: A-1*
Approximate
Face Amount: [64,350,000]
Coupon: [6.505]
Price: [100-00]
Yield: [6.431]
Spread: [240]
Exp Avg Life
to Maturity: [3.4]yrs
Exp Avg Life
to Call: [3.2]yrs
Exp 1st
Prin Pmt: [12/28/1998]
Exp Mat
to call: [11/25/06]
Exp Mat:
to Mat [01/25/16]
Stated Mat: [01/25/30]
Exp Rating
(S&P/Moody's): AAA/Aaa
Pricing Spd: 25% HEP
Pricing Date: [10/16/98]
Investor
Settle Date: [12/7/98]
Cut-off Date
(Close of Business): 10/31/98
Pmt Delay: 24 days
Dated Date: 11/1/98
Int Pmt: 30/360
Pmt Terms: Monthly
1st Int.
Pmt Date: 12/28/98
Collateral
Type: Fixed Rate ("Pool A")
SMMEA
Eligibility: non-SMMEA
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL
TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE
SUCH A DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES
INCORPORATED FINANCIAL ADVISOR IMMEDIATELY.
<PAGE>
American Business Financial Services - ABFS Mortgage Loan Trust 1998-4
*Class A-1 Coupon
Step-up: Class A-1 is priced to call. If the Servicer does not
exercise the Cleanup Call, the Coupon on Class A-1 will
increase 50 basis points.
Cashflow Priority: 1) Repayment of unreimbursed Servicer advances;
2) Servicing fee;
3) Trustee fee;
4) Surety fee;
5) Repayment of unreimbursed Surety payments;
6) Accrued monthly interest for Fixed Rate Noteholders;
7) Monthly principal to the Fixed Rate Noteholders (as
described below);
8) Excess cashflow to build over-collateralization
("O/C"); and
9) Any remaining excess cashflow to the holders of the
Trust Certificates.
Class A-1 Note
Principal Paydown: All principal collected from Pool A is paid to the
Class A-1 Noteholders.
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL
TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE
SUCH A DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES
INCORPORATED FINANCIAL ADVISOR IMMEDIATELY.
<PAGE>
American Business Financial Services - ABFS Mortgage Loan Trust 1998-4
PRICING INFORMATION
(FLOATING RATE NOTES)
--------------------------------------
Class: A-2**
Approximate
Face Amount: [14,850,000]
Coupon: [TBD]
Price: [100-00]
Yield: [TBD]
Spread: [TBD]
Exp Avg Life
to Maturity: [3.453]yrs
Exp Avg Life
to Call: [3.172]yrs
Exp 1st
Prin Pmt: [12/28/1998]
Exp Mat
to call: [9/25/06]
Exp Mat: [10/25/15]
Stated Mat: [1/25/30]
Exp Rating
(S&P/Moody's): AAA/Aaa
Pricing Spd: 25% HEP
Pricing Date: [TBD]
Investor
Settle Date: [12/7/98]
Cut-off Date
(Close of Business): 10/31/98
Pmt Delay: 0 days
Dated Date: [12/7/98]
Int Pmt: actual/360
Pmt Terms: Monthly
1st Int.
Pmt Date: 12/28/98
Collateral
Type: Fixed Rate ("Pool B")
SMMEA
Eligibility: non-SMMEA
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL
TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE
SUCH A DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES
INCORPORATED FINANCIAL ADVISOR IMMEDIATELY.
<PAGE>
American Business Financial Services - ABFS Mortgage Loan Trust 1998-4
**Class A-2 Coupon: The lesser of:
1) One Month LIBOR + [TBD]bps
2) Available Funds Cap
**Class A-2 Coupon Step-up: Class A-2 is priced to the call. If the Servicer
does not exercise the Cleanup Call, the Class
A-2 Coupon will equal the lesser of:
1) One Month LIBOR + (2 x [TBD]bps)
2) Available Funds Cap
Available Funds Cap: A rate equal to the weighted average gross
coupon rate on the Pool B Mortgage Loans for
such Distribution Date less the Expense Fee
Rate and the Credit Spread Rate.
Expense Fee Rate = 0.725% for servicing fee,
trustee fee and surety fee.
Credit Spread Rate = [0.75%] to provide excess
spread for building overcollateralization and
for covering any losses which may occur.
