================================================================================
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) November 9, 1999
Prudential Securities Secured Financing Corporation
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware
- --------------------------------------------------------------------------------
(State or Other Jurisdiction of Incorporation)
333-52021 13-3526694
- ---------------------------------------- ------------------------------------
(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)
(212) 778-1000
- --------------------------------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
No Change
- --------------------------------------------------------------------------------
(Former Name or Former Address, if Changed Since Last Report)
================================================================================
<PAGE>
ITEM 5. OTHER EVENTS.
In connection with the offering of Flagship Auto Receivables Owner Trust
1999-2, Auto Receivables Backed Notes, Series 1999-2 described in a Prospectus
Supplement dated November 8, 1999, Mayer, Brown & Platt rendered an opinion
regarding certain tax matters. A copy of that opinion is filed as an exhibit to
this report and is incorporated herein by reference.
In connection with the offering of Flagship Auto Receivables Owner Trust
1999-2, Auto Receivables Backed Notes, Series 1999-2 described in a Prospectus
Supplement dated November 8, 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 AND EXHIBITS.
(c) Exhibits.
EXHIBIT
NO. DOCUMENT DESCRIPTION
--- --------------------
(a) Not applicable
(b) Not applicable
(c) Exhibit 8.1 Opinion of Mayer, Brown & Platt, counsel to
Prudential Securities Secured
Financing Corporation, regarding certain tax
matters.
Exhibit 23.1 Consent of Mayer, Brown & Platt
(included in Exhibit 8.1)
Exhibit 99.1 Related Computational Materials
(as defined in Item 5 above).
Exhibit 99.2 Additional Materials.
Exhibit 99.3 Related Computational Materials
(as defined in Item 5 above)
-2-
<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.
PRUDENTIAL SECURITIES SECURED FINANCING
CORPORATION
(Registrant)
Dated: November 12, 1999 By: /s/ JOSEPH M. DONOVAN
------------------------------------------
Name: Joseph M. Donovan
Title: Vice President
-3-
[LETTERHEAD OF MAYER, BROWN & PLATT]
November 12, 1999
Flagship Auto Loan Funding LLC 1999-2
Ladies and Gentlemen:
We have acted as special tax counsel for Prudential Securities Secured
Financing Corporation ("Prudential"), a Delaware corporation, in connection with
the sale and assignment of certain retail installment sale contracts for new and
used automobiles and light trucks by Prudential to Flagship Auto Receivables
Owner Trust 1999-2 (the "Issuer" or the "Trust") formed pursuant to that certain
Amended and Restated Trust Agreement (the "Trust Agreement"), dated as of
November 1, 1999, among Prudential, as holder of the Certificate, Flagship
Credit Corporation ("Flagship Credit"), in its individual capacity, and First
Union National Bank, as Owner Trustee, in exchange for, among other things, the
Flagship Auto Receivables Owner Trust 1999-2 Class A-1 asset backed notes, Class
A-2 asset backed notes, Class A-3 asset backed notes and Class A-4 asset backed
notes (the "Notes"). Prudential has filed with the Securities and Exchange
Commission (the "Commission") a registration statement on Form S-3, File No.
333-52021 (as amended, the "Registration Statement") under the Securities Act of
1933, as amended (the "Act"), for the registration under the Act of certain
securities, including the Notes. Prudential has filed with the Commission
pursuant to Rule 424(b) under the rules and regulations of the Commission under
the Act a supplement, dated November 8, 1999 (the "Prospectus Supplement") to
the prospectus, dated November 8, 1999 (the "Basic Prospectus"), relating to the
Notes and the method of distribution thereof. The Basic Prospectus and the
Prospectus Supplement and any information incorporated therein by reference,
together with any amendment thereof or supplement thereto authorized by
Prudential, are hereinafter called the "Prospectus".
In connection with rendering our opinion, we have examined and relied upon
and base our opinion on (i) the Trust Agreement, (ii) the Owner Trust Purchase
Agreement, (iii) the Registration Statement, (iv) the Prospectus, and (v) such
other documents as we have deemed necessary for purposes of this opinion.
The opinion set forth in this letter is based upon the applicable
provisions of the Internal Revenue Code of 1986, as amended, Treasury
regulations promulgated and proposed thereunder, current positions of the
Internal Revenue Service ("IRS") contained in published Revenue Rulings
<PAGE>
Flagship Auto Loan Funding LLC 1999-2
November 12, 1999
Page 2
and Revenue Procedures, current administrative positions of the IRS and existing
judicial decisions. No tax rulings will be sought from the IRS with respect to
any of the matters discussed herein.
Based upon the foregoing, and subject to the assumptions, qualifications
and limitations set forth in this letter, we are of the opinion that, for
federal income tax purposes: (i) the Trust will not be treated as an association
(or a publicly traded partnership) taxable as a corporation and (ii) the Notes
will be characterized as debt.
The scope of this opinion is expressly limited to the issues set forth
herein, and we express no opinion with respect to any other taxes or collateral
tax consequences with respect to the Receivables or the Trust.
This opinion letter may not be disclosed or relied on in connection with
any transaction other than the transactions contemplated herein. The opinion
rendered herein may not be relied upon for any other purpose; provided that the
opinion rendered herein speaks only as of the date hereof and we have no
responsibility or obligation to update this opinion, or to take into account
changes in law, facts or any other development of which we may later become
aware.
We hereby consent to the filing of this opinion with the Securities and
Exchange Commission and to the use of our name in the Prospectus.
Very truly yours,
/s/ Mayer, Brown & Platt
MAYER, BROWN & PLATT
SML/WAL
PRELIMINARY BACKGROUND INFORMATION FOR
FLAGSHIP AUTO RECEIVABLES OWNER TRUST
ASSET-BACKED NOTES, SERIES 1999-2
$[117,000,000] [TBD]% Class A-1 Notes, Series 1999-2
$[60,000,000] [TBD]% Class A-2 Notes, Series 1999-2
$[43,000,000] [TBD]% Class A-3 Notes, Series 1999-2
$[30,000,000] [TBD]% Class A-4 Notes, Series 1999-2
The information contained herein (the "Computational Materials") is provided by
Prudential Securities Incorporated ("PSI") based on information regarding the
collateral pool provided by Flagship Credit Corporation. No representation is
made by PSI as to the appropriateness, usefulness, accuracy or completeness of
these materials or the assumptions on which they are based. These Computational
Materials are preliminary and will be superseded by any subsequent computational
materials and the prospectus.
All information and assumptions contained herein reflect PSI's assumptions as of
this date and are subject to change. The actual characteristics and performance
of the collateral will differ from the assumptions used in preparing these
materials, which are hypothetical in nature. Changes in the assumptions may have
a material impact on the information set forth in these materials.
This information may not be used or otherwise disseminated in connection with
the offer or sale of these or any other securities, except in connection with
the initial offer or sale of these securities to you to the extent set forth
below. These materials do not constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. Any such offer, or solicitation
of an offer, to buy or sell any security would be made pursuant to a prospectus
which will contain material information not contained in these materials. Such
prospectus will contain all material information in respect of any such security
offered thereby and any decision to invest in such securities should be made
solely in reliance upon such prospectus. Any capitalized terms used but not
defined herein are to be read in conjunction with such prospectus. 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.
PSI (or any of its affiliates) or their officers, directors, analysts or
employees may have positions in the securities, commodities or derivative
instruments thereon referred to here 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 buy or a solicitation of an offer to sell or buy securities,
commodities or derivative instruments mentioned herein. No sale of any
securities, commodities or derivative instruments will be confined without the
purchaser having received the prospectus with such confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
1
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
PRICING INFORMATION
-------------------
<TABLE>
<CAPTION>
Class A-1 Class A-2 Class A-3 Class A-4
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Approximate
Face Amount: $[117,000,000] $[60,000,000] $[43,000,000] $[30,000,000]
Expected Ratings
(S&P/Moody's/Duff): [AAA/Aaa/AAA] [AAA/Aaa/AAA] [AAA/Aaa/AAA] [AAA/Aaa/AAA]
Coupon: [TBD] [TBD] [TBD] [TBD]
Approximate
Price: [TBD] [TBD] [TBD] [TBD]
Yield: [TBD] [TBD] [TBD] [TBD]
Spread: [TBD] bps [TBD] bps [TBD] bps [TBD] bps
Exp. Avg Life
to Call: [0.7] yrs [2.0] yrs [3.0] yrs [3.6] yrs
Exp. Avg Life
to Maturity: [0.7] yrs [2.0] yrs [3.0] yrs [4.1] yrs
Expected 1st
Principal Pmt Date: [12/20/1999] [5/18/2001] [6/18/2002] [6/18/2003]
Exp. Maturity to Call: [5/18/2001] [6/18/2002] [6/18/2003] [7/18/2003]
Exp. Maturity: [5/18/2001] [6/18/2002] [6/18/2003] [9/18/2004]
Stated Maturity: [11/18/2002] [1/18/2004] [11/18/2004] [3/18/2006]
Pricing Speed: 1.5% ABS 1.5% ABS 1.5% ABS 1.5% ABS
Pricing Date: [TBD] [TBD] [TBD] [TBD]
Expected
Settle Date: [November 23, 1999] [November 23, 1999] [November 23, 1999] [November 23, 1999]
Cut-Off Date
(Opening of Business): [November 1, 1999] [November 1, 1999] [November 1, 1999] [November 1, 1999]
Dated Date: [November 23, 1999] [November 23, 1999] [November 23, 1999] [November 23, 1999]
Pmt Delay: [0] days [0] days [0] days [0] days
Interest Pmt: [30/360] [30/360] [30/360] [30/360]
Pmt Terms: Monthly Monthly Monthly Monthly
1st Interest
Payment Date: 12/20/99 12/20/99 12/20/99 12/20/99
Distribution: Public Public Public Public
Offering Offering Offering Offering
Settlement: Book Entry Book Entry Book Entry Book Entry
(DTC) (DTC) (DTC) (DTC)
</TABLE>
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
2
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
<TABLE>
<S> <C> <C> <C> <C>
ERISA Eligibility: Yes Yes Yes Yes
</TABLE>
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
3
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Company Overview
Flagship Credit Corporation ("Flagship")
Flagship Credit Corporation ("Flagship") is an auto finance company
focusing on the non-prime sector of the market. As of June 30, 1999,
Flagship had total assets of approximately $684 million, stockholders
equity of approximately $63.9 million and net income of approximately $790
thousand (pro forma unaudited) for the six months then ended.
Flagship is an indirect wholly owned subsidiary of Copelco Financial
Services Group, Inc. ("Copelco"). As of June 30, 1999, Copelco had total
assets of approximately $4,891 million, stockholders equity of
approximately $334 million and net income of approximately $16 million
(unaudited) for the six months then ended.
Flagship was formed in June 1999 as a result of a merger to combine
Copelco's two auto finance subsidiaries, Franklin Acceptance Corporation
and ProCredit, Inc., under a single corporate umbrella. Flagship
(including its predecessor companies) has been in the auto finance
business since 1957. On a cumulative basis, Flagship and its predecessors
have originated approximately $2 billion in auto loans.
In July 1997 (in the case of ProCredit) and early 1998 (in the case of
Franklin), Flagship's predecessors took various actions designed to
improve the credit quality of the loans originated by the respective
companies. As a result of these efforts, the average credit bureau FICO
score of the obligors for which Flagship or its predecessors have
originated loans has risen from an average of 593 for originations during
January 1998 to the current level of 644 for originations during September
1999.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
4
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Historical Delinquency Information. Delinquency information for Flagship Credit
Corporation is set forth below.
<TABLE>
<CAPTION>
At December 30, 1998 At March 31, 1999 At June 30, 1999 At September 30, 1999
-------------------- ----------------- ---------------- ---------------------
Dollars Percent Dollars Percent Dollars Percent Dollars Percent
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Principal Outstanding $205,874,100.08 100.00% $283,525,482.35 100.00% $403,378,727.76 100.00% $494,833,712.90 100.00%
31-59 Days 3,167,028.59 1.54% 4,132,767.43 1.46% 8,997,069.21 2.23% 13,244,779.13 2.68%
60-89 Days 894,287.11 0.43% 960,713.14 0.34% 1,626,818.51 0.40% 3,421,821.17 0.69%
90 Days and Over 599,529.10 0.29% 716,633.81 0.25% 707,008.54 0.18% 1,781,878.46 0.36%
--------------- ------ --------------- ------ --------------- ------ --------------- ------
Total Delinquencies $ 4,660,844.80 2.26% $ 5,810,114.38 2.05% $ 11,330,896.26 2.81% $ 18,448,478.76 3.73%
</TABLE>
The chart set forth above reflects the portfolio of loans that were originated
after Flagship (or its predecessors) repositioned itself from a "sub-prime"
lender to a "non-prime" lender. The dollar amount of delinquencies does not
include vehicles in repossession that have been charged-off.
Historical Credit Loss Experience. Credit Loss information for loans that are
owned and serviced by Flagship Credit Corporation is set forth below.
<TABLE>
<CAPTION>
Fiscal Year Ended Three Month Periods Ended
------------------ ------------------------------------------------------
December 31, 1998 March 31, 1999 June 30, 1999 September 30, 1999
----------------- -------------- ------------- ------------------
<S> <C> <C> <C> <C>
Average Principal Balance (1) $105,371,033 $252,463,079 $363,594,884 $466,346,168
Gross Charge-Offs (2) 2,207,395 1,499,984 1,495,829 2,880,746
Recoveries (3) 133,929 236,154 169,674 162,094
------------ ------------ ------------ ------------
Net Charge-Offs 2,073,466 1,263,830 1,326,155 2,718,652
Net Charge-Offs as Percent of
Average Principal Balance (4) 1.97% 2.00% 1.46% 2.33%
</TABLE>
The chart set forth above reflects the portfolio of loans that were originated
after Flagship (or its predecessors) repositioned itself from a "sub-prime"
lender to a "non-prime" lender.
(1) Average Principal Balance represents the average of the month-end balances
during the period.
(2) Gross Charge-Offs represent the outstanding principal balance at the time
of charge off less the estimated net sales proceeds from the sale of the
related vehicles.
(3) Recoveries represent the difference between estimated sales proceeds and
actual proceeds of the related vehicles.
(4) Net Charge-Offs as a Percent of Average Principal Balance is annualized
based on four three-month quarters.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
5
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Title of Securities: Flagship Auto Receivables Owner Trust 1999-2,
Asset-Backed Notes, Series 1999-2, Class A-1
Notes, Class A-2 Notes, Class A-3 Notes and
Class A-4 Notes (collectively, the "Notes").
Securities Offered: $[117,000,000], [TBD]% Class A-1 Notes;
$[60,000,000], [TBD]% Class A-2 Notes;
$[43,000,000], [TBD]% Class A-3 Notes;
$[30,000,000], [TBD]% Class A-4 Notes.
Distribution and Form: The Notes are being publicly offered. The Notes
will be available in Book Entry Form through
DTC, Euroclear or CEDEL.
Minimum Denomination: $1,000 and increments of $1,000.
Structure: The Notes will be time-tranched and insured by
MBIA.
Collateral: The Transaction is collateralized by, among
other things, a pool of consumer automobile
installment sales contracts (the "Auto Loans"),
including the principal and interest payments
received thereon after the Cut-off Date, and
rights in and to the Collection Account and any
other bank accounts opened by the Issuer (each,
an "Account"). Approximately $[270,270,270.27]
of collateral, as of the Cut-off Date, will be
deposited at closing and support the Notes (the
"Initial Collateral Balance").
Issuer: Flagship Auto Receivables Owner Trust 1999-2
Seller: Flagship Auto Loan Funding LLC 1999-2, a
bankruptcy-remote, special purpose, limited
liability company wholly-owned by Flagship
Credit Corporation.
Originator/Servicer: Flagship Credit Corporation ("Flagship")
Servicing Fee: 200 bps
Bond Insurer: MBIA Insurance Corporation ("MBIA" or the
"Insurer")
Sole Manager: Prudential Securities
Indenture Trustee: Harris Trust and Savings Bank (the "Trustee")
Owner Trustee: First Union National Bank
Cut-Off Date: Close of Business on October 31, 1999
Expected Pricing: [TBD]
Expected Closing Date: [November 23, 1999]
Determination Date: The 5th Business Day immediately preceding such
Payment Date.
Payment Date: The 18th day of each month (or if any such date
is not a business day, on the first business day
thereafter), commencing on [December 20, 1999].
Expected Ratings: The Notes will be rated AAA, Aaa and AAA by
Standard and Poor's, Moody's and Duff & Phelps,
respectively.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
6
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Flow of Funds: On each Payment Date, provided that an Event of
Default is not in effect, distributions will be
made by the Trustee according to the following
priority from Available Funds and amounts
withdrawn from the Spread Account and any other
Accounts as specified by the indenture:
(i) To the Trustee and Collateral Agent, the
Trustee and Collateral Agent Fee and other
amounts due to the Trustee and Collateral
Agent (other than fees) subject to a
maximum expense cap;
(ii) To the Servicer, the Servicing Fee;
(iii) To the Noteholders, the Interest Payment
Amount on a pro-rata basis;
(iv) To the Insurer, the Insurer Premium;
(v) To the Noteholders, the Noteholders'
Principal Payment Amount paid to Class
A-1, Class A-2, Class A-3 and Class A-4 on
a sequential basis;
(vi) To any successor servicer, the Trustee and
MBIA, any reasonable and nonrecurring fees
and expenses related to the transfer of
servicing and the appointment of a
successor servicer subject to a maximum
expense cap;
(vii) To the Insurer, any Reimbursement Amounts;
(viii) To the Spread Account, the amount
necessary to maintain the Requisite Spread
Account Amount;
(ix) To the Noteholders, the Additional
Noteholders' Principal Payment Amount;
(x) Re-liening Expenses;
(xi) To the Trustee, Collateral Agent, any
successor servicer, and MBIA, any items
not paid under clause (i) or (iv) above;
(xii) To the Seller, the remaining amount, if
any, of Available Funds.
In addition, any funds in the Spread Account in
excess of the required amount will be paid to
the Notes, sequentially, to further reduce the
principal balance of the Notes to the Notes
Target Amount.
Available Funds: For any Payment Date, the following amounts
related to the preceding Collection Period will
be available for distribution:
(i) All principal and interest payments on the
Auto Loans;
(ii) Recoveries or other amounts related to
Charged-off Auto Loans;
(iii) Investment earnings on funds deposited in
the Accounts;
(iv) The amount paid for each Auto Loan that
was repurchased by the Originator or the
Servicer.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
7
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Interest Payment Amount: The Notes will bear interest at a fixed rate per
annum, calculated on a 30/360 basis, and with
respect to the first Payment Date, shall accrue
from and including the Closing Date to but
excluding, such Payment Date.
Principal Payments: Principal of the notes will be payable on each
Payment Date in an amount equal to the sum of
(i) the Noteholders' Principal Payment Amount,
(ii) the Additional Noteholders' Principal
Payment Amount and (iii) the Released Funds
Principal Payment Amount.
Noteholders' Principal
Payment Amount: With respect to any Payment Date, the lesser of
(a) one hundred percent (100%) of the Principal
Payment Amount for such Payment Date or (b) an
amount necessary to reduce the aggregate
principal amount of the notes to the Notes
Target Amount for such Payment Date.
Notwithstanding the foregoing, all outstanding
principal and interest with respect to a class
of notes will be payable in full on the Final
Scheduled Maturity Date for such class of notes.
Notes Target Amount: With respect to any Payment Date, the product of
the Notes Target Percentage and the outstanding
Collateral Balance.
Notes Target Percentage: (i) 89% if the Level I Portfolio Performance
Indicator is not triggered or (ii) 82% if the
Level I Portfolio Performance Indicator is
triggered and has not been cured; provided that
if an Insurance Agreement Indicator is
triggered, the Notes Target Percentage shall
equal 0%.
Principal Payment Amount: With respect to any Payment Date, the sum of (i)
collections on Auto Loans (other than
Charged-off Auto Loans) allocable to principal
including full and partial prepayments; (ii) the
principal amount paid to repurchase an Auto
Loan; and (iii) the principal balance of each
Auto Loan that first became a Charged-off Auto
Loan during the preceding Collection Period
provided that any Charged-off Auto Loan replaced
by a Substitute Auto Loan shall not be counted
in this clause (iii); and (iv) the aggregate
amount of Cram Down Losses with respect to the
Auto Loans that have occurred during the
preceding Collection Period.
Additional Noteholders'
Principal Payment Amount: With respect to any Payment Date, the lesser of
(i) the amount necessary to reduce the
outstanding principal amount of the Notes to the
Notes Target Amount (after payment of (i)
through (v) in "Flow of Funds") and (ii) the
amount of Available Funds remaining after
payment of (i) through (viii) in "Flow of Funds"
for such Payment Date.
Released Funds Principal
Payment Amount: For any Payment Date, the lesser of (a) the
amount by which the funds in the Spread Account
(after giving effect to all payments and
withdrawals on that payment date) exceed the
Requisite Spread Account Amount and (b) the
amount necessary (after giving effect to the
Noteholders' Principal Payment Amount and the
Additional Noteholders' Principal Payment Amount
on that date) to reduce the aggregate principal
amount of the notes to the Notes Target Amount.
Charged-off Auto Loan: With respect to any Collection Period, an Auto
Loan (i) that has been charged-off in accordance
with the Servicer's credit and collection
policies, (ii) for which 90% or more of any
scheduled payment on such Auto Loan is 123 days
or more delinquent as of the end of such
Collection Period, (iii) for which the related
vehicle has been repossessed and sold or (iv)
that is deemed uncollectible by the Servicer.
Cram Down Losses: If, during an insolvency proceeding, a court
issued an order which reduces the amount owed on
an Auto Loan, a Cram Down Loss is the amount
equal to such reduction in principal balance.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
8
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Level I Portfolio
Performance Indicator: Means the violation of a Level I Delinquency
Test, Net Loss Test or Cumulative Net Loss Test.
Insurance Agreement
Indicator: Means the violation of the Level II Delinquency
Test, Net Loss Test or Cumulative Net Loss Test
or the occurrence of other events specified in
the Insurance Agreement.
Level I Delinquency Test: Means the 4-month average Delinquency Ratio is
less than 6.65%.
Level I Net Loss Test: Means the 4-month average Net Loss Rate is less
than 8.0%.
Level I Cumulative Net
Loss Test: Means the Cumulative Net Loss Rate is less than
the following:
Cumulative
Collection Period Net Loss Rate
----------------- -------------
6-8 1.35%
9-11 1.70%
12-14 3.05%
15-17 4.40%
18-20 5.60%
21-23 6.60%
24-26 7.50%
27-29 8.30%
30-32 8.90%
33- 9.30%
Level II Delinquency
Test: Means the 4-month average Delinquency Ratio is
less than or equal to 8.08%.
Level II Net Loss Test: Means the 4-month average Net Loss Rate is less
than or equal to 10.0%.
Level II Cumulative Net
Loss Test: Means the Cumulative Net Loss Rate is less than
or equal to the following:
Cumulative
Collection Period Net Loss Rate
----------------- -------------
6-8 1.75%
9-11 2.40%
12-14 3.70%
15-17 5.35%
18-20 6.85%
21-23 8.05%
24-26 9.15%
27-29 10.05%
30-32 10.75%
33- 11.30%
Delinquency Ratio: With respect to any Determination Date, means
the outstanding principal balance of loans > 31
days or more contractually delinquent as of the
end of the preceding Collection Period (other
than Charged-off Auto Loans and, from and after
the 25th Collection Period, Auto Loans for which
the related Obligor has paid during the
preceding six Collection Periods on the
aggregate amount not less than the sum of six
monthly payments divided by the outstanding
portfolio balance on the last day of the
preceding Collection Period.
Net Loss Rate: With respect to any Determination Date twelve
times net losses related to the preceding
Collection Period divided by the outstanding
portfolio balance on the last day of the
preceding Collection Period.
Cumulative Net Loss Rate: With respect to any Determination Date, means
the quotient of the aggregate amount of net
losses with respect to the Auto Loans in the
collateral pool since the closing date, divided
by the Initial Collateral Balance.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
9
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Credit Enhancement: Subordination, Spread Account, Note Insurance
Policy
Subordination: The Issuer's first-loss piece is subordinate to
the Notes. Initially, the Issuer's first-loss
piece shall equal 7.5% of the Initial Collateral
Balance.
Spread Account: If, on any Payment Date, the Available Funds are
insufficient to pay interest and interest due on
the Notes for any Payment Date (and any other
item included in "Flow of Funds," (i) through
(vi)), amounts on deposit in the Spread Account
will be available to make up any such shortfall.
The Spread Account will be funded at Closing in
an amount equal to 3% of the Initial Collateral
Balance. The Requisite Spread Account Amount
will be the greater of (1) the lesser of (a) 3%
of the Initial Collateral Balance and (b) 5% of
the outstanding Collateral Balance (the
"Requisite Spread Account Amount"), and (2) the
Floor Amount. The Spread Account will receive
additional funds in accordance with the "Flow of
Funds" if needed to maintain the Requisite
Spread Account Amount. Amounts on deposit in the
Spread Account which are in excess of the
Requisite Spread Account Amount will be paid to
the Notes, sequentially, to further reduce the
principal balance of the Notes to the Notes
Target Amount and then will be released to the
Seller.
The "Floor Amount" is equal to the greater of
(i) 1% of the Initial Collateral Balance and
(ii) the amount such that the sum of (a) the
amount on deposit in the Spread Account and (b)
the Overcollateralization Amount is greater than
2% of the Initial Collateral Balance.
The "Overcollateralization Amount" is the
difference between the outstanding Collateral
Balance as of the end of the preceding
Collection Period and the outstanding principal
balance of the Notes.
Note Insurance Policy: MBIA will insure the payment of timely interest
and ultimate principal of the Notes.
Substitutions: Flagship will have the option to substitute Auto
Loans for Charged-Off Auto Loans provided that
Substitute Auto Loans must in the aggregate (i)
be at least equal in outstanding principal
balance and at least equal in terms of credit
quality to the Auto Loans being replaced; (ii)
not have final scheduled maturity dates later
than the final scheduled maturity dates of the
Auto Loans being replaced; (iii) be eligible
Auto Loans (as specified in the transaction
documents); (iv) satisfy all of the
representations and warranties contained in the
Sales and Servicing Agreement; (v) never have
been more than thirty-one (31) days delinquent,
and (vi) have APR's at least equal to or greater
than the APR's of the Auto Loans being replaced.
Substitutions for Charged-off Auto Loans shall
not exceed 10% of the Initial Collateral
Balance. All Charged-off Auto Loans will be used
in calculating performance triggers even when
removed from the pool.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
10
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Optional Redemption
(Full Redemption): The Notes may be redeemed by the issuer, in
whole but not in part, at par plus accrued
interest on any Payment Date on which the
outstanding principal amount of the Notes is
less than or equal to 10% of the Initial Bond
Balance.
Tax Status: The Notes will be characterized as debt for
federal income tax purposes. Please see the
Prospectus for a full description of the tax
characterization of the Notes.
ERISA Eligible: Subject to the restrictions and considerations
discussed under "ERISA Considerations," the
notes will be eligible for purchase by employee
benefit plans. An investor that is, or is acting
on behalf of, an employee benefit plan subject
to ERISA or Section 4975 of the Code will be
deemed to represent and warrant that its
investment in the notes, as applicable, will not
result in a non-exempt prohibited transaction
under ERISA or Section 4975 of the Code.
Further Banking: Robert Schwartz (212-778-4638), Shelby
Information: Carvalho (212-778-4127), Caroline Owen
(212-778-8038)
Trading: Greg Richter or Rob Karr (212-778-2741)
FSG: Lina Hsu (212-778-1451), Matt De Angelis
(212-778-2458) Wendy Liu (212-778-4876)
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
11
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
<TABLE>
<CAPTION>
CLASS A1 CLASS A2
0.00% 1.00% 1.30% 1.50% 1.70% 2.00% 0.00% 1.00% 1.30% 1.50% 1.70% 2.00%
Payment Date
- ----------------------------------------------------------------------------- ------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Closing Date 100 100 100 100 100 100 100 100 100 100 100 100
November 18, 2000 62 40 33 28 23 16 100 100 100 100 100 100
November 18, 2001 27 0 0 0 0 0 100 84 62 47 32 9
November 18, 2002 0 0 0 0 0 0 75 1 0 0 0 0
November 18, 2003 0 0 0 0 0 0 0 0 0 0 0 0
November 18, 2004 0 0 0 0 0 0 0 0 0 0 0 0
November 18, 2005 0 0 0 0 0 0 0 0 0 0 0 0
Weighted Avg Life 1.4 0.9 0.8 0.7 0.7 0.6 3.3 2.4 2.2 2.0 1.9 1.7
<CAPTION>
CLASS A3 CLASS A4
0.00% 1.00% 1.30% 1.50% 1.70% 2.00% 0.00% 1.00% 1.30% 1.50% 1.70% 2.00%
Payment Date
- ----------------------------------------------------------------------------- ------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Closing Date 100 100 100 100 100 100 100 100 100 100 100 100
November 18, 2000 100 100 100 100 100 100 100 100 100 100 100 100
November 18, 2001 100 100 100 100 100 100 100 100 100 100 100 100
November 18, 2002 100 100 69 47 24 0 100 100 100 100 100 85
November 18, 2003 84 7 0 0 0 0 100 100 0 0 0 0
November 18, 2004 0 0 0 0 0 0 0 0 0 0 0 0
November 18, 2005 0 0 0 0 0 0 0 0 0 0 0 0
Weighted Avg Life 4.3 3.5 3.2 3.0 2.8 2.5 4.8 4.2 4.0 3.6 3.4 3.1
</TABLE>
Note: Decrement tables and weighted average lives run to call.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
12
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A1 AAA/Aaa CLASS
*** TO CALL ***
<TABLE>
<CAPTION>
CURRENT BALANCE: $117,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $117,000,000.00 BOND A1 BE-YIELD TABLE YIELD TABLE DATE: 11/23/99
PREPAYMENT SPEED
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 6.767 6.590 6.700 6.739 6.795 6.839
99-24+ 6.743 6.577 6.680 6.717 6.769 6.810
99-25 6.719 6.564 6.661 6.695 6.744 6.782
99-25+ 6.696 6.552 6.641 6.673 6.719 6.754
99-26 6.672 6.539 6.622 6.651 6.693 6.726
99-26+ 6.648 6.527 6.602 6.630 6.668 6.698
99-27 6.625 6.514 6.583 6.608 6.642 6.670
99-27+ 6.601 6.501 6.564 6.586 6.617 6.641
99-28 6.578 6.489 6.544 6.564 6.592 6.613
99-28+ 6.554 6.476 6.525 6.542 6.566 6.585
99-29 6.530 6.464 6.505 6.520 6.541 6.557
99-29+ 6.507 6.451 6.486 6.498 6.515 6.529
99-30 6.483 6.439 6.466 6.476 6.490 6.501