LIBOR Interest Carryover: If, on any Disbribution Date, the Class A-2
Coupon is based upon the Available Funds Cap,
the excess of (i) the amount of interest Class
A-2 would otherwise be entitled to receive on
such Disbribution Date at the then-applicable
LIBOR Rate in the absence of the Available Funds
Cap, over (ii) the amount of accrued interest
for such Distribution Date at the Available
Funds Cap, together with the unpaid portion of
any such excess from prior Disbribution Dates
(and interest accrued thereon at the
then-applicable LIBOR Rate) is referred to as
the LIBOR Interest Carryover. Any LIBOR Interest
Carryover will be carried forward to the next
Distribution Date until paid from sources of
funds and in the priority set forth in the
Indenture. The LIBOR Interest Carryover will not
be insured by the FSA guarantee.
Cashflow Priority: 1) Repayment of unreimbursed Servicer advances;
2) Servicing fee;
3) Trustee fee;
4) Surety fee;
5) Repayment of unreimbursed Surety payments;
6) Accrued monthly interest and LIBOR Interest
Carryover for Class A-2 Noteholders;
7) Monthly principal to the Class A-2
Noteholders (as described below);
8) Excess cashflow to build over-
collateralization ("O/C"); and
9) Any remaining excess cashflow to the holders
of the Trust Certificates.
Class A-2 Note
Principal Paydown: All principal collected from Pool B is paid to
the Class A-2 Noteholders.
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL
TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE
SUCH A DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES
INCORPORATED FINANCIAL ADVISOR IMMEDIATELY.
<PAGE>
American Business Financial Services - ABFS Mortgage Loan Trust 1998-4
SUMMARY OF TERMS
--------------------------
Title of Securities: ABFS Mortgage Loan Trust 1998-4, Series 1998-4 Class A-1
(the "Fixed Rate Notes") and Class A-2 (the "Floating
Rate Notes", together with the Fixed Rate Notes, the
"Class A Notes").
Depositor: Prudential Securities Secured Financing Corporation
Servicer: American Business Credit, Inc.
Upland Mortgage and New Jersey Mortgage Investment Corp.
will act as subservicers.
Originators: American Business Credit, Inc., Home American Credit,
Inc., d/b/a Upland Mortgage and New Jersey Mortgage
Investment Corp. originated or purchased the Mortgage
Loans.
Trustee: The Bank of New York, a New York banking corporation.
Aggregate
Note Balance: [$79,200,000]
Securities Offered: 100% FSA-guaranteed notes.
Offering: Public shelf offering -- a prospectus and prospectus
supplement will be distributed after pricing.
Pricing Date: 10/16/98 (Fixed Rate Notes)
[TBD] (Floating Rate Notes)
Investor
Settlement Date: [12/7/98]
Form of Notes: Book-Entry form, same-day funds through DTC, Euroclear
and CEDEL
Coupon: [6.505]% on Class A-1 Notes
[1ML + TBD]% on Class A-2 Notes*
*Subject to the Available Funds Cap
Prepayment
Assumption: 25% HEP (2.5% CPR in month 1 with monthly incremental
increases of 2.5% CPR until the speed reaches 25% CPR in
month 10 based on loan seasoning). This means that
seasoned loans will start further up on the prepayment
curve.
Payment Date: The 25th day of each month (or, if any such date
is not a business day, the first business day
thereafter) commencing in December 1998. The payment
delay will be 24 days for the Fixed Rate Notes and zero
days for the Floating Rate Notes.
Interest Accrual
Period: With respect to any Distribution Date, interest on the
Fixed Rate Notes will accrue during the prior calendar
month and will be calculated based on a 360-day year
consisting of twelve 30-day months.
With respect to any Distribution Date, interest on the
Floating Rate Notes will accrue during the period from
the Distribution Date in the immediately preceding month
(or, in the case of the first Distribution Date, from
the Closing Date) to the day immediately preceding the
related Distribution Date. Interest on the Floating Rate
Notes will be calculated on the basis of a 360-day year
for the actual number of days elapsed in each Accrual
Period.
Optional
Cleanup Call: The Servicer may call the Class A Notes on any
Remittance Date when the then-outstanding collateral
balance (Pool A & Pool B) is less than or equal to 10%
of the original collateral balance (Pool A & Pool B).
The Servicer may also call the Class A-2 Notes
separately on any Remittance Date when the
then-outstanding Class A-2 Notes principal balance is
less than or equal to 10% of the original Class A-2 note
principal balance.
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL
TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE
SUCH A DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES
INCORPORATED FINANCIAL ADVISOR IMMEDIATELY.
<PAGE>
American Business Financial Services - ABFS Mortgage Loan Trust 1998-4
Fixed Rate Notes
Credit Enhancement: 1) 100% wrap from FSA.
2) Overcollateralization.
3) Excess monthly cashflow from Pool A and Pool B (once
O/C requirements of the Floating Rate Notes are
satisfied).