99-30+ 6.459 6.426 6.447 6.454 6.465 6.473
99-31 6.436 6.414 6.427 6.432 6.439 6.445
99-31+ 6.412 6.401 6.408 6.411 6.414 6.417
100-00 6.389 6.389 6.389 6.389 6.389 6.389
100-00+ 6.365 6.376 6.369 6.367 6.363 6.361
100-01 6.342 6.363 6.350 6.345 6.338 6.333
100-01+ 6.318 6.351 6.330 6.323 6.313 6.305
100-02 6.294 6.338 6.311 6.301 6.287 6.277
100-02+ 6.271 6.326 6.292 6.279 6.262 6.249
100-03 6.247 6.313 6.272 6.258 6.237 6.221
100-03+ 6.224 6.301 6.253 6.236 6.212 6.193
100-04 6.200 6.288 6.234 6.214 6.186 6.165
100-04+ 6.177 6.276 6.214 6.192 6.161 6.137
100-05 6.153 6.263 6.195 6.170 6.136 6.109
100-05+ 6.130 6.251 6.176 6.149 6.111 6.081
100-06 6.106 6.238 6.156 6.127 6.085 6.053
100-06+ 6.083 6.226 6.137 6.105 6.060 6.025
100-07 6.059 6.213 6.118 6.083 6.035 5.997
100-07+ 6.036 6.201 6.098 6.062 6.010 5.969
First Payment 0.069 0.069 0.069 0.069 0.069 0.069
Average Life 0.703 1.359 0.860 0.761 0.653 0.588
Last Payment 1.486 2.736 1.819 1.653 1.403 1.236
Mod.Dur. @ 100-00 0.663 1.247 0.805 0.715 0.617 0.557
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
13
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A2 AAA/Aaa CLASS
*** TO CALL ***
<TABLE>
<CAPTION>
CURRENT BALANCE: $60,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $60,000,000.00 BOND A2 BE-YIELD TABLE YIELD TABLE DATE: 11/23/99
PREPAYMENT SPEED
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 6.793 6.742 6.771 6.783 6.803 6.819
99-24+ 6.784 6.737 6.764 6.775 6.794 6.809
99-25 6.776 6.731 6.756 6.767 6.784 6.798
99-25+ 6.767 6.726 6.749 6.759 6.775 6.788
99-26 6.758 6.721 6.742 6.751 6.766 6.778
99-26+ 6.750 6.715 6.735 6.743 6.757 6.768
99-27 6.741 6.710 6.727 6.735 6.748 6.758
99-27+ 6.733 6.704 6.720 6.727 6.738 6.747
99-28 6.724 6.699 6.713 6.719 6.729 6.737
99-28+ 6.716 6.693 6.706 6.711 6.720 6.727
99-29 6.707 6.688 6.699 6.703 6.711 6.717
99-29+ 6.698 6.683 6.692 6.695 6.702 6.707
99-30 6.690 6.677 6.684 6.687 6.692 6.696
99-30+ 6.681 6.672 6.677 6.679 6.683 6.686
99-31 6.673 6.666 6.670 6.672 6.674 6.676
99-31+ 6.664 6.661 6.663 6.664 6.665 6.666
100-00 6.656 6.656 6.656 6.656 6.656 6.656
100-00+ 6.647 6.650 6.648 6.648 6.646 6.645
100-01 6.638 6.645 6.641 6.640 6.637 6.635
100-01+ 6.630 6.639 6.634 6.632 6.628 6.625
100-02 6.621 6.634 6.627 6.624 6.619 6.615
100-02+ 6.613 6.628 6.620 6.616 6.610 6.605
100-03 6.604 6.623 6.612 6.608 6.600 6.595
100-03+ 6.596 6.618 6.605 6.600 6.591 6.584
100-04 6.587 6.612 6.598 6.592 6.582 6.574
100-04+ 6.579 6.607 6.591 6.584 6.573 6.564
100-05 6.570 6.601 6.584 6.576 6.564 6.554
100-05+ 6.562 6.596 6.577 6.568 6.555 6.544
100-06 6.553 6.591 6.569 6.560 6.545 6.534
100-06+ 6.544 6.585 6.562 6.552 6.536 6.523
100-07 6.536 6.580 6.555 6.544 6.527 6.513
100-07+ 6.527 6.574 6.548 6.536 6.518 6.503
First Payment 1.486 2.736 1.819 1.653 1.403 1.236
Average Life 2.010 3.313 2.426 2.168 1.864 1.671
Last Payment 2.569 3.903 3.069 2.736 2.403 2.153
Mod.Dur. @ 100-00 1.825 2.887 2.174 1.958 1.701 1.534
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
14
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A3 AAA/Aaa CLASS
*** TO CALL ***
<TABLE>
<CAPTION>
CURRENT BALANCE: $43,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $43,000,000.00 BOND A3 BE-YIELD TABLE YIELD TABLE DATE: 11/23/99
PREPAYMENT SPEED
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 6.930 6.905 6.917 6.924 6.937 6.948
99-24+ 6.924 6.900 6.912 6.919 6.931 6.941
99-25 6.918 6.896 6.907 6.913 6.924 6.934
99-25+ 6.912 6.892 6.902 6.908 6.918 6.927
99-26 6.907 6.887 6.897 6.902 6.911 6.920
99-26+ 6.901 6.883 6.892 6.897 6.905 6.913
99-27 6.895 6.879 6.887 6.891 6.899 6.906
99-27+ 6.889 6.874 6.881 6.885 6.892 6.899
99-28 6.883 6.870 6.876 6.880 6.886 6.892
99-28+ 6.877 6.866 6.871 6.874 6.880 6.885
99-29 6.871 6.861 6.866 6.869 6.873 6.878
99-29+ 6.865 6.857 6.861 6.863 6.867 6.871
99-30 6.859 6.853 6.856 6.858 6.861 6.864
99-30+ 6.853 6.848 6.851 6.852 6.854 6.857
99-31 6.847 6.844 6.846 6.847 6.848 6.849
99-31+ 6.841 6.840 6.841 6.841 6.842 6.842
100-00 6.835 6.835 6.835 6.835 6.835 6.835
100-00+ 6.830 6.831 6.830 6.830 6.829 6.828
100-01 6.824 6.827 6.825 6.824 6.823 6.821
100-01+ 6.818 6.822 6.820 6.819 6.816 6.814
100-02 6.812 6.818 6.815 6.813 6.810 6.807
100-02+ 6.806 6.814 6.810 6.808 6.804 6.800
100-03 6.800 6.810 6.805 6.802 6.797 6.793
100-03+ 6.794 6.805 6.800 6.797 6.791 6.786
100-04 6.788 6.801 6.795 6.791 6.785 6.779
100-04+ 6.782 6.797 6.790 6.785 6.779 6.772
100-05 6.776 6.792 6.784 6.780 6.772 6.765
100-05+ 6.770 6.788 6.779 6.774 6.766 6.758
100-06 6.764 6.784 6.774 6.769 6.760 6.751
100-06+ 6.759 6.779 6.769 6.763 6.753 6.744
100-07 6.753 6.775 6.764 6.758 6.747 6.737
100-07+ 6.747 6.771 6.759 6.752 6.741 6.730
First Payment 2.569 3.903 3.069 2.736 2.403 2.153
Average Life 3.009 4.303 3.550 3.229 2.795 2.496
Last Payment 3.569 4.736 4.153 3.819 3.319 2.903
Mod.Dur. @ 100-00 2.639 3.622 3.060 2.812 2.469 2.226
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
15
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A4 AAA/Aaa CLASS
*** TO CALL ***
<TABLE>
<CAPTION>
CURRENT BALANCE: $30,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $30,000,000.00 BOND A4 BE-YIELD TABLE YIELD TABLE DATE: 11/23/99
PREPAYMENT SPEED
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 7.075 7.058 7.065 7.069 7.080 7.089
99-24+ 7.070 7.054 7.061 7.065 7.075 7.083
99-25 7.065 7.050 7.056 7.060 7.070 7.077
99-25+ 7.060 7.046 7.052 7.055 7.064 7.071
99-26 7.055 7.042 7.048 7.051 7.059 7.065
99-26+ 7.050 7.038 7.043 7.046 7.054 7.059
99-27 7.045 7.034 7.039 7.041 7.048 7.053
99-27+ 7.040 7.030 7.034 7.037 7.043 7.048
99-28 7.035 7.026 7.030 7.032 7.038 7.042
99-28+ 7.030 7.022 7.026 7.027 7.032 7.036
99-29 7.025 7.018 7.021 7.023 7.027 7.030
99-29+ 7.020 7.015 7.017 7.018 7.022 7.024
99-30 7.015 7.011 7.012 7.013 7.016 7.018
99-30+ 7.010 7.007 7.008 7.009 7.011 7.012
99-31 7.005 7.003 7.004 7.004 7.006 7.007
99-31+ 7.000 6.999 6.999 7.000 7.000 7.001
100-00 6.995 6.995 6.995 6.995 6.995 6.995
100-00+ 6.990 6.991 6.990 6.990 6.990 6.989
100-01 6.985 6.987 6.986 6.986 6.984 6.983
100-01+ 6.980 6.983 6.982 6.981 6.979 6.977
100-02 6.975 6.979 6.977 6.976 6.974 6.971
100-02+ 6.970 6.975 6.973 6.972 6.968 6.966
100-03 6.965 6.971 6.969 6.967 6.963 6.960
100-03+ 6.960 6.967 6.964 6.962 6.958 6.954
100-04 6.955 6.963 6.960 6.958 6.952 6.948
100-04+ 6.950 6.959 6.955 6.953 6.947 6.942
100-05 6.945 6.956 6.951 6.948 6.942 6.936
100-05+ 6.940 6.952 6.947 6.944 6.936 6.931
100-06 6.935 6.948 6.942 6.939 6.931 6.925
100-06+ 6.930 6.944 6.938 6.935 6.926 6.919
100-07 6.925 6.940 6.933 6.930 6.920 6.913
100-07+ 6.920 6.936 6.929 6.925 6.915 6.907
First Payment 3.569 4.736 4.153 3.819 3.319 2.903
Average Life 3.646 4.813 4.229 3.966 3.395 3.054
Last Payment 3.653 4.819 4.236 3.986 3.403 3.069
Mod.Dur. @ 100-00 3.125 3.970 3.556 3.363 2.934 2.669
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
16
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A1 AAA/Aaa CLASS
*** TO MATURITY ***
<TABLE>
<CAPTION>
CURRENT BALANCE: $117,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $117,000,000.00 BOND A1 BE-YIELD TABLE YIELD TABLE DATE: 11/23/99
PREPAYMENT SPEED
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 6.767 6.590 6.700 6.739 6.795 6.839
99-24+ 6.743 6.577 6.680 6.717 6.769 6.810
99-25 6.719 6.564 6.661 6.695 6.744 6.782
99-25+ 6.696 6.552 6.641 6.673 6.719 6.754
99-26 6.672 6.539 6.622 6.651 6.693 6.726
99-26+ 6.648 6.527 6.602 6.630 6.668 6.698
99-27 6.625 6.514 6.583 6.608 6.642 6.670
99-27+ 6.601 6.501 6.564 6.586 6.617 6.641
99-28 6.578 6.489 6.544 6.564 6.592 6.613
99-28+ 6.554 6.476 6.525 6.542 6.566 6.585
99-29 6.530 6.464 6.505 6.520 6.541 6.557
99-29+ 6.507 6.451 6.486 6.498 6.515 6.529
99-30 6.483 6.439 6.466 6.476 6.490 6.501
99-30+ 6.459 6.426 6.447 6.454 6.465 6.473
99-31 6.436 6.414 6.427 6.432 6.439 6.445
99-31+ 6.412 6.401 6.408 6.411 6.414 6.417
100-00 6.389 6.389 6.389 6.389 6.389 6.389
100-00+ 6.365 6.376 6.369 6.367 6.363 6.361
100-01 6.342 6.363 6.350 6.345 6.338 6.333
100-01+ 6.318 6.351 6.330 6.323 6.313 6.305
100-02 6.294 6.338 6.311 6.301 6.287 6.277
100-02+ 6.271 6.326 6.292 6.279 6.262 6.249
100-03 6.247 6.313 6.272 6.258 6.237 6.221
100-03+ 6.224 6.301 6.253 6.236 6.212 6.193
100-04 6.200 6.288 6.234 6.214 6.186 6.165
100-04+ 6.177 6.276 6.214 6.192 6.161 6.137
100-05 6.153 6.263 6.195 6.170 6.136 6.109
100-05+ 6.130 6.251 6.176 6.149 6.111 6.081
100-06 6.106 6.238 6.156 6.127 6.085 6.053
100-06+ 6.083 6.226 6.137 6.105 6.060 6.025
100-07 6.059 6.213 6.118 6.083 6.035 5.997
100-07+ 6.036 6.201 6.098 6.062 6.010 5.969
First Payment 0.069 0.069 0.069 0.069 0.069 0.069
Average Life 0.703 1.359 0.860 0.761 0.653 0.588
Last Payment 1.486 2.736 1.819 1.653 1.403 1.236
Mod.Dur. @ 100-00 0.663 1.247 0.805 0.715 0.617 0.557
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
17
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A2 AAA/Aaa CLASS
*** TO MATURITY ***
<TABLE>
<CAPTION>
CURRENT BALANCE: $60,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $60,000,000.00 BOND A2 BE-YIELD TABLE YIELD TABLE DATE: 11/23/99
PREPAYMENT SPEED
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 6.793 6.742 6.771 6.783 6.803 6.819
99-24+ 6.784 6.737 6.764 6.775 6.794 6.809
99-25 6.776 6.731 6.756 6.767 6.784 6.798
99-25+ 6.767 6.726 6.749 6.759 6.775 6.788
99-26 6.758 6.721 6.742 6.751 6.766 6.778
99-26+ 6.750 6.715 6.735 6.743 6.757 6.768
99-27 6.741 6.710 6.727 6.735 6.748 6.758
99-27+ 6.733 6.704 6.720 6.727 6.738 6.747
99-28 6.724 6.699 6.713 6.719 6.729 6.737
99-28+ 6.716 6.693 6.706 6.711 6.720 6.727
99-29 6.707 6.688 6.699 6.703 6.711 6.717
99-29+ 6.698 6.683 6.692 6.695 6.702 6.707
99-30 6.690 6.677 6.684 6.687 6.692 6.696
99-30+ 6.681 6.672 6.677 6.679 6.683 6.686
99-31 6.673 6.666 6.670 6.672 6.674 6.676
99-31+ 6.664 6.661 6.663 6.664 6.665 6.666
100-00 6.656 6.656 6.656 6.656 6.656 6.656
100-00+ 6.647 6.650 6.648 6.648 6.646 6.645
100-01 6.638 6.645 6.641 6.640 6.637 6.635
100-01+ 6.630 6.639 6.634 6.632 6.628 6.625
100-02 6.621 6.634 6.627 6.624 6.619 6.615
100-02+ 6.613 6.628 6.620 6.616 6.610 6.605
100-03 6.604 6.623 6.612 6.608 6.600 6.595
100-03+ 6.596 6.618 6.605 6.600 6.591 6.584
100-04 6.587 6.612 6.598 6.592 6.582 6.574
100-04+ 6.579 6.607 6.591 6.584 6.573 6.564
100-05 6.570 6.601 6.584 6.576 6.564 6.554
100-05+ 6.562 6.596 6.577 6.568 6.555 6.544
100-06 6.553 6.591 6.569 6.560 6.545 6.534
100-06+ 6.544 6.585 6.562 6.552 6.536 6.523
100-07 6.536 6.580 6.555 6.544 6.527 6.513
100-07+ 6.527 6.574 6.548 6.536 6.518 6.503
First Payment 1.486 2.736 1.819 1.653 1.403 1.236
Average Life 2.010 3.313 2.426 2.168 1.864 1.671
Last Payment 2.569 3.903 3.069 2.736 2.403 2.153
Mod.Dur. @ 100-00 1.825 2.887 2.174 1.958 1.701 1.534
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
18
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A3 AAA/Aaa CLASS
*** TO MATURITY ***
<TABLE>
<CAPTION>
CURRENT BALANCE: $43,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $43,000,000.00 BOND A3 BE-YIELD TABLE YIELD TABLE DATE: 11/23/99
PREPAYMENT SPEED
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 6.930 6.905 6.917 6.924 6.937 6.948
99-24+ 6.924 6.900 6.912 6.919 6.931 6.941
99-25 6.918 6.896 6.907 6.913 6.924 6.934
99-25+ 6.912 6.892 6.902 6.908 6.918 6.927
99-26 6.907 6.887 6.897 6.902 6.911 6.920
99-26+ 6.901 6.883 6.892 6.897 6.905 6.913
99-27 6.895 6.879 6.887 6.891 6.899 6.906
99-27+ 6.889 6.874 6.881 6.885 6.892 6.899
99-28 6.883 6.870 6.876 6.880 6.886 6.892
99-28+ 6.877 6.866 6.871 6.874 6.880 6.885
99-29 6.871 6.861 6.866 6.869 6.873 6.878
99-29+ 6.865 6.857 6.861 6.863 6.867 6.871
99-30 6.859 6.853 6.856 6.858 6.861 6.864
99-30+ 6.853 6.848 6.851 6.852 6.854 6.857
99-31 6.847 6.844 6.846 6.847 6.848 6.849
99-31+ 6.841 6.840 6.841 6.841 6.842 6.842
100-00 6.835 6.835 6.835 6.835 6.835 6.835
100-00+ 6.830 6.831 6.830 6.830 6.829 6.828
100-01 6.824 6.827 6.825 6.824 6.823 6.821
100-01+ 6.818 6.822 6.820 6.819 6.816 6.814
100-02 6.812 6.818 6.815 6.813 6.810 6.807
100-02+ 6.806 6.814 6.810 6.808 6.804 6.800
100-03 6.800 6.810 6.805 6.802 6.797 6.793
100-03+ 6.794 6.805 6.800 6.797 6.791 6.786
100-04 6.788 6.801 6.795 6.791 6.785 6.779
100-04+ 6.782 6.797 6.790 6.785 6.779 6.772
100-05 6.776 6.792 6.784 6.780 6.772 6.765
100-05+ 6.770 6.788 6.779 6.774 6.766 6.758
100-06 6.764 6.784 6.774 6.769 6.760 6.751
100-06+ 6.759 6.779 6.769 6.763 6.753 6.744
100-07 6.753 6.775 6.764 6.758 6.747 6.737
100-07+ 6.747 6.771 6.759 6.752 6.741 6.730
First Payment 2.569 3.903 3.069 2.736 2.403 2.153
Average Life 3.009 4.303 3.550 3.229 2.795 2.496
Last Payment 3.569 4.736 4.153 3.819 3.319 2.903
Mod.Dur. @ 100-00 2.639 3.622 3.060 2.812 2.469 2.226
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
19
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A4 AAA/Aaa CLASS
*** TO MATURITY ***
<TABLE>
<CAPTION>
CURRENT BALANCE: $30,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $30,000,000.00 BOND A4 BE-YIELD TABLE YIELD TABLE DATE: 11/23/99
PREPAYMENT SPEED
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 7.068 7.055 7.060 7.064 7.073 7.082
99-24+ 7.063 7.051 7.056 7.060 7.068 7.077
99-25 7.059 7.047 7.052 7.055 7.063 7.072
99-25+ 7.054 7.043 7.048 7.051 7.058 7.066
99-26 7.050 7.040 7.044 7.047 7.054 7.061
99-26+ 7.045 7.036 7.040 7.042 7.049 7.055
99-27 7.041 7.032 7.036 7.038 7.044 7.050
99-27+ 7.036 7.028 7.031 7.034 7.039 7.044
99-28 7.031 7.025 7.027 7.029 7.034 7.039
99-28+ 7.027 7.021 7.023 7.025 7.029 7.033
99-29 7.022 7.017 7.019 7.021 7.024 7.028
99-29+ 7.018 7.013 7.015 7.016 7.019 7.022
99-30 7.013 7.010 7.011 7.012 7.014 7.017
99-30+ 7.009 7.006 7.007 7.008 7.010 7.011
99-31 7.004 7.002 7.003 7.003 7.005 7.006
99-31+ 6.999 6.999 6.999 6.999 7.000 7.000
100-00 6.995 6.995 6.995 6.995 6.995 6.995
100-00+ 6.990 6.991 6.991 6.991 6.990 6.989
100-01 6.986 6.987 6.987 6.986 6.985 6.984
100-01+ 6.981 6.984 6.983 6.982 6.980 6.978
100-02 6.977 6.980 6.979 6.978 6.975 6.973
100-02+ 6.972 6.976 6.975 6.973 6.970 6.968
100-03 6.968 6.973 6.971 6.969 6.966 6.962
100-03+ 6.963 6.969 6.966 6.965 6.961 6.957
100-04 6.958 6.965 6.962 6.960 6.956 6.951
100-04+ 6.954 6.961 6.958 6.956 6.951 6.946
100-05 6.949 6.958 6.954 6.952 6.946 6.940
100-05+ 6.945 6.954 6.950 6.948 6.941 6.935
100-06 6.940 6.950 6.946 6.943 6.936 6.929
100-06+ 6.936 6.946 6.942 6.939 6.932 6.924
100-07 6.931 6.943 6.938 6.935 6.927 6.918
100-07+ 6.927 6.939 6.934 6.930 6.922 6.913
First Payment 3.569 4.736 4.153 3.819 3.319 2.903
Average Life 4.056 5.139 4.643 4.330 3.752 3.299
Last Payment 4.819 5.569 5.403 5.153 4.403 3.736
Mod.Dur. @ 100-00 3.427 4.194 3.849 3.626 3.202 2.859
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
20
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Collateral Information
The collateral information presented herein is based on the collateral pool as
of September 30, 1999. Additional collateral will be accumulated before the
Closing Date to reach the Initial Collateral Balance. The characteristics of
such additional collateral are not expected to be materially different from the
collateral information presented herein.