Floating Rate Notes
Credit Enhancement: 1) 100% wrap from FSA.
2) Overcollateralization.
3) Excess monthly cashflow from Pool B and Pool A (once
O/C requirements of the Fixed Rate Notes are
satisfied).
Note Insurer: Financial Security Assurance Inc. ("FSA").
FSA's claims-paying ability is rated "AAA" by Standard &
Poor's and "Aaa" by Moody's Investors Service.
Note Insurance Policy: The Note Insurance Policy will provide 100% coverage of
timely interest and ultimate principal payments due on
the Class A Notes.
Overcollateralization
and Reserve Account: The credit enhancement provisions of the Trust are
intended to provide for the limited acceleration of the
Class A Notes relative to the amortization of the
related collateral (i.e., Pool A for the Fixed Rate
Notes and Pool B for the Floating Rate Notes), generally
in the early months of the transaction. Accelerated
amortization is achieved by applying certain excess
interest collected on the related collateral to the
payment of principal on the related group of Notes,
resulting in the build up of overcollateralization
("O/C"). By paying down the principal balance of the
related group of Notes faster than the principal
amortization of the related collateral pool, an
overcollateralization amount equal to the excess of the
aggregate principal balance of the related collateral
pool over the principal balance of the related group of
Notes is created. On the first payment date, 0% of the
excess cashflow available from each pool will be
directed to build O/C; after the first payment date, 80%
of the excess cashflow available from the related
collateral will be directed to build O/C until the pool
initially reaches its required O/C target. After each
pool initially reaches its required O/C target, the
acceleration feature will cease, unless it is once again
necessary to maintain its required O/C level. If the
required O/C level is not reached or maintained, 100% of
the excess cashflow will be applied to build O/C, as
necessary, to reach or maintain the required O/C level.
If either Pool's O/C target is reached before the
other's, 80% of the excess cashflow from the "satisfied"
Pool will be directed to a reserve account to the extent
of any deficiency in the O/C requirement for the
"unsatisfied" Pool. After initially reaching their O/C
target, if either Pool's O/C target is maintained and
the other Pool becomes deficient in its O/C requirement,
100% of the excess cashflow from the "satisfied" Pool
will be directed to a reserve account to the extent of
any deficiency in the O/C requirement for the
"unsatisfied" Pool. If the sum of the O/C level of the
"unsatisfied" Pool and the amount on deposit in the
Reserve Account exceeds the O/C target, such excess will
be distributed to the Trust Certificateholder. Funds on
deposit in the Reserve Account will be used to pay
shortfalls of current interest or credit losses on
either Class of Notes, but only to the extent the O/C
level on such Class has been reduced to 0%.
Overcollateralization
Levels for Pool A &
Pool B (Approx.): Initial O/C based on original collateral balance: [1.0%]
O/C Target based on original collateral balance: [5.0%]
These O/C percentages are subject to step-downs
beginning in month [30] if certain tests are met.
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL
TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE
SUCH A DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES
INCORPORATED FINANCIAL ADVISOR IMMEDIATELY.
<PAGE>
American Business Financial Services - ABFS Mortgage Loan Trust 1998-4
Pool A
Pre-funding Account: On the Settlement Date, an aggregate cash amount (the
"Pool A Pre-funded Amount"), which will equal
approximately [$20,000,000] will be deposited in the
Pool A Pre- funding Account. During the period ("the
Funding Period") from the Settlement Date until the
earlier of: (i) the date on which the amount in the Pool
A Pre-funding Account is less than $100,000, (ii) the
date on which any Servicer default occurs, or (iii) [30]
days from the Settlement Date, the Pool A Pre-funding
Amount will remain in the Pool A Pre-funding Account.
The Pool A Pre-funding Account will be reduced during
the Funding Period by amounts used to purchase
subsequent mortgages in accordance with the Indenture.
Any Pool A Pre-funded Amount remaining at the end of the
Funding Period (net of reinvestment income payable to
the Trust Certificateholders) will be distributed to the
Fixed Rate Noteholders on the January 25, 1999
Distribution Date as a partial prepayment of principal
on such group of Notes.
Pool B
Pre-funding Account: There will not be any Pre-funding Account for Pool B.
Pool B will be entirely funded with collateral on the
Settlement Date.
Servicing Fee: 50 basis points per annum.
ERISA Considerations: The Fixed Rate Notes will not be ERISA eligible during
the Funding Period. However, the Fixed Rate Notes may be
ERISA eligible after the Funding Period.
The Floating Rate Notes may be ERISA eligible.
Investors should consult with their counsel with respect
to the consequences under ERISA and the Internal Revenue
Code of a Plan's acquisition and ownership of such
Notes.
Taxation: Fixed Rate Notes: Debt for tax. The Fixed Rate Notes
will be issued by an Owner Trust. Floating Rate Notes:
Sale for tax. The Floating Rate Notes will be issued by
an Owner Trust which will make a REMIC election with
respect to Pool B.
Legal Investment: None of the Class A Notes will be SMMEA-eligible.
Note Ratings: S&P: "AAA" for all Class A Notes.
Moody's: "Aaa" for all Class A Notes.
Prospectus: The Notes are being offered pursuant to a Prospectus
which includes a Prospectus Supplement (together, the
"Prospectus"). Complete information with respect to the
Notes and the Collateral is contained in the Prospectus.
The foregoing is qualified in its entirety by the
information appearing in the Prospectus. To the extent
that the foregoing is inconsistent with the Prospectus,
the Prospectus shall govern in all respects. Sales of
the Notes may not be consumated unless the purchaser has
received the Prospectus.
Further Information: Trading: Greg Richter or Rob Karr at (212) 778-2741,
Banking: Evan Mitnick (212) 778-7469, Shelby Carvalho
at (212) 778-4127 or Katya Sverdlov
at (212) 778-8038.
FSG: Januar Laude at (212) 778-7176 or YQ Zhang
at (212) 778-1196.
COPIES OF PROSPECTUS: PLEASE SEND AN E-MAIL WITH CLIENT'S NAME ADDRESS AND
PHONE NUMBER TO KATYA SVERDLOV AT:
IMPACT ID: SVERDLOV
CCMAIL: [email protected]
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL
TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE
SUCH A DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES
INCORPORATED FINANCIAL ADVISOR IMMEDIATELY.
<PAGE>
American Business Financial Services - ABFS Mortgage Loan Trust 1998-4
Expected Collateral Composition*
--------------------------------
<TABLE>
<CAPTION>
Pool A Pool B
---------------------------------- ---------------------------------------
Expected Expected
Average Min. Avg. Max. Avg. Average Min. Avg. Max. Avg.
--------------------------------- ---------------------------------------
<S> <C> <C> <C> <C> <C> <C>
WAC (net) 10.55% 10.28% 11.25% 10.60% 10.33% 11.50%
WAM 271.94 265.14 290.00 274.27 267.41 290.00
LTV 78.30% N/A 82.00% 80.80% N/A 82.00%
Avg. Loan Size 74,398.39 72,538.43 76,258.35 221,604.66 216,064.54 227,144.78
Second Liens 9.13% N/A 15.00% 18.86% N/A 27.84%
Balloons 32.00% N/A 32% 40.49% N/A 42%
</TABLE>
* The parameters above are not based on an actual pool but are based on the
expectations and recent collateral origination experience of the originators.
The Min. Avg. and Max Avg. parameters above illustrate the potential
deviations from the expected averages presented above.
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL
TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE
SUCH A DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES
INCORPORATED FINANCIAL ADVISOR IMMEDIATELY.
<PAGE>
Available Fund Cap for A-2
Available Fund Cap = Net Coupon - On-going Fee - Credit Spread Rate
Assume 30/360 Day Count for bond interest calculation
DATE COUPON DATE COUPON
- -------------------------------------
12/98 9.6202 01/03 9.6245
01/99 9.6203 02/03 9.6246
02/99 9.6204 03/03 9.6248
03/99 9.6204 04/03 9.6249
04/99 9.6205 05/03 9.6250
05/99 9.6206 06/03 9.6251
06/99 9.6206 07/03 9.6252
07/99 9.6207 08/03 9.6253
08/99 9.6208 09/03 9.6255
09/99 9.6209 10/03 9.6256
10/99 9.6209 11/03 9.6257
11/99 9.6210 12/03 9.6258
12/99 9.6211 01/04 9.6259
01/00 9.6212 02/04 9.6261
02/00 9.6213 03/04 9.6262
03/00 9.6213 04/04 9.6263
04/00 9.6214 05/04 9.6264
05/00 9.6215 06/04 9.6266
06/00 9.6216 07/04 9.6267
07/00 9.6217 08/04 9.6268
08/00 9.6217 09/04 9.6270
09/00 9.6218 10/04 9.6271
10/00 9.6219 11/04 9.6272
11/00 9.6220 12/04 9.6274
12/00 9.6221 01/05 9.6275
01/01 9.6222 02/05 9.6276
02/01 9.6223 03/05 9.6278
03/01 9.6224 04/05 9.6279
04/01 9.6224 05/05 9.6281
05/01 9.6225 06/05 9.6282
06/01 9.6226 07/05 9.6284
07/01 9.6227 08/05 9.6285
08/01 9.6228 09/05 9.6287
09/01 9.6229 10/05 9.6288
10/01 9.6230 11/05 9.6290
11/01 9.6231 12/05 9.6291
12/01 9.6232 01/06 9.6293
01/02 9.6233 02/06 9.6294
02/02 9.6234 03/06 9.6296
03/02 9.6235 04/06 9.6298
04/02 9.6236 05/06 9.6299
05/02 9.6237 06/06 9.6301
06/02 9.6238 07/06 9.6303
07/02 9.6239 08/06 9.6304
08/02 9.6240 09/06 9.6306
09/02 9.6241
10/02 9.6242
11/02 9.6243
12/02 9.6244
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL
TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE
SUCH A DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES
INCORPORATED FINANCIAL ADVISOR IMMEDIATELY.