Note: Percentages may not add to 100% due to rounding.
GROSS COUPON
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Gross Auto Auto Principal Principal
Coupon Loans Loans Balance Balance
<S> <C> <C> <C> <C>
8.000% < Gross Coupon <= 8.500% 2 .01 $21,746.64 .01
8.500% < Gross Coupon <= 9.000% 15 .10 $191,867.09 .08
9.000% < Gross Coupon <= 9.500% 8 .05 $135,186.09 .06
9.500% < Gross Coupon <= 10.000% 191 1.28 $2,974,745.90 1.29
10.000% < Gross Coupon <= 10.500% 159 1.07 $2,480,485.36 1.07
10.500% < Gross Coupon <= 11.000% 238 1.60 $3,860,997.35 1.67
11.000% < Gross Coupon <= 11.500% 378 2.54 $6,651,391.77 2.87
11.500% < Gross Coupon <= 12.000% 557 3.74 $9,692,829.92 4.19
12.000% < Gross Coupon <= 12.500% 601 4.03 $10,772,730.47 4.65
12.500% < Gross Coupon <= 13.000% 982 6.59 $15,563,673.54 6.72
13.000% < Gross Coupon <= 13.500% 1,386 9.30 $21,842,493.33 9.44
13.500% < Gross Coupon <= 14.000% 1,086 7.29 $18,168,744.61 7.85
14.000% < Gross Coupon <= 14.500% 1,070 7.18 $18,398,842.55 7.95
14.500% < Gross Coupon <= 15.000% 1,074 7.21 $16,538,989.46 7.14
15.000% < Gross Coupon <= 15.500% 796 5.34 $12,818,339.40 5.54
15.500% < Gross Coupon <= 16.000% 1,251 8.39 $19,502,249.73 8.42
16.000% < Gross Coupon <= 16.500% 1,203 8.07 $17,093,602.53 7.38
16.500% < Gross Coupon <= 17.000% 1,040 6.98 $15,003,241.41 6.48
17.000% < Gross Coupon <= 17.500% 667 4.48 $10,486,057.97 4.53
17.500% < Gross Coupon <= 18.000% 1,688 11.33 $23,095,458.79 9.98
18.000% < Gross Coupon <= 18.500% 119 .80 $1,727,032.00 .75
18.500% < Gross Coupon <= 19.000% 131 .88 $1,567,610.54 .68
19.000% < Gross Coupon <= 19.500% 50 .34 $613,376.95 .26
19.500% < Gross Coupon <= 20.000% 111 .74 $1,302,921.84 .56
20.000% < Gross Coupon <= 20.500% 19 .13 $227,187.29 .10
20.500% < Gross Coupon <= 21.000% 30 .20 $298,473.56 .13
21.000% < Gross Coupon <= 21.500% 7 .05 $64,523.37 .03
21.500% < Gross Coupon <= 22.000% 22 .15 $178,078.83 .08
22.000% < Gross Coupon <= 22.500% 14 .09 $148,710.09 .06
22.500% < Gross Coupon <= 23.000% 4 .03 $36,520.63 .02
23.000% < Gross Coupon <= 23.500% 1 .01 $6,563.14 .00
23.500% < Gross Coupon <= 24.000% 2 .01 $12,448.50 .01
24.000% < Gross Coupon <= 24.500% 1 .01 $6,646.85 .00
- -----------------------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
=========================================================================================
</TABLE>
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
21
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
GEOGRAPHIC DISTRIBUTION
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Auto Auto Principal Principal
State Loans Loans Balance Balance
AA (*) 1 .01 $12,589.31 .01
AE (*) 1 .01 $29,449.76 .01
AK 1 .01 $15,079.85 .01
AL 7 .05 $122,411.75 .05
AR 29 .19 $501,504.40 .22
AZ 551 3.70 $9,563,371.13 4.13
CA 904 6.07 $16,419,632.95 7.09
CO 72 .48 $1,154,685.33 .50
CT 6 .04 $80,240.61 .03
DC 93 .62 $1,479,067.35 .64
DE 229 1.54 $3,494,739.73 1.51
FL 1,001 6.72 $13,931,336.61 6.02
GA 1,019 6.84 $17,479,583.39 7.55
IA 2 .01 $38,145.43 .02
ID 1 .01 $20,634.87 .01
IL 7 .05 $100,904.54 .04
IN 6 .04 $85,311.92 .04
KS 70 .47 $1,018,508.82 .44
KY 3 .02 $35,255.49 .02
LA 51 .34 $883,515.74 .38
MA 2 .01 $26,986.43 .01
MD 1,779 11.94 $26,847,208.62 11.60
MI 25 .17 $324,771.11 .14
MN 1 .01 $13,338.45 .01
MO 70 .47 $1,285,361.61 .56
MS 2 .01 $39,891.93 .02
MT 1 .01 $20,063.94 .01
NC 2,993 20.08 $47,537,521.76 20.54
ND 2 .01 $42,078.69 .02
NE 1 .01 $11,533.24 .00
NJ 425 2.85 $6,194,244.36 2.68
NM 4 .03 $73,446.42 .03
NV 6 .04 $98,838.03 .04
NY 498 3.34 $7,085,919.09 3.06
OH 8 .05 $110,540.36 .05
OK 964 6.47 $15,701,284.87 6.78
OR 3 .02 $38,284.55 .02
PA 617 4.14 $9,048,242.61 3.91
PR 1 .01 $13,556.69 .01
RI 1 .01 $12,566.23 .01
SC 640 4.29 $9,619,510.70 4.16
SD 1 .01 $18,509.87 .01
TN 36 .24 $632,214.43 .27
TX 2,157 14.47 $31,426,083.39 13.58
VA 580 3.89 $8,302,130.41 3.59
WA 6 .04 $101,316.28 .04
WI 2 .01 $30,428.73 .01
WV 21 .14 $316,146.07 .14
WY 3 .02 $45,779.65 .02
- -------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
=========================================================================
(*) Military address
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
22
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
REMAINING TERM TO SCHEDULED MATURITY DATE
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Remaining Term to Auto Auto Principal Principal
Scheduled Maturity Date Loans Loans Balance Balance
<S> <C> <C> <C> <C>
0 < Rem Term <= 12 3 .02 $7,753.89 .00
12 < Rem Term <= 24 51 .34 $253,684.18 .11
24 < Rem Term <= 36 336 2.25 $2,457,412.59 1.06
36 < Rem Term <= 48 1,430 9.60 $14,767,298.40 6.38
48 < Rem Term <= 60 6,229 41.80 $84,483,036.71 36.50
60 < Rem Term <= 72 6,854 45.99 $129,514,581.73 55.95
- -----------------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
===================================================================================
</TABLE>
ORIGINATION DATE
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Auto Auto Principal Principal
Origination Date Loans Loans Balance Balance
<S> <C> <C> <C> <C>
July 1997 1 .01 $11,308.31 .00
September 1997 2 .01 $26,621.24 .01
October 1997 1 .01 $586.44 .00
November 1997 8 .05 $59,124.45 .03
December 1997 53 .36 $549,647.27 .24
January 1998 17 .11 $158,516.02 .07
February 1998 21 .14 $211,850.46 .09
March 1998 33 .22 $325,143.07 .14
April 1998 38 .25 $408,933.14 .18
May 1998 28 .19 $291,159.37 .13
June 1998 23 .15 $280,431.14 .12
July 1998 33 .22 $386,912.66 .17
August 1998 30 .20 $407,060.34 .18
September 1998 37 .25 $458,460.46 .20
October 1998 44 .30 $559,644.83 .24
November 1998 39 .26 $478,691.18 .21
December 1998 99 .66 $1,326,406.70 .57
January 1999 326 2.19 $5,099,280.58 2.20
February 1999 856 5.74 $12,467,188.65 5.39
March 1999 952 6.39 $14,916,980.18 6.44
April 1999 2,466 16.55 $36,981,009.15 15.98
May 1999 2,552 17.12 $39,426,351.86 17.03
June 1999 2,673 17.94 $42,428,842.67 18.33
July 1999 2,325 15.60 $37,708,508.00 16.29
August 1999 1,861 12.49 $30,123,506.79 13.01
September 1999 385 2.58 $6,391,602.54 2.76
- -----------------------------------------------------------------------------------------
Total..... 14,903 100.00% $231,483,767.50 100.00%
=========================================================================================
</TABLE>
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
23
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
ORIGINAL TERM TO SCHEDULED MATURITY DATE
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Original Term to Auto Auto Principal Principal
Scheduled Maturity Date Loans Loans Balance Balance
<S> <C> <C> <C> <C>
12 < Original Maturity <= 24 28 .19 $142,682.95 .06
24 < Original Maturity <= 36 249 1.67 $1,684,544.46 .73
36 < Original Maturity <= 48 1,084 7.27 $10,401,445.27 4.49
48 < Original Maturity <= 60 6,346 42.58 $84,335,432.12 36.43
60 < Original Maturity <= 72 7,196 48.29 $134,919,662.70 58.28
- -----------------------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
=========================================================================================
</TABLE>
MODEL YEAR OF VEHICLE
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Auto Auto Principal Principal
Year Loans Loans Balance Balance
<S> <C> <C> <C> <C>
1990 6 .04 $33,243.30 .01
1991 47 .32 $325,669.54 .14
1992 186 1.25 $1,418,905.41 .61
1993 429 2.88 $3,878,812.24 1.68
1994 713 4.78 $7,393,919.35 3.19
1995 1,568 10.52 $18,521,528.42 8.00
1996 2,594 17.41 $35,997,858.90 15.55
1997 2,744 18.41 $41,994,504.96 18.14
1998 2,521 16.92 $41,578,419.99 17.96
1999 3,881 26.04 $75,711,239.66 32.71
2000 214 1.44 $4,629,665.73 2.00
- --------------------------------------------------------------------
Total.... 14,903 14,903 $231,483,767.50 100.00%
====================================================================
</TABLE>
CURRENT LOAN AMOUNT
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Current Auto Auto Principal Principal
Loan Amount Loans Loans Balance Balance
<S> <C> <C> <C> <C>
0.01 - 5,000.00 144 .97 $501,582.43 .22
5,000.01 - 10,000.00 2,045 13.72 $16,900,465.50 7.30
10,000.01 - 15,000.00 5,188 34.81 $65,227,765.53 28.18
15,000.01 - 20,000.00 4,474 30.02 $77,490,720.57 33.48
20,000.01 - 25,000.00 2,293 15.39 $50,500,829.14 21.82
25,000.01 - 30,000.00 665 4.46 $17,877,913.42 7.72
30,000.01 - 35,000.00 90 .60 $2,839,463.55 1.23
35,000.01 - 40,000.00 4 .03 $145,027.36 .06
- ------------------------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
==========================================================================================
</TABLE>
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
24
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
ORIGINAL LOAN AMOUNT
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Original Auto Auto Principal Principal
Loan Amount Loans Loans Balance Balance
<S> <C> <C> <C> <C>
0.01 - 5,000.00 42 .28 $158,923.14 .07
5,000.01 - 10,000.00 1,702 11.42 $13,230,184.77 5.72
10,000.01 - 15,000.00 5,004 33.58 $60,334,300.97 26.06
15,000.01 - 20,000.00 4,620 31.00 $77,119,918.54 33.32
20,000.01 - 25,000.00 2,581 17.32 $55,061,118.63 23.79
25,000.01 - 30,000.00 806 5.41 $21,017,993.20 9.08
30,000.01 - 35,000.00 138 .93 $4,211,745.75 1.82
35,000.01 - 40,000.00 10 .07 $349,582.50 .15
- ------------------------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
==========================================================================================
</TABLE>
NEW/USED VEHICLE
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Auto Auto Principal Principal
New/Used Loans Loans Balance Balance
New 3,918 26.29 $76,800,782.86 33.18
Used 10,985 73.71 $154,682,984.64 66.82
- -------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
=========================================================================
BORROWER FICO RANGE
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Auto Auto Principal Principal
FICO Range Loans Loans Balance Balance
400 < FICO <= 425 1 .01 $15,232.37 .01
425 < FICO <= 450 1 .01 $12,118.56 .01
450 < FICO <= 475 9 .06 $99,000.36 .04
475 < FICO <= 500 34 .23 $403,854.22 .17
500 < FICO <= 525 129 .87 $1,477,283.21 .64
525 < FICO <= 550 522 3.50 $5,975,359.44 2.58
550 < FICO <= 575 810 5.44 $9,899,775.47 4.28
575 < FICO <= 600 2,212 14.84 $32,685,125.01 14.12
600 < FICO <= 625 3,141 21.08 $48,888,503.52 21.12
625 < FICO <= 650 3,356 22.52 $55,150,701.84 23.82
650 < FICO <= 675 2,372 15.92 $39,412,811.58 17.03
675 < FICO <= 700 1,082 7.26 $17,818,637.37 7.70
700 < FICO <= 725 603 4.05 $10,101,039.43 4.36
725 < FICO <= 750 328 2.20 $5,230,352.41 2.26
750 < FICO <= 800 271 1.82 $3,899,132.79 1.68
800 < FICO <= 850 31 .21 $400,703.88 .17
850 < FICO 1 .01 $14,136.04 .01
- --------------------------------------------------------------------------------
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
25
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Total.... 14,903 100.00% $231,483,767.50 100.00%
================================================================================
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOU PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
26
ADDITIONAL MATERIALS
The following assumptions were used to model the deal (no losses):
(A) Collateral: (i) repline 1: $3,174,410.50, WAC 16.338%, OrigTerm 39 mo,
RemTerm 31 mo.; (ii) repline 2: $17,241,648.40, WAC 15.779%, OrigTerm 50 mo,
RemTerm 44 mo.; (iii) repline 3: $98,638,679.56, WAC 15.096%, OrigTerm 60 mo,
RemTerm 56 mo.; (iv) repline 4: $151,215,531.81, WAC 14.508%, OrigTerm 71 mo,
RemTerm 67 mo.; (v) 200 bps servicing and (vi) prepay at 1.5% ABS.
(B) Bonds: (i) pay sequentially; (ii) A1 class $117,000,000, 6.305% coupon;
(iii) A2 $60,000,000, 6.565% coupon; (iv) A3 $43,000,000, 6.74% coupon; (v) A4
$30,000,000, 6.985% coupon; (vi) interest is 30/360; (vii) Settles 11/23/99
flat; (viii) No interest delay; (ix) First payment 12/18/99; (x) Surety fee of
30 bps on bond balance; (xi) Trustee fee $291.67 per month; (xii) callable when
total bond balance hits 10% of original bond balance; (xiii) Reserve account at
3% of initial collateral balance (not growing, releasing at 5% of current bal);
(xiv) Floor is the greater of (1) 1% of initial bal and (2) an amount such that
the reserve balance plus the OC amount is greater than 2% of initial collat
bal.; (xv) 2.5% reinvestment on reserve account; and (xvi) OC initially 7.5%,
building to 11% of current and remaining constant at 11%.
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
$[117,000,000][TBD]% Class A-1 Notes, Series 1999-2
$[60,000,000] [TBD]% Class A-2 Notes, Series 1999-2
$[43,000,000] [TBD]% Class A-3 Notes, Series 1999-2
$[30,000,000] [TBD]% Class A-4 Notes, Series 1999-2
The information contained herein (the "Computational Materials") is provided by
Prudential Securities Incorporated ("PSI") based on information regarding the
collateral pool provided by Flagship Credit Corporation. No representation is
made by PSI as to the appropriateness, usefulness, accuracy or completeness of
these materials or the assumptions on which they are based. These Computational
Materials are preliminary and will be superseded by any subsequent computational
materials and the prospectus.
All information and assumptions contained herein reflect PSI's assumptions as of
this date and are subject to change. The actual characteristics and performance
of the collateral will differ from the assumptions used in preparing these
materials, which are hypothetical in nature. Changes in the assumptions may have
a material impact on the information set forth in these materials.
This information may not be used or otherwise disseminated in connection with
the offer or sale of these or any other securities, except in connection with
the initial offer or sale of these securities to you to the extent set forth
below. These materials do not constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. Any such offer, or solicitation
of an offer, to buy or sell any security would be made pursuant to a prospectus
which will contain material information not contained in these materials. Such
prospectus will contain all material information in respect of any such security
offered thereby and any decision to invest in such securities should be made
solely in reliance upon such prospectus. Any capitalized terms used but not
defined herein are to be read in conjunction with such prospectus. 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.
PSI (or any of its affiliates) or their officers, directors, analysts or
employees may have positions in the securities, commodities or derivative
instruments thereon referred to here 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 buy or a solicitation of an offer to sell or buy securities,
commodities or derivative instruments mentioned herein. No sale of any
securities, commodities or derivative instruments will be confined without the
purchaser having received the prospectus with such confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
1
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
PRICING INFORMATION
-------------------
<TABLE>
<CAPTION>
Class A-1 Class A-2 Class A-3 Class A-4
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Approximate
Face Amount: $[117,000,000] $[60,000,000] $[43,000,000] $[30,000,000]
Expected Ratings
(S&P/Moody's/Duff): [AAA/Aaa/AAA] [AAA/Aaa/AAA] [AAA/Aaa/AAA] [AAA/Aaa/AAA]
Coupon: [TBD] [TBD] [TBD] [TBD]
Approximate
Price: [TBD] [TBD] [TBD] [TBD]
Yield: [TBD] [TBD] [TBD] [TBD]
Spread: [TBD] bps [TBD] bps [TBD] bps [TBD] bps
Exp. Avg Life
to Call: [0.7] yrs [2.0] yrs [3.0] yrs [3.6] yrs
Exp. Avg Life
to Maturity: [0.7] yrs [2.0] yrs [3.0] yrs [4.1] yrs
Expected 1st
Principal Pmt Date: [12/20/1999] [5/18/2001] [6/18/2002] [6/18/2003]
Exp. Maturity to Call: [5/18/2001] [6/18/2002] [6/18/2003]
[7/18/2003]
Exp. Maturity: [5/18/2001] [6/18/2002] [6/18/2003] [9/18/2004]
Stated Maturity: [11/18/2002] [1/18/2004] [11/18/2004] [5/18/2006]
Pricing Speed: 1.5% ABS 1.5% ABS 1.5% ABS 1.5% ABS
Pricing Date: [TBD] [TBD] [TBD] [TBD]
Expected
Settle Date: [November 23, 1999] [November 23, 1999] [November 23, 1999] [November 23, 1999]
Cut-Off Date
(Close of Business): [October 31, 1999] [October 31, 1999] [October 31, 1999] [October 31, 1999]
Dated Date: [November 23, 1999] [November 23, 1999] [November 23, 1999] [November 23, 1999]
Pmt Delay: [0] days [0] days [0] days [0] days
Interest Pmt: [30/360] [30/360] [30/360] [30/360]
Pmt Terms: Monthly Monthly Monthly Monthly
1st Interest
Payment Date: 12/20/99 12/20/99 12/20/99 12/20/99
Distribution: Public Public Public Public
Offering Offering Offering Offering
Settlement: Book Entry Book Entry Book Entry Book Entry
(DTC) (DTC) (DTC) (DTC)
ERISA Eligibility: Yes Yes Yes Yes
</TABLE>
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
2
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Company Overview
Flagship Credit Corporation ("Flagship")
Flagship Credit Corporation ("Flagship") is an auto finance company
focusing on the non-prime sector of the market. As of June 30, 1999,
Flagship had total assets of approximately $684 million, stockholders
equity of approximately $63.9 million and net income of approximately $790
thousand (pro forma unaudited) for the six months then ended.
Flagship is an indirect wholly owned subsidiary of Copelco Financial
Services Group, Inc. ("Copelco"). As of June 30, 1999, Copelco had total
assets of approximately $4,891 million, stockholders equity of
approximately $334 million and net income of approximately $16 million
(unaudited) for the six months then ended.
Flagship was formed in June 1999 as a result of a merger to combine
Copelco's two auto finance subsidiaries, Franklin Acceptance Corporation
and ProCredit, Inc., under a single corporate umbrella. Flagship (including
its predecessor companies) has been in the auto finance business since
1957. On a cumulative basis, Flagship and its predecessors have originated
approximately $2 billion in auto loans.
In July 1997 (in the case of ProCredit) and early 1998 (in the case of
Franklin), Flagship's predecessors took various actions designed to improve
the credit quality of the loans originated by the respective companies. As
a result of these efforts, the average credit bureau FICO score of the
obligors for which Flagship or its predecessors have originated loans has
risen from an average of 593 for originations during January 1998 to the
current level of 644 for originations during September 1999.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
3
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Historical Delinquency Information. Delinquency information for Flagship Credit
Corporation is set forth below.
<TABLE>
<CAPTION>
At December 30, 1998 At March 31, 1999 At June 30, 1999 At September 30, 1999
-------------------- ----------------- ---------------- ---------------------
Dollars Percent Dollars Percent Dollars Percent Dollars Percent
------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Principal Outstanding $205,874,100.08 100.00% $283,525,482.35 100.00% $403,378,727.76 100.00% $494,833,712.90 100.00%
31-59 Days 3,167,028.59 1.54% 4,132,767.43 1.46% 8,997,069.21 2.23% 13,244,779.13 2.68%
60-89 Days 894,287.11 0.43% 960,713.14 0.34% 1,626,818.51 0.40% 3,421,821.17 0.69%
90 Days and Over 599,529.10 0.29% 716,633.81 0.25% 707,008.54 0.18% 1,781,878.46 0.36%
---------- ----- ---------- ----- ---------- ----- ------------ -----
Total Delinquencies $4,660,844.80 2.26% $5,810,114.38 2.05% $11,330,896.26 2.81% $18,448,478.76 3.73%
</TABLE>
The chart set forth above reflects the portfolio of loans that were originated
after Flagship (or its predecessors) repositioned itself from a "sub-prime"
lender to a "non-prime" lender. The dollar amount of delinquencies does not
include vehicles in repossession that have been charged-off.
Historical Credit Loss Experience. Credit Loss information for loans that are
owned and serviced by Flagship Credit Corporation is set forth below.
<TABLE>
<CAPTION>
Fiscal Year Ended Three Month Periods Ended
----------------------- -----------------------------------------------------------
December 31, 1998 March 31, 1999 June 30, 1999 September 30, 1999
----------------- -------------- ------------- ------------------
<S> <C> <C> <C> <C> <C>
Average Principal Balance (1) $105,371,033 $252,463,079 $363,594,884 $466,346,168
Gross Charge-Offs (2) 2,207,395 1,499,984 1,495,829 2,880,746
Recoveries (3) 133,929 236,154 169,674 162,094
------- ------- ------- -------
Net Charge-Offs 2,073,466 1,263,830 1,326,155 2,718,652
Net Charge-Offs as Percent of 1.97% 2.00% 1.46% 2.33%
Average Principal Balance (4)
</TABLE>
The chart set forth above reflects the portfolio of loans that were originated
after Flagship (or its predecessors) repositioned itself from a "sub-prime"
lender to a "non-prime" lender.
(1) Average Principal Balance represents the average of the month-end balances
during the period.
(2) Gross Charge-Offs represent the outstanding principal balance at the time
of charge off less the estimated net sales proceeds from the sale of the
related vehicles.
(3) Recoveries represent the difference between estimated sales proceeds and
actual proceeds of the related vehicles.
(4) Net Charge-Offs as a Percent of Average Principal Balance is annualized
based on four three-month quarters.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
4
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Title of Securities: Flagship Auto Receivables Owner Trust 1999-2,
Asset-Backed Notes, Series 1999-2,
Class A-1 Notes, Class A-2 Notes, Class A-3
Notes and Class A-4 Notes (collectively, the
"Notes").
Securities Offered: $[117,000,000], [TBD]% Class A-1 Notes;
$[60,000,000], [TBD]% Class A-2 Notes;
$[43,000,000], [TBD]% Class A-3 Notes;
$[30,000,000], [TBD]% Class A-4 Notes.
Distribution and Form: The Notes are being publicly offered. The Notes
will be available in Book Entry Form through
DTC, Euroclear or CEDEL.
Minimum Denomination: $1,000 and increments of $1,000.
Structure: The Notes will be time-tranched and insured by
MBIA.
Collateral: The Transaction is collateralized by, among
other things, a pool of consumer automobile
installment sales contracts (the "Auto Loans"),
including the principal and interest payments
received thereon after the Cut-off Date, and
rights in and to the Collection Account and any
other bank accounts opened by the Issuer (each,
an "Account"). Approximately $[270,270,270.27]
of collateral, as of the Cut-off Date, will be
deposited at closing and support the Notes (the
"Initial Collateral Balance").
Issuer: Flagship Auto Receivables Owner Trust 1999-2
Seller: Flagship Auto Loan Funding LLC 1999-2, a
bankruptcy-remote, special purpose, limited
liability company wholly-owned by Flagship
Credit Corporation.
Originator/Servicer: Flagship Credit Corporation ("Flagship")
Servicing Fee: 200 bps
Bond Insurer: MBIA Insurance Corporation ("MBIA" or the
"Insurer")
Sole Manager: Prudential Securities
Indenture Trustee: Harris Trust and Savings Bank (the "Trustee")
Owner Trustee: First Union National Bank
Cut-Off Date: Close of Business on October 31, 1999
Expected Pricing: [TBD]
Expected Closing Date: [November 23, 1999]
Determination Date: The 5th Business Day immediately preceding such
Payment Date.
Payment Date: The 18th day of each month (or if any such date
is not a business day, on the first business day
thereafter), commencing on [December 20, 1999].
Expected Ratings: The Notes will be rated AAA, Aaa and AAA by
Standard and Poor's, Moody's and Duff & Phelps,
respectively.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
5
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Flow of Funds: On each Payment Date, provided that an Event of
Default is not in effect, distributions will be
made by the Trustee according to the following
priority from Available Funds and amounts
withdrawn from the Spread Account and any other
Accounts as specified by the indenture:
(i) To the Trustee and Collateral Agent, the
Trustee and Collateral Agent Fee and other
amounts due to the Trustee and Collateral
Agent (other than fees) subject to a
maximum expense cap;
(ii) To the Servicer, the Servicing Fee;
(iii) To the Noteholders, the Interest Payment
Amount on a pro-rata basis;
(iv) To the Insurer, the Insurer Premium;
(v) To the Noteholders, the Noteholders'
Principal Payment Amount paid to Class
A-1, Class A-2, Class A-3 and Class A-4 on
a sequential basis;
(vi) To any successor servicer, the Trustee and
MBIA, any reasonable and nonrecurring fees
and expenses related to the transfer of
servicing and the appointment of a
successor servicer subject to a maximum
expense cap;
(vii) To the Insurer, any Reimbursement Amounts;
(viii) To the Spread Account, the amount
necessary to maintain the Requisite Spread
Account Amount;
(ix) To the Noteholders, the Additional
Noteholders' Principal Payment Amount;
(x) Re-liening Expenses;
(xi) To the Trustee, Collateral Agent, any
successor servicer, and MBIA, any items
not paid under clause (i) or (iv) above;
(xii) To the Seller, the remaining amount, if
any, of Available Funds.
In addition, any funds in the Spread Account in
excess of the required amount will be paid to
the Notes, sequentially, to further reduce the
principal balance of the Notes to the Notes
Target Amount.
Available Funds: For any Payment Date, the following amounts
related to the preceding Collection Period will
be available for distribution:
(i) All principal and interest payments on the
Auto Loans;
(ii) Recoveries or other amounts related to
Charged-off Auto Loans;
(iii) Investment earnings on funds deposited in
the Accounts;
(iv) The amount paid for each Auto Loan that
was repurchased by the Originator or the
Servicer.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
6
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Interest Payment Amount: The Notes will bear interest at a fixed rate per
annum, calculated on a 30/360 basis, and with
respect to the first Payment Date, shall accrue
from and including the Closing Date to but
excluding, such Payment Date.
Principal Payments: Principal of the notes will be payable on each
Payment Date in an amount equal to the sum of
(i) the Noteholders' Principal Payment Amount,
(ii) the Additional Noteholders' Principal
Payment Amount and (iii) the Released Funds
Principal Payment Amount.
Noteholders' Principal
Payment Amount: With respect to any Payment Date, the lesser of
(a) one hundred percent (100%) of the Principal
Payment Amount for such Payment Date or (b) an
amount necessary to reduce the aggregate
principal amount of the notes to the Notes
Target Amount for such Payment Date.
Notwithstanding the foregoing, all outstanding
principal and interest with respect to a class
of notes will be payable in full on the Final
Scheduled Maturity Date for such class of notes.
Notes Target Amount: With respect to any Payment Date, the product of
the Notes Target Percentage and the outstanding
Collateral Balance.