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CURRENT BALANCE: $14,850,000.00 DATED DATE: 12/07/98
CURRENT COUPON: [TBD] abfs984 FIRST PAYMENT: 12/25/98
FACTOR: 1.0000000000 TOTAL CLASSES: 4
ORIGINAL BALANCE: $14,850,000.00 BOND A-2 DISCOUNT MARGIN ACT/360 TABLE YIELD TABLE DATE: 12/07/98
ASSUMED CONSTANT LIBOR-1M 5.2270
(Run to Call)
PRICING SPEED
25.0% 15.00% 20.00% 25.00% 30.00% 35.00%
PRICE HEP HEP HEP HEP HEP HEP
99-24 68.973 66.076 67.514 68.973 70.476 71.998
99-24+ 68.411 65.695 67.043 68.411 69.820 71.246
99-25 67.849 65.315 66.573 67.849 69.164 70.495
99-25+ 67.287 64.934 66.102 67.287 68.508 69.745
99-26 66.726 64.554 65.632 66.726 67.853 68.994
99-26+ 66.165 64.174 65.162 66.165 67.197 68.243
99-27 65.604 63.794 64.692 65.604 66.542 67.493
99-27+ 65.043 63.414 64.222 65.043 65.887 66.743
99-28 64.482 63.035 63.753 64.482 65.233 65.993
99-28+ 63.921 62.655 63.283 63.921 64.578 65.243
99-29 63.360 62.275 62.814 63.360 63.923 64.494
99-29+ 62.800 61.896 62.345 62.800 63.269 63.744
99-30 62.240 61.516 61.875 62.240 62.615 62.995
99-30+ 61.680 61.137 61.406 61.680 61.961 62.246
99-31 61.120 60.758 60.937 61.120 61.307 61.497
99-31+ 60.560 60.379 60.469 60.560 60.653 60.748
100-00 60.000 60.000 60.000 60.000 60.000 60.000
100-00+ 59.440 59.621 59.531 59.440 59.347 59.252
100-01 58.881 59.242 59.063 58.881 58.694 58.504
100-01+ 58.322 58.864 58.595 58.322 58.041 57.756
100-02 57.763 58.485 58.127 57.763 57.388 57.008
100-02+ 57.204 58.107 57.659 57.204 56.735 56.260
100-03 56.645 57.728 57.191 56.645 56.083 55.513
100-03+ 56.086 57.350 56.723 56.086 55.430 54.766
100-04 55.528 56.972 56.255 55.528 54.778 54.019
100-04+ 54.969 56.594 55.788 54.969 54.126 53.272
100-05 54.411 56.216 55.320 54.411 53.474 52.526
100-05+ 53.853 55.838 54.853 53.853 52.823 51.779
100-06 53.295 55.461 54.386 53.295 52.171 51.033
100-06+ 52.737 55.083 53.919 52.737 51.520 50.287
100-07 52.179 54.705 53.452 52.179 50.869 49.541
100-07+ 51.622 54.328 52.985 51.622 50.218 48.795
First Payment 0.050 0.050 0.050 0.050 0.050 0.050
Average Life 3.172 5.099 3.918 3.172 2.652 2.275
Last Payment 7.800 12.717 9.717 7.800 6.383 5.383
Mod.Dur. @ 100-00 2.686 3.967 3.208 2.686 2.301 2.009
Accrued Interest 0.000 0.000 0.000 0.000 0.000 0.000
</TABLE>
THIS COLLATERAL TERMSHEET SUPERSEDES ANY PREVIOUS COLLATERAL
TERMSHEETS, AND WILL BE SUPERSEDED BY THE COLLATERAL INFORMATION IN THE
PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE
SUCH A DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES
INCORPORATED FINANCIAL ADVISOR IMMEDIATELY.