Notes Target Percentage: (i) 89% if the Level I Portfolio Performance
Indicator is not triggered or (ii) 82% if the
Level I Portfolio Performance Indicator is
triggered and has not been cured; provided that
if an Insurance Agreement Indicator is
triggered, the Notes Target Percentage shall
equal 0%.
Principal Payment Amount: With respect to any Payment Date, the sum of (i)
collections on Auto Loans (other than
Charged-off Auto Loans) allocable to principal
including full and partial prepayments; (ii) the
principal amount paid to repurchase an Auto
Loan; and (iii) the principal balance of each
Auto Loan that first became a Charged-off Auto
Loan during the preceding Collection Period
provided that any Charged-off Auto Loan replaced
by a Substitute Auto Loan shall not be counted
in this clause (iii); and (iv) the aggregate
amount of Cram Down Losses with respect to the
Auto Loans that have occurred during the
preceding Collection Period.
Additional Noteholders'
Principal Payment Amount: With respect to any Payment Date, the lesser of
(i) the amount necessary to reduce the
outstanding principal amount of the Notes to the
Notes Target Amount (after payment of (i)
through (v) in "Flow of Funds") and (ii) the
amount of Available Funds remaining after
payment of (i) through (viii) in "Flow of Funds"
for such Payment Date.
Released Funds Principal
Payment Amount: For any Payment Date, the lesser of (a) the
amount by which the funds in the Spread Account
(after giving effect to all payments and
withdrawals on that payment date) exceed the
Requisite Spread Account Amount and (b) the
amount necessary (after giving effect to the
Noteholders' Principal Payment Amount and the
Additional Noteholders' Principal Payment Amount
on that date) to reduce the aggregate principal
amount of the notes to the Notes Target Amount.
Charged-off Auto Loan: With respect to any Collection Period, an Auto
Loan (i) that has been charged-off in accordance
with the Servicer's credit and collection
policies, (ii) for which 90% or more of any
scheduled payment on such Auto Loan is 123 days
or more delinquent as of the end of such
Collection Period, (iii) for which the related
vehicle has been repossessed and sold or (iv)
that is deemed uncollectible by the Servicer.
Cram Down Losses: If, during an insolvency proceeding, a court
issued an order which reduces the amount owed on
an Auto Loan, a Cram Down Loss is the amount
equal to such reduction in principal balance.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
7
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Level I Portfolio
Performance Indicator: Means the violation of a Level I Delinquency
Test, Net Loss Test or Cumulative Net Loss Test.
Insurance Agreement
Indicator: Means the violation of the Level II Delinquency
Test, Net Loss Test or Cumulative Net Loss Test
or the occurrence of other events specified in
the Insurance Agreement.
Level I Delinquency Test: Means the 4-month average Delinquency Ratio is
less than 6.65%.
Level I Net Loss Test: Means the 4-month average Net Loss Rate is less
than 8.0%.
Level I Cumulative Net
Loss Test: Means the Cumulative Net Loss Rate is less than
the following:
Cumulative Net
Collection Period Loss Rate
----------------- ---------
6-8 1.35%
9-11 1.70%
12-14 3.05%
15-17 4.40%
18-20 5.60%
21-23 6.60%
24-26 7.50%
27-29 8.30%
30-32 8.90%
33- 9.30%
Level II Delinquency
Test: Means the 4-month average Delinquency Ratio is
less than or equal to 8.08%.
Level II Net Loss Test: Means the 4-month average Net Loss Rate is less
than or equal to 10.0%.
Level II Cumulative Net
Loss Test: Means the Cumulative Net Loss Rate is less than
or equal to the following:
Cumulative Net
Collection Period Loss Rate
----------------- ---------
6-8 1.75%
9-11 2.40%
12-14 3.70%
15-17 5.35%
18-20 6.85%
21-23 8.05%
24-26 9.15%
27-29 10.05%
30-32 10.75%
33- 11.30%
Delinquency Ratio: With respect to any Determination Date, means
the outstanding principal balance of loans > 31
days or more contractually delinquent as of the
end of the preceding Collection Period (other
than Charged-off Auto Loans and, from and after
the 25th Collection Period, Auto Loans for which
the related Obligor has paid during the
preceding six Collection Periods in the
aggregate amount not less than the sum of six
monthly payments) divided by the outstanding
portfolio balance on the last day of the
preceding Collection Period.
Net Loss Rate: With respect to any Determination Date twelve
times net losses related to the preceding
Collection Period divided by the outstanding
portfolio balance on the last day of the
preceding Collection Period.
Cumulative Net Loss Rate: With respect to any Determination Date, means
the quotient of the aggregate amount of net
losses with respect to the Auto Loans in the
collateral pool since the closing date, divided
by the Initial Collateral Balance.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
8
<PAGE>
Preliminary Marketing and Computational Materials
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Credit Enhancement: Subordination, Spread Account, Note Insurance
Policy
Subordination: The Issuer's first-loss piece is subordinate to
the Notes. Initially, the Issuer's first-loss
piece shall equal 7.5% of the Initial Collateral
Balance.
Spread Account: If, on any Payment Date, the Available Funds are
insufficient to pay interest and principal due
on the Notes for any Payment Date (and any other
item included in "Flow of Funds," (i) through
(vi)), amounts on deposit in the Spread Account
will be available to make up any such shortfall.
The Spread Account will be funded at Closing in
an amount equal to 3% of the Initial Collateral
Balance. The Requisite Spread Account Amount
will be the greater of (1) the lesser of (a) 3%
of the Initial Collateral Balance and (b) 5% of
the outstanding Collateral Balance and (2) the
Floor Amount (the "Requisite Spread Account
Amount"). The Spread Account will receive
additional funds in accordance with the "Flow of
Funds" if needed to maintain the Requisite
Spread Account Amount. Amounts on deposit in the
Spread Account which are in excess of the
Requisite Spread Account Amount will be paid to
the Notes, sequentially, to further reduce the
principal balance of the Notes to the Notes
Target Amount and then will be released to the
Seller.
The "Floor Amount" is equal to the greater of
(i) 1% of the Initial Collateral Balance and
(ii) the amount such that the sum of (a) the
amount on deposit in the Spread Account and (b)
the Overcollateralization Amount is greater than
2% of the Initial Collateral Balance.
The "Overcollateralization Amount" is the
difference between the outstanding Collateral
Balance as of the end of the preceding
Collection Period and the outstanding principal
balance of the Notes.
Note Insurance Policy: MBIA will insure the payment of timely interest
and ultimate principal of the Notes.
Substitutions: Flagship will have the option to substitute Auto
Loans for Charged-Off Auto Loans provided that
Substitute Auto Loans must in the aggregate (i)
be at least equal in outstanding principal
balance and at least equal in terms of credit
quality to the Auto Loans being replaced; (ii)
not have final scheduled maturity dates later
than the final scheduled maturity dates of the
Auto Loans being replaced; (iii) be eligible
Auto Loans (as specified in the transaction
documents); (iv) satisfy all of the
representations and warranties contained in the
Sales and Servicing Agreement; (v) never have
been more than thirty-one (31) days delinquent,
and (vi) have APR's at least equal to or greater
than the APR's of the Auto Loans being replaced.
Substitutions for Charged-off Auto Loans shall
not exceed 10% of the Initial Collateral
Balance. All Charged-off Auto Loans will be used
in calculating performance triggers even when
removed from the pool.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
9
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Optional Redemption
(Full Redemption): The Notes may be redeemed by the issuer, in
whole but not in part, at par plus accrued
interest on any Payment Date on which the
outstanding principal amount of the Notes is
less than or equal to 10% of the initial
principal balance of the Notes.
Tax Status: The Notes will be characterized as debt for
federal income tax purposes. Please see the
Prospectus for a full description of the tax
characterization of the Notes.
ERISA Eligible: Subject to the restrictions and considerations
discussed under "ERISA Considerations," the
notes will be eligible for purchase by employee
benefit plans. An investor that is, or is acting
on behalf of, an employee benefit plan subject
to ERISA or Section 4975 of the Code will be
deemed to represent and warrant that its
investment in the notes, as applicable, will not
result in a non-exempt prohibited transaction
under ERISA or Section 4975 of the Code.
Further Banking: Robert Schwartz (212-778-4638),
Information: Shelby Carvalho (212-778-4127),
Caroline Owen (212-778-8038)
Trading: Greg Richter or Rob Karr (212-778-2741)
FSG: Lina Hsu (212-778-1451), Matt De Angelis
(212-778-2458) Wendy Liu (212-778-4876)
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
10
<PAGE>
<TABLE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
<CAPTION>
CLASS A1 CLASS A2
0.00% 1.00% 1.30% 1.50% 1.70% 2.00% 0.00% 1.00% 1.30% 1.50% 1.70% 2.00%
Payment Date
- ------------------------------------------------------------------ --------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Closing Date 100 100 100 100 100 100 100 100 100 100 100 100
November 18,2000 62 40 33 28 23 16 100 100 100 100 100 100
November 18,2001 27 0 0 0 0 0 100 84 62 47 32 9
November 18,2002 0 0 0 0 0 0 75 1 0 0 0 0
November 18,2003 0 0 0 0 0 0 0 0 0 0 0 0
November 18,2004 0 0 0 0 0 0 0 0 0 0 0 0
November 18,2005 0 0 0 0 0 0 0 0 0 0 0 0
<CAPTION>
Weighted Avg Life 1.4 0.9 0.8 0.7 0.7 0.6 3.3 2.4 2.2 2.0 1.9 1.7
CLASS A3 CLASS A4
0.00% 1.00% 1.30% 1.50% 1.70% 2.00% 0.00% 1.00% 1.30% 1.50% 1.70% 2.00%
Payment Date
- ------------------------------------------------------------------ ------------------------------------------------------
Closing Date 100 100 100 100 100 100 100 100 100 100 100 100
November 18,2000 100 100 100 100 100 100 100 100 100 100 100 100
November 18,2001 100 100 100 100 100 100 100 100 100 100 100 100
November 18,2002 100 100 89 47 24 0 100 100 100 100 100 85
November 18,2003 84 7 0 0 0 0 100 100 0 0 0 0
November 18,2004 0 0 0 0 0 0 0 0 0 0 0 0
November 18,2005 0 0 0 0 0 0 0 0 0 0 0 0
Weighted Avg Life 4.3 3.5 3.2 3.0 2.8 2.5 4.9 4.2 4.0 3.6 3.4 3.1
</TABLE>
Note: Decrement tables and weighted average lives run to call. Prepayment speeds
are ABS.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
11
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A1 AAA/Aaa CLASS
*** TO CALL ***
CURRENT BALANCE: $117,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $117,000,000.00 YIELD TABLE DATE: 11/23/99
BOND A1 BE-YIELD TABLE
PREPAYMENT SPEED
<TABLE>
<CAPTION>
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 6.767 6.590 6.700 6.739 6.795 6.839
99-24+ 6.743 6.577 6.680 6.717 6.769 6.810
99-25 6.719 6.564 6.661 6.695 6.744 6.782
99-25+ 6.696 6.552 6.641 6.673 6.719 6.754
99-26 6.672 6.539 6.622 6.651 6.693 6.726
99-26+ 6.648 6.527 6.602 6.630 6.668 6.698
99-27 6.625 6.514 6.583 6.608 6.642 6.670
99-27+ 6.601 6.501 6.564 6.586 6.617 6.641
99-28 6.578 6.489 6.544 6.564 6.592 6.613
99-28+ 6.554 6.476 6.525 6.542 6.566 6.585
99-29 6.530 6.464 6.505 6.520 6.541 6.557
99-29+ 6.507 6.451 6.486 6.498 6.515 6.529
99-30 6.483 6.439 6.466 6.476 6.490 6.501
99-30+ 6.459 6.426 6.447 6.454 6.465 6.473
99-31 6.436 6.414 6.427 6.432 6.439 6.445
99-31+ 6.412 6.401 6.408 6.411 6.414 6.417
100-00 6.389 6.389 6.389 6.389 6.389 6.389
100-00+ 6.365 6.376 6.369 6.367 6.363 6.361
100-01 6.342 6.363 6.350 6.345 6.338 6.333
100-01+ 6.318 6.351 6.330 6.323 6.313 6.305
100-02 6.294 6.338 6.311 6.301 6.287 6.277
100-02+ 6.271 6.326 6.292 6.279 6.262 6.249
100-03 6.247 6.313 6.272 6.258 6.237 6.221
100-03+ 6.224 6.301 6.253 6.236 6.212 6.193
100-04 6.200 6.288 6.234 6.214 6.186 6.165
100-04+ 6.177 6.276 6.214 6.192 6.161 6.137
100-05 6.153 6.263 6.195 6.170 6.136 6.109
100-05+ 6.130 6.251 6.176 6.149 6.111 6.081
100-06 6.106 6.238 6.156 6.127 6.085 6.053
100-06+ 6.083 6.226 6.137 6.105 6.060 6.025
100-07 6.059 6.213 6.118 6.083 6.035 5.997
100-07+ 6.036 6.201 6.098 6.062 6.010 5.969
First Payment 0.069 0.069 0.069 0.069 0.069 0.069
Average Life 0.703 1.359 0.860 0.761 0.653 0.588
Last Payment 1.486 2.736 1.819 1.653 1.403 1.236
Mod.Dur. @ 100-00 0.663 1.247 0.805 0.715 0.617 0.557
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
12
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A2 AAA/Aaa CLASS
*** TO CALL ***
CURRENT BALANCE: $60,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $60,000,000.00 YIELD TABLE DATE: 11/23/99
BOND A2 BE-YIELD TABLE
PREPAYMENT SPEED
<TABLE>
<CAPTION>
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 6.793 6.742 6.771 6.783 6.803 6.819
99-24+ 6.784 6.737 6.764 6.775 6.794 6.809
99-25 6.776 6.731 6.756 6.767 6.784 6.798
99-25+ 6.767 6.726 6.749 6.759 6.775 6.788
99-26 6.758 6.721 6.742 6.751 6.766 6.778
99-26+ 6.750 6.715 6.735 6.743 6.757 6.768
99-27 6.741 6.710 6.727 6.735 6.748 6.758
99-27+ 6.733 6.704 6.720 6.727 6.738 6.747
99-28 6.724 6.699 6.713 6.719 6.729 6.737
99-28+ 6.716 6.693 6.706 6.711 6.720 6.727
99-29 6.707 6.688 6.699 6.703 6.711 6.717
99-29+ 6.698 6.683 6.692 6.695 6.702 6.707
99-30 6.690 6.677 6.684 6.687 6.692 6.696
99-30+ 6.681 6.672 6.677 6.679 6.683 6.686
99-31 6.673 6.666 6.670 6.672 6.674 6.676
99-31+ 6.664 6.661 6.663 6.664 6.665 6.666
100-00 6.656 6.656 6.656 6.656 6.656 6.656
100-00+ 6.647 6.650 6.648 6.648 6.646 6.645
100-01 6.638 6.645 6.641 6.640 6.637 6.635
100-01+ 6.630 6.639 6.634 6.632 6.628 6.625
100-02 6.621 6.634 6.627 6.624 6.619 6.615
100-02+ 6.613 6.628 6.620 6.616 6.610 6.605
100-03 6.604 6.623 6.612 6.608 6.600 6.595
100-03+ 6.596 6.618 6.605 6.600 6.591 6.584
100-04 6.587 6.612 6.598 6.592 6.582 6.574
100-04+ 6.579 6.607 6.591 6.584 6.573 6.564
100-05 6.570 6.601 6.584 6.576 6.564 6.554
100-05+ 6.562 6.596 6.577 6.568 6.555 6.544
100-06 6.553 6.591 6.569 6.560 6.545 6.534
100-06+ 6.544 6.585 6.562 6.552 6.536 6.523
100-07 6.536 6.580 6.555 6.544 6.527 6.513
100-07+ 6.527 6.574 6.548 6.536 6.518 6.503
First Payment 1.486 2.736 1.819 1.653 1.403 1.236
Average Life 2.010 3.313 2.426 2.168 1.864 1.671
Last Payment 2.569 3.903 3.069 2.736 2.403 2.153
Mod.Dur. @ 100-00 1.825 2.887 2.174 1.958 1.701 1.534
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
13
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A3 AAA/Aaa CLASS
*** TO CALL ***
CURRENT BALANCE: $43,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $43,000,000.00 YIELD TABLE DATE: 11/23/99
BOND A3 BE-YIELD TABLE
PREPAYMENT SPEED
<TABLE>
<CAPTION>
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 6.930 6.905 6.917 6.924 6.937 6.948
99-24+ 6.924 6.900 6.912 6.919 6.931 6.941
99-25 6.918 6.896 6.907 6.913 6.924 6.934
99-25+ 6.912 6.892 6.902 6.908 6.918 6.927
99-26 6.907 6.887 6.897 6.902 6.911 6.920
99-26+ 6.901 6.883 6.892 6.897 6.905 6.913
99-27 6.895 6.879 6.887 6.891 6.899 6.906
99-27+ 6.889 6.874 6.881 6.885 6.892 6.899
99-28 6.883 6.870 6.876 6.880 6.886 6.892
99-28+ 6.877 6.866 6.871 6.874 6.880 6.885
99-29 6.871 6.861 6.866 6.869 6.873 6.878
99-29+ 6.865 6.857 6.861 6.863 6.867 6.871
99-30 6.859 6.853 6.856 6.858 6.861 6.864
99-30+ 6.853 6.848 6.851 6.852 6.854 6.857
99-31 6.847 6.844 6.846 6.847 6.848 6.849
99-31+ 6.841 6.840 6.841 6.841 6.842 6.842
100-00 6.835 6.835 6.835 6.835 6.835 6.835
100-00+ 6.830 6.831 6.830 6.830 6.829 6.828
100-01 6.824 6.827 6.825 6.824 6.823 6.821
100-01+ 6.818 6.822 6.820 6.819 6.816 6.814
100-02 6.812 6.818 6.815 6.813 6.810 6.807
100-02+ 6.806 6.814 6.810 6.808 6.804 6.800
100-03 6.800 6.810 6.805 6.802 6.797 6.793
100-03+ 6.794 6.805 6.800 6.797 6.791 6.786
100-04 6.788 6.801 6.795 6.791 6.785 6.779
100-04+ 6.782 6.797 6.790 6.785 6.779 6.772
100-05 6.776 6.792 6.784 6.780 6.772 6.765
100-05+ 6.770 6.788 6.779 6.774 6.766 6.758
100-06 6.764 6.784 6.774 6.769 6.760 6.751
100-06+ 6.759 6.779 6.769 6.763 6.753 6.744
100-07 6.753 6.775 6.764 6.758 6.747 6.737
100-07+ 6.747 6.771 6.759 6.752 6.741 6.730
First Payment 2.569 3.903 3.069 2.736 2.403 2.153
Average Life 3.009 4.303 3.550 3.229 2.795 2.496
Last Payment 3.569 4.736 4.153 3.819 3.319 2.903
Mod.Dur. @ 100-00 2.639 3.622 3.060 2.812 2.469 2.226
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
14
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A4 AAA/Aaa CLASS
*** TO CALL ***
CURRENT BALANCE: $30,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $30,000,000.00 YIELD TABLE DATE: 11/23/99
BOND A4 BE-YIELD TABLE
PREPAYMENT SPEED
<TABLE>
<CAPTION>
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 7.075 7.058 7.065 7.069 7.080 7.089
99-24+ 7.070 7.054 7.061 7.065 7.075 7.083
99-25 7.065 7.050 7.056 7.060 7.070 7.077
99-25+ 7.060 7.046 7.052 7.055 7.064 7.071
99-26 7.055 7.042 7.048 7.051 7.059 7.065
99-26+ 7.050 7.038 7.043 7.046 7.054 7.059
99-27 7.045 7.034 7.039 7.041 7.048 7.053
99-27+ 7.040 7.030 7.034 7.037 7.043 7.048
99-28 7.035 7.026 7.030 7.032 7.038 7.042
99-28+ 7.030 7.022 7.026 7.027 7.032 7.036
99-29 7.025 7.018 7.021 7.023 7.027 7.030
99-29+ 7.020 7.015 7.017 7.018 7.022 7.024
99-30 7.015 7.011 7.012 7.013 7.016 7.018
99-30+ 7.010 7.007 7.008 7.009 7.011 7.012
99-31 7.005 7.003 7.004 7.004 7.006 7.007
99-31+ 7.000 6.999 6.999 7.000 7.000 7.001
100-00 6.995 6.995 6.995 6.995 6.995 6.995
100-00+ 6.990 6.991 6.990 6.990 6.990 6.989
100-01 6.985 6.987 6.986 6.986 6.984 6.983
100-01+ 6.980 6.983 6.982 6.981 6.979 6.977
100-02 6.975 6.979 6.977 6.976 6.974 6.971
100-02+ 6.970 6.975 6.973 6.972 6.968 6.966
100-03 6.965 6.971 6.969 6.967 6.963 6.960
100-03+ 6.960 6.967 6.964 6.962 6.958 6.954
100-04 6.955 6.963 6.960 6.958 6.952 6.948
100-04+ 6.950 6.959 6.955 6.953 6.947 6.942
100-05 6.945 6.956 6.951 6.948 6.942 6.936
100-05+ 6.940 6.952 6.947 6.944 6.936 6.931
100-06 6.935 6.948 6.942 6.939 6.931 6.925
100-06+ 6.930 6.944 6.938 6.935 6.926 6.919
100-07 6.925 6.940 6.933 6.930 6.920 6.913
100-07+ 6.920 6.936 6.929 6.925 6.915 6.907
First Payment 3.569 4.736 4.153 3.819 3.319 2.903
Average Life 3.646 4.813 4.229 3.966 3.395 3.054
Last Payment 3.653 4.819 4.236 3.986 3.403 3.069
Mod.Dur. @ 100-00 3.125 3.970 3.556 3.363 2.934 2.669
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
15
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A1 AAA/Aaa CLASS
*** TO MATURITY ***
CURRENT BALANCE: $117,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $117,000,000.00 YIELD TABLE DATE: 11/23/99
BOND A1 BE-YIELD TABLE
PREPAYMENT SPEED
<TABLE>
<CAPTION>
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 6.767 6.590 6.700 6.739 6.795 6.839
99-24+ 6.743 6.577 6.680 6.717 6.769 6.810
99-25 6.719 6.564 6.661 6.695 6.744 6.782
99-25+ 6.696 6.552 6.641 6.673 6.719 6.754
99-26 6.672 6.539 6.622 6.651 6.693 6.726
99-26+ 6.648 6.527 6.602 6.630 6.668 6.698
99-27 6.625 6.514 6.583 6.608 6.642 6.670
99-27+ 6.601 6.501 6.564 6.586 6.617 6.641
99-28 6.578 6.489 6.544 6.564 6.592 6.613
99-28+ 6.554 6.476 6.525 6.542 6.566 6.585
99-29 6.530 6.464 6.505 6.520 6.541 6.557
99-29+ 6.507 6.451 6.486 6.498 6.515 6.529
99-30 6.483 6.439 6.466 6.476 6.490 6.501
99-30+ 6.459 6.426 6.447 6.454 6.465 6.473
99-31 6.436 6.414 6.427 6.432 6.439 6.445
99-31+ 6.412 6.401 6.408 6.411 6.414 6.417
100-00 6.389 6.389 6.389 6.389 6.389 6.389
100-00+ 6.365 6.376 6.369 6.367 6.363 6.361
100-01 6.342 6.363 6.350 6.345 6.338 6.333
100-01+ 6.318 6.351 6.330 6.323 6.313 6.305
100-02 6.294 6.338 6.311 6.301 6.287 6.277
100-02+ 6.271 6.326 6.292 6.279 6.262 6.249
100-03 6.247 6.313 6.272 6.258 6.237 6.221
100-03+ 6.224 6.301 6.253 6.236 6.212 6.193
100-04 6.200 6.288 6.234 6.214 6.186 6.165
100-04+ 6.177 6.276 6.214 6.192 6.161 6.137
100-05 6.153 6.263 6.195 6.170 6.136 6.109
100-05+ 6.130 6.251 6.176 6.149 6.111 6.081
100-06 6.106 6.238 6.156 6.127 6.085 6.053
100-06+ 6.083 6.226 6.137 6.105 6.060 6.025
100-07 6.059 6.213 6.118 6.083 6.035 5.997
100-07+ 6.036 6.201 6.098 6.062 6.010 5.969
First Payment 0.069 0.069 0.069 0.069 0.069 0.069
Average Life 0.703 1.359 0.860 0.761 0.653 0.588
Last Payment 1.486 2.736 1.819 1.653 1.403 1.236
Mod.Dur. @ 100-00 0.663 1.247 0.805 0.715 0.617 0.557
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
16
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A2 AAA/Aaa CLASS
*** TO MATURITY ***
CURRENT BALANCE: $60,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $60,000,000.00 YIELD TABLE DATE: 11/23/99
BOND A2 BE-YIELD TABLE
PREPAYMENT SPEED
<TABLE>
<CAPTION>
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 6.793 6.742 6.771 6.783 6.803 6.819
99-24+ 6.784 6.737 6.764 6.775 6.794 6.809
99-25 6.776 6.731 6.756 6.767 6.784 6.798
99-25+ 6.767 6.726 6.749 6.759 6.775 6.788
99-26 6.758 6.721 6.742 6.751 6.766 6.778
99-26+ 6.750 6.715 6.735 6.743 6.757 6.768
99-27 6.741 6.710 6.727 6.735 6.748 6.758
99-27+ 6.733 6.704 6.720 6.727 6.738 6.747
99-28 6.724 6.699 6.713 6.719 6.729 6.737
99-28+ 6.716 6.693 6.706 6.711 6.720 6.727
99-29 6.707 6.688 6.699 6.703 6.711 6.717
99-29+ 6.698 6.683 6.692 6.695 6.702 6.707
99-30 6.690 6.677 6.684 6.687 6.692 6.696
99-30+ 6.681 6.672 6.677 6.679 6.683 6.686
99-31 6.673 6.666 6.670 6.672 6.674 6.676
99-31+ 6.664 6.661 6.663 6.664 6.665 6.666
100-00 6.656 6.656 6.656 6.656 6.656 6.656
100-00+ 6.647 6.650 6.648 6.648 6.646 6.645
100-01 6.638 6.645 6.641 6.640 6.637 6.635
100-01+ 6.630 6.639 6.634 6.632 6.628 6.625
100-02 6.621 6.634 6.627 6.624 6.619 6.615
100-02+ 6.613 6.628 6.620 6.616 6.610 6.605
100-03 6.604 6.623 6.612 6.608 6.600 6.595
100-03+ 6.596 6.618 6.605 6.600 6.591 6.584
100-04 6.587 6.612 6.598 6.592 6.582 6.574
100-04+ 6.579 6.607 6.591 6.584 6.573 6.564
100-05 6.570 6.601 6.584 6.576 6.564 6.554
100-05+ 6.562 6.596 6.577 6.568 6.555 6.544
100-06 6.553 6.591 6.569 6.560 6.545 6.534
100-06+ 6.544 6.585 6.562 6.552 6.536 6.523
100-07 6.536 6.580 6.555 6.544 6.527 6.513
100-07+ 6.527 6.574 6.548 6.536 6.518 6.503
First Payment 1.486 2.736 1.819 1.653 1.403 1.236
Average Life 2.010 3.313 2.426 2.168 1.864 1.671
Last Payment 2.569 3.903 3.069 2.736 2.403 2.153
Mod.Dur. @ 100-00 1.825 2.887 2.174 1.958 1.701 1.534
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
17
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A3 AAA/Aaa CLASS
*** TO MATURITY ***
CURRENT BALANCE: $43,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $43,000,000.00 YIELD TABLE DATE: 11/23/99
BOND A3 BE-YIELD TABLE
PREPAYMENT SPEED
<TABLE>
<CAPTION>
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 6.930 6.905 6.917 6.924 6.937 6.948
99-24+ 6.924 6.900 6.912 6.919 6.931 6.941
99-25 6.918 6.896 6.907 6.913 6.924 6.934
99-25+ 6.912 6.892 6.902 6.908 6.918 6.927
99-26 6.907 6.887 6.897 6.902 6.911 6.920
99-26+ 6.901 6.883 6.892 6.897 6.905 6.913
99-27 6.895 6.879 6.887 6.891 6.899 6.906
99-27+ 6.889 6.874 6.881 6.885 6.892 6.899
99-28 6.883 6.870 6.876 6.880 6.886 6.892
99-28+ 6.877 6.866 6.871 6.874 6.880 6.885
99-29 6.871 6.861 6.866 6.869 6.873 6.878
99-29+ 6.865 6.857 6.861 6.863 6.867 6.871
99-30 6.859 6.853 6.856 6.858 6.861 6.864
99-30+ 6.853 6.848 6.851 6.852 6.854 6.857
99-31 6.847 6.844 6.846 6.847 6.848 6.849
99-31+ 6.841 6.840 6.841 6.841 6.842 6.842
100-00 6.835 6.835 6.835 6.835 6.835 6.835
100-00+ 6.830 6.831 6.830 6.830 6.829 6.828
100-01 6.824 6.827 6.825 6.824 6.823 6.821
100-01+ 6.818 6.822 6.820 6.819 6.816 6.814
100-02 6.812 6.818 6.815 6.813 6.810 6.807
100-02+ 6.806 6.814 6.810 6.808 6.804 6.800
100-03 6.800 6.810 6.805 6.802 6.797 6.793
100-03+ 6.794 6.805 6.800 6.797 6.791 6.786
100-04 6.788 6.801 6.795 6.791 6.785 6.779
100-04+ 6.782 6.797 6.790 6.785 6.779 6.772
100-05 6.776 6.792 6.784 6.780 6.772 6.765
100-05+ 6.770 6.788 6.779 6.774 6.766 6.758
100-06 6.764 6.784 6.774 6.769 6.760 6.751
100-06+ 6.759 6.779 6.769 6.763 6.753 6.744
100-07 6.753 6.775 6.764 6.758 6.747 6.737
100-07+ 6.747 6.771 6.759 6.752 6.741 6.730
First Payment 2.569 3.903 3.069 2.736 2.403 2.153
Average Life 3.009 4.303 3.550 3.229 2.795 2.496
Last Payment 3.569 4.736 4.153 3.819 3.319 2.903
Mod.Dur. @ 100-00 2.639 3.622 3.060 2.812 2.469 2.226
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
18
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
BOND A4 AAA/Aaa CLASS
*** TO MATURITY ***
CURRENT BALANCE: $30,000,000.00 DATED DATE: 11/23/99
FIRST PAYMENT: 12/18/99
ORIGINAL BALANCE: $30,000,000.00 YIELD TABLE DATE: 11/23/99
BOND A4 BE-YIELD TABLE
PREPAYMENT SPEED
<TABLE>
<CAPTION>
1.5% 0.00% 1.00% 1.30% 1.70% 2.00%
PRICE ABS ABS ABS ABS ABS ABS
<S> <C> <C> <C> <C> <C> <C>
99-24 7.068 7.055 7.060 7.064 7.073 7.082
99-24+ 7.063 7.051 7.056 7.060 7.068 7.077
99-25 7.059 7.047 7.052 7.055 7.063 7.072
99-25+ 7.054 7.043 7.048 7.051 7.058 7.066
99-26 7.050 7.040 7.044 7.047 7.054 7.061
99-26+ 7.045 7.036 7.040 7.042 7.049 7.055
99-27 7.041 7.032 7.036 7.038 7.044 7.050
99-27+ 7.036 7.028 7.031 7.034 7.039 7.044
99-28 7.031 7.025 7.027 7.029 7.034 7.039
99-28+ 7.027 7.021 7.023 7.025 7.029 7.033
99-29 7.022 7.017 7.019 7.021 7.024 7.028
99-29+ 7.018 7.013 7.015 7.016 7.019 7.022
99-30 7.013 7.010 7.011 7.012 7.014 7.017
99-30+ 7.009 7.006 7.007 7.008 7.010 7.011
99-31 7.004 7.002 7.003 7.003 7.005 7.006
99-31+ 6.999 6.999 6.999 6.999 7.000 7.000
100-00 6.995 6.995 6.995 6.995 6.995 6.995
100-00+ 6.990 6.991 6.991 6.991 6.990 6.989
100-01 6.986 6.987 6.987 6.986 6.985 6.984
100-01+ 6.981 6.984 6.983 6.982 6.980 6.978
100-02 6.977 6.980 6.979 6.978 6.975 6.973
100-02+ 6.972 6.976 6.975 6.973 6.970 6.968
100-03 6.968 6.973 6.971 6.969 6.966 6.962
100-03+ 6.963 6.969 6.966 6.965 6.961 6.957
100-04 6.958 6.965 6.962 6.960 6.956 6.951
100-04+ 6.954 6.961 6.958 6.956 6.951 6.946
100-05 6.949 6.958 6.954 6.952 6.946 6.940
100-05+ 6.945 6.954 6.950 6.948 6.941 6.935
100-06 6.940 6.950 6.946 6.943 6.936 6.929
100-06+ 6.936 6.946 6.942 6.939 6.932 6.924
100-07 6.931 6.943 6.938 6.935 6.927 6.918
100-07+ 6.927 6.939 6.934 6.930 6.922 6.913
First Payment 3.569 4.736 4.153 3.819 3.319 2.903
Average Life 4.056 5.139 4.643 4.330 3.752 3.299
Last Payment 4.819 5.569 5.403 5.153 4.403 3.736
Mod.Dur. @ 100-00 3.427 4.194 3.849 3.626 3.202 2.859
</TABLE>
The preliminary pricing information contained herein is neither an offer to sell
nor a solicitation to buy any securities. Moreover, there is no assurance that
such information will not change prior to final pricing. Any formal offer or
solicitation will be made by a prospectus (or offering memorandum) to be
accompanied or followed by a written confirmation.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
19
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
Collateral Information
The collateral information presented herein is based on the collateral pool as
of September 30, 1999. Additional collateral will be accumulated before the
Closing Date to reach the Initial Collateral Balance. The characteristics of
such additional collateral are not expected to be materially different from the
collateral information presented herein.
Note: Percentages may not add to 100% due to rounding.
- --------------------------------------------------------------------------------
- FLAGSHIP 99-2
- Cut Off Date of Tape is 9/30/99
- FIXED AUTO LOANS
- $231,483,767.50
- Auto Loan Summary Report
- --------------------------------------------------------------------------------
Number of Auto Loans: 14,903
Aggregate Unpaid Principal Balance: $231,483,767.50
Aggregate Original Principal Balance: $241,218,648.25
Weighted Average Gross Coupon: 14.825%
Gross Coupon Range: 8.390% - 24.200%
- --------------------------------------------------------------------------------
Average Unpaid Principal Balance: $15,532.70
Average Original Principal Balance: $16,185.91
Maximum Unpaid Principal Balance: $37,414.26
Minimum Unpaid Principal Balance: $15.05
Maximum Original Principal Balance: $39,348.90
Minimum Original Principal Balance: $2,500.00
Weighted Avg. Stated Rem. Term: 61.066
Stated Rem Term Range: 9.000 - 72.000
Weighted Average Age (Orig Term - Rem Term): 3.870
Age Range: 0.000 - 26.000
Weighted Average Original Term: 64.936
Original Term Range: 18.000 - 72.000
Weighted Average Borrower FICO: 635.024
Borrower FICO Range: 424.000 - 852.000
- --------------------------------------------------------------------------------
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
20
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
GROSS COUPON
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Gross Auto Auto Principal Principal
Coupon Loans Loans Balance Balance
<S> <C> <C> <C> <C>
8.000% < Gross Coupon <= 8.500% 2 .01 $21,746.64 .01
8.500% < Gross Coupon <= 9.000% 15 .10 $191,867.09 .08
9.000% < Gross Coupon <= 9.500% 8 .05 $135,186.09 .06
9.500% < Gross Coupon <= 10.000% 191 1.28 $2,974,745.90 1.29
10.000% < Gross Coupon <= 10.500% 159 1.07 $2,480,485.36 1.07
10.500% < Gross Coupon <= 11.000% 238 1.60 $3,860,997.35 1.67
11.000% < Gross Coupon <= 11.500% 378 2.54 $6,651,391.77 2.87
11.500% < Gross Coupon <= 12.000% 557 3.74 $9,692,829.92 4.19
12.000% < Gross Coupon <= 12.500% 601 4.03 $10,772,730.47 4.65
12.500% < Gross Coupon <= 13.000% 982 6.59 $15,563,673.54 6.72
13.000% < Gross Coupon <= 13.500% 1,386 9.30 $21,842,493.33 9.44
13.500% < Gross Coupon <= 14.000% 1,086 7.29 $18,168,744.61 7.85
14.000% < Gross Coupon <= 14.500% 1,070 7.18 $18,398,842.55 7.95
14.500% < Gross Coupon <= 15.000% 1,074 7.21 $16,538,989.46 7.14
15.000% < Gross Coupon <= 15.500% 796 5.34 $12,818,339.40 5.54
15.500% < Gross Coupon <= 16.000% 1,251 8.39 $19,502,249.73 8.42
16.000% < Gross Coupon <= 16.500% 1,203 8.07 $17,093,602.53 7.38
16.500% < Gross Coupon <= 17.000% 1,040 6.98 $15,003,241.41 6.48
17.000% < Gross Coupon <= 17.500% 667 4.48 $10,486,057.97 4.53
17.500% < Gross Coupon <= 18.000% 1,688 11.33 $23,095,458.79 9.98
18.000% < Gross Coupon <= 18.500% 119 .80 $1,727,032.00 .75
18.500% < Gross Coupon <= 19.000% 131 .88 $1,567,610.54 .68
19.000% < Gross Coupon <= 19.500% 50 .34 $613,376.95 .26
19.500% < Gross Coupon <= 20.000% 111 .74 $1,302,921.84 .56
20.000% < Gross Coupon <= 20.500% 19 .13 $227,187.29 .10
20.500% < Gross Coupon <= 21.000% 30 .20 $298,473.56 .13
21.000% < Gross Coupon <= 21.500% 7 .05 $64,523.37 .03
21.500% < Gross Coupon <= 22.000% 22 .15 $178,078.83 .08
22.000% < Gross Coupon <= 22.500% 14 .09 $148,710.09 .06
22.500% < Gross Coupon <= 23.000% 4 .03 $36,520.63 .02
23.000% < Gross Coupon <= 23.500% 1 .01 $6,563.14 .00
23.500% < Gross Coupon <= 24.000% 2 .01 $12,448.50 .01
24.000% < Gross Coupon <= 24.500% 1 .01 $6,646.85 .00
- -----------------------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
=========================================================================================
</TABLE>
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
21
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
GEOGRAPHIC DISTRIBUTION
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Auto Auto Principal Principal
State Loans Loans Balance Balance
AA (*) 1 .01 $12,589.31 .01
AE (*) 1 .01 $29,449.76 .01
AK 1 .01 $15,079.85 .01
AL 7 .05 $122,411.75 .05
AR 29 .19 $501,504.40 .22
AZ 551 3.70 $9,563,371.13 4.13
CA 904 6.07 $16,419,632.95 7.09
CO 72 .48 $1,154,685.33 .50
CT 6 .04 $80,240.61 .03
DC 93 .62 $1,479,067.35 .64
DE 229 1.54 $3,494,739.73 1.51
FL 1,001 6.72 $13,931,336.61 6.02
GA 1,019 6.84 $17,479,583.39 7.55
IA 2 .01 $38,145.43 .02
ID 1 .01 $20,634.87 .01
IL 7 .05 $100,904.54 .04
IN 6 .04 $85,311.92 .04
KS 70 .47 $1,018,508.82 .44
KY 3 .02 $35,255.49 .02
LA 51 .34 $883,515.74 .38
MA 2 .01 $26,986.43 .01
MD 1,779 11.94 $26,847,208.62 11.60
MI 25 .17 $324,771.11 .14
MN 1 .01 $13,338.45 .01
MO 70 .47 $1,285,361.61 .56
MS 2 .01 $39,891.93 .02
MT 1 .01 $20,063.94 .01
NC 2,993 20.08 $47,537,521.76 20.54
ND 2 .01 $42,078.69 .02
NE 1 .01 $11,533.24 .00
NJ 425 2.85 $6,194,244.36 2.68
NM 4 .03 $73,446.42 .03
NV 6 .04 $98,838.03 .04
NY 498 3.34 $7,085,919.09 3.06
OH 8 .05 $110,540.36 .05
OK 964 6.47 $15,701,284.87 6.78
OR 3 .02 $38,284.55 .02
PA 617 4.14 $9,048,242.61 3.91
PR 1 .01 $13,556.69 .01
RI 1 .01 $12,566.23 .01
SC 640 4.29 $9,619,510.70 4.16
SD 1 .01 $18,509.87 .01
TN 36 .24 $632,214.43 .27
TX 2,157 14.47 $31,426,083.39 13.58
VA 580 3.89 $8,302,130.41 3.59
WA 6 .04 $101,316.28 .04
WI 2 .01 $30,428.73 .01
WV 21 .14 $316,146.07 .14
WY 3 .02 $45,779.65 .02
- -------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
=========================================================================
(*) Military address
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
22
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
CURRENT LOAN AMOUNT
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Current Auto Auto Principal Principal
Loan Amount Loans Loans Balance Balance
<S> <C> <C> <C> <C>
0.01 - 5,000.00 144 .97 $501,582.43 .22
5,000.01 - 10,000.00 2,045 13.72 $16,900,465.50 7.30
10,000.01 - 15,000.00 5,188 34.81 $65,227,765.53 28.18
15,000.01 - 20,000.00 4,474 30.02 $77,490,720.57 33.48
20,000.01 - 25,000.00 2,293 15.39 $50,500,829.14 21.82
25,000.01 - 30,000.00 665 4.46 $17,877,913.42 7.72
30,000.01 - 35,000.00 90 .60 $2,839,463.55 1.23
35,000.01 - 40,000.00 4 .03 $145,027.36 .06
- ------------------------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
==========================================================================================
</TABLE>
ORIGINAL LOAN AMOUNT
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Original Auto Auto Principal Principal
Loan Amount Loans Loans Balance Balance
<S> <C> <C> <C> <C>
0.01 - 5,000.00 42 .28 $158,923.14 .07
5,000.01 - 10,000.00 1,702 11.42 $13,230,184.77 5.72
10,000.01 - 15,000.00 5,004 33.58 $60,334,300.97 26.06
15,000.01 - 20,000.00 4,620 31.00 $77,119,918.54 33.32
20,000.01 - 25,000.00 2,581 17.32 $55,061,118.63 23.79
25,000.01 - 30,000.00 806 5.41 $21,017,993.20 9.08
30,000.01 - 35,000.00 138 .93 $4,211,745.75 1.82
35,000.01 - 40,000.00 10 .07 $349,582.50 .15
- ------------------------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
==========================================================================================
</TABLE>
REMAINING TERM TO SCHEDULED MATURITY DATE
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Remaining Term to Auto Auto Principal Principal
Scheduled Maturity Date Loans Loans Balance Balance
<S> <C> <C> <C> <C>
0 < Rem Term <= 12 3 .02 $7,753.89 .00
12 < Rem Term <= 24 51 .34 $253,684.18 .11
24 < Rem Term <= 36 336 2.25 $2,457,412.59 1.06
36 < Rem Term <= 48 1,430 9.60 $14,767,298.40 6.38
48 < Rem Term <= 60 6,229 41.80 $84,483,036.71 36.50
60 < Rem Term <= 72 6,854 45.99 $129,514,581.73 55.95
- -----------------------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
=========================================================================================
</TABLE>
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
23
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
ORIGINAL TERM TO SCHEDULED MATURITY DATE
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Original Term to Auto Auto Principal Principal
Scheduled Maturity Date Loans Loans Balance Balance
<S> <C> <C> <C> <C>
12 < Original Maturity <= 24 28 .19 $142,682.95 .06
24 < Original Maturity <= 36 249 1.67 $1,684,544.46 .73
36 < Original Maturity <= 48 1,084 7.27 $10,401,445.27 4.49
48 < Original Maturity <= 60 6,346 42.58 $84,335,432.12 36.43
60 < Original Maturity <= 72 7,196 48.29 $134,919,662.70 58.28
- -----------------------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
=========================================================================================
</TABLE>
ORIGINATION DATE
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Auto Auto Principal Principal
Origination Date Loans Loans Balance Balance
<S> <C> <C> <C> <C>
July 1997 1 .01 $11,308.31 .00
September 1997 2 .01 $26,621.24 .01
October 1997 1 .01 $586.44 .00
November 1997 8 .05 $59,124.45 .03
December 1997 53 .36 $549,647.27 .24
January 1998 17 .11 $158,516.02 .07
February 1998 21 .14 $211,850.46 .09
March 1998 33 .22 $325,143.07 .14
April 1998 38 .25 $408,933.14 .18
May 1998 28 .19 $291,159.37 .13
June 1998 23 .15 $280,431.14 .12
July 1998 33 .22 $386,912.66 .17
August 1998 30 .20 $407,060.34 .18
September 1998 37 .25 $458,460.46 .20
October 1998 44 .30 $559,644.83 .24
November 1998 39 .26 $478,691.18 .21
December 1998 99 .66 $1,326,406.70 .57
January 1999 326 2.19 $5,099,280.58 2.20
February 1999 856 5.74 $12,467,188.65 5.39
March 1999 952 6.39 $14,916,980.18 6.44
April 1999 2,466 16.55 $36,981,009.15 15.98
May 1999 2,552 17.12 $39,426,351.86 17.03
June 1999 2,673 17.94 $42,428,842.67 18.33
July 1999 2,325 15.60 $37,708,508.00 16.29
August 1999 1,861 12.49 $30,123,506.79 13.01
September 1999 385 2.58 $6,391,602.54 2.76
- -----------------------------------------------------------------------------------------
Total..... 14,903 100.00% $231,483,767.50 100.00%
=========================================================================================
</TABLE>
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
24
<PAGE>
Preliminary Background Information for
Flagship Auto Receivables Owner Trust
Asset-Backed Notes, Series 1999-2
MODEL YEAR OF VEHICLE
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Auto Auto Principal Principal
Year Loans Loans Balance Balance
1990 6 .04 $33,243.30 .01
1991 47 .32 $325,669.54 .14
1992 186 1.25 $1,418,905.41 .61
1993 429 2.88 $3,878,812.24 1.68
1994 713 4.78 $7,393,919.35 3.19
1995 1,568 10.52 $18,521,528.42 8.00
1996 2,594 17.41 $35,997,858.90 15.55
1997 2,744 18.41 $41,994,504.96 18.14
1998 2,521 16.92 $41,578,419.99 17.96
1999 3,881 26.04 $75,711,239.66 32.71
2000 214 1.44 $4,629,665.73 2.00
- -------------------------------------------------------------------------
Total.... 14,903 14,903 $231,483,767.50 100.00%
=========================================================================
NEW/USED VEHICLE
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Auto Auto Principal Principal
New/Used Loans Loans Balance Balance
New 3,918 26.29 $76,800,782.86 33.18
Used 10,985 73.71 $154,682,984.64 66.82
- -------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
=========================================================================
BORROWER FICO RANGE
<TABLE>
<CAPTION>
Percentage of
Aggregate Cut-Off Date
Number of Percentage of Unpaid Aggregate
Auto Auto Principal Principal
FICO Range Loans Loans Balance Balance
<S> <C> <C> <C> <C>
400 < FICO <= 425 1 .01 $15,232.37 .01
425 < FICO <= 450 1 .01 $12,118.56 .01
450 < FICO <= 475 9 .06 $99,000.36 .04
475 < FICO <= 500 34 .23 $403,854.22 .17
500 < FICO <= 525 129 .87 $1,477,283.21 .64
525 < FICO <= 550 522 3.50 $5,975,359.44 2.58
550 < FICO <= 575 810 5.44 $9,899,775.47 4.28
575 < FICO <= 600 2,212 14.84 $32,685,125.01 14.12
600 < FICO <= 625 3,141 21.08 $48,888,503.52 21.12
625 < FICO <= 650 3,356 22.52 $55,150,701.84 23.82
650 < FICO <= 675 2,372 15.92 $39,412,811.58 17.03
675 < FICO <= 700 1,082 7.26 $17,818,637.37 7.70
700 < FICO <= 725 603 4.05 $10,101,039.43 4.36
725 < FICO <= 750 328 2.20 $5,230,352.41 2.26
750 < FICO <= 800 271 1.82 $3,899,132.79 1.68
800 < FICO <= 850 31 .21 $400,703.88 .17
850 < FICO 1 .01 $14,136.04 .01
- -----------------------------------------------------------------------------------------
Total.... 14,903 100.00% $231,483,767.50 100.00%
=========================================================================================
</TABLE>
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED ADVISOR
IMMEDIATELY.
25
