<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 22, 1999
Prudential Securities Secured Financing Corporation
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(Exact name of registrant as specified in its charter)
Delaware 333-75489 13-3526694
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(State or Other Jurisdiction of (Commission File (I.R.S. Employer
Incorporation) Number) Identification No.)
One New York Plaza
New York, New York 10292
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(Address of Principal Executive (Zip Code)
Offices)
Registrant's telephone number, including area code (212) 778-1000
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No Change
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(Former name or former address, if changed since last report)
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<PAGE>
Item 5. Other Events
In connection with the offering of ABFS Mortgage Loan Trust 1999-4,
Mortgage Backed Notes, Series 1999-4 described in a Prospectus Supplement dated
December 16, 1999, certain "Computational Materials" within the meanings of the
May 20, 1994 Kidder, Peabody No-Action Letter and the February 17, 1995 Public
Securities Association No-Action Letter were furnished to certain prospective
investors (the "Related Computational Materials").
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
(a) Not applicable
(b) Not applicable
(c) Exhibit 99.1. Related Computational Materials (as defined in Item 5
above).
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this Report to be signed on
its behalf by the undersigned thereunto duly authorized.
PRUDENTIAL SECURITIES SECURED FINANCING
CORPORATION
------------------------------------------------
as Depositor and on behalf of ABFS
Mortgage Loan Trust 1999-4
Registrant
By: /s/ Evan Mitnick
--------------------------------
Name: Evan Mitnick
Title: Vice President
Dated: December 22, 1999
<PAGE>
EXHIBIT INDEX
Exhibit No. Description
- ----------- -----------
99.1 Related Computational Materials (as
defined in Item 5 above).
<PAGE>
EXHIBIT 99.1
------------
PRELIMINARY
BACKGROUND INFORMATION
American Business Financial Services
ABFS Mortgage Loan Trust 1999-4
APPROXIMATE CLASS SIZES
- --------------------------------------------------------------------------------
*********(Fixed-Rate Collateral)*********
$ [100,000,000] Class A-1 Fixed-Rate Notes (Pool A)
$ [ 90,000,000] Class A-2 Fixed-Rate Notes (Pool B)
$ [ 30,000,000] Class A-3 Floating-Rate Notes (Pool C)
- --------------------------------------------------------------------------------
The information provided herein is provided solely to you by Prudential
Securities Incorporated ("PSI") as underwriter for the ABFS Mortgage Loan Trust
1999-4 transaction, and not by, or as agent for, American Business Financial
Services, Inc. ("ABFS" or the "Company") or any of its affiliates. The analysis
in this report is accurate to the best of PSI's knowledge and is based on
information provided by the Company. PSI makes no representations as to the
accuracy of such information provided to it by the Company. All assumptions and
information in this report reflect PSI's judgment as of this date and are
subject to change. All analyses are based on certain assumptions noted herein
and different assumptions could yield substantially different results. You are
cautioned that there is no universally accepted method for analyzing financial
instruments. You should review the assumptions; there may be differences between
these assumptions and your actual business practices. Further, PSI does not
guarantee any results and there is no guarantee as to the liquidity of the
instruments involved in this analysis. The decision to adopt any strategy
remains your responsibility. PSI (or any of its affiliates) or its officers,
directors, analysts or employees may have positions in securities, commodities
or derivative instruments thereon referred to herein, and may, as principal or
agent, buy or sell such securities, commodities or derivative instruments. In
addition, PSI may make a market in the securities referred to herein. Neither
the information nor the assumptions reflected herein shall be construed to be,
or constitute, an offer to sell or buy or a solicitation of an offer to sell or
buy any securities, commodities or derivative instruments mentioned herein. No
sale of any securities, commodities or derivative instruments should be
consumated without the purchaser first having received a prospectus and, if
required, prospectus supplement. The Notes are offered by PSI when, as and if
issued, subject to delivery by the Depositor and acceptance by PSI, to prior
sale and to withdrawal, cancellation or modification of the offer without
notice. Finally, PSI has not addressed the legal, accounting and tax
implications of the analysis with respect to you, and PSI strongly urges you to
seek advice from your counsel, accountant and tax advisor.
<PAGE>
American Business Financial Services - ABFS Mortgage Loan Trust 1999-4
PRICING INFORMATION
(FIXED-RATE NOTES)
--------------------------------------
Class: A-1*
Approximate
Face Amount: 100,000,000
Coupon: 7.675
Price: 100-00
Yield: 7.683
Spread: 161
Exp Avg Life
to Call: 3.187 yrs
Exp Avg Life
to Maturity: 3.460 yrs
Exp 1st
Prin Pmt: 01/15/2000
Exp Mat
to call: 09/15/2007
Exp Mat: 07/15/2016
Stated Mat: 04/15/2031
Exp Rating
(Moody's/S&P): Aaa/AAA
Pricing Speed: 25% HEP
Pricing Date: 10/21/1999
Investor
Settle Date: 12/22/1999
Cut-off Date
(Close of Business): 11/30/1999
Pmt Delay: 14 days
Dated Date: 12/01/1999
Int Pmt: 30/360
Pmt Terms: Monthly
1st Int.
Pmt Date: 01/15/2000
Collateral
Type: Fixed-Rate ("Pool A")
SMMEA
<PAGE>
Eligibility: Non-SMMEA
Distribution: Public
Settlement: DTC Only
THIS TERMSHEET SUPERSEDES ANY PREVIOUS TERMSHEETS, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
American Business Financial Services - ABFS Mortgage Loan Trust 1999-4
*Class A-1 Coupon Step-up: Class A-1 is priced to call. If the
Servicer does not exercise the Cleanup Call,
the Coupon on Class A-1 will increase by 50
basis points.
Cashflow Priority: 1) Repayment of unreimbursed Servicer advances;
2) Servicing fee;
3) Trustee fee;
4) Surety fee;
5) Repayment of unreimbursed Surety payments;
6) Accrued monthly interest for Class A-1
Noteholders;
7) Monthly principal to the Class A-1
Noteholders (as described below);
8) Certain excess cashflow to build
overcollateralization ("O/C") for Class A-1
Notes;
9) To make a pro rata payment for certain
shortfalls (excluding net mortgage
loan interest shortfalls) in payments on the
Class A-2 and Class A-3 Notes;
10) To make a pro rata deposit to a reserve fund
for the Class A-2 and Class A-3 Notes if
either or both are then underfunded;
11) To make a pro rata payment for net mortgage
loan interest shortfalls in payments
on the Class A-2 and Class A-3 Notes;
12) Any remaining excess cashflow to the holders
of the Trust Certificates.
Class A-1 Note
Principal Paydown: All principal collected from Pool A is paid to
the Class A-1 Noteholders.
<PAGE>
THIS TERMSHEET SUPERSEDES ANY PREVIOUS TERMSHEETS, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
American Business Financial Services - ABFS Mortgage Loan Trust 1999-4
PRICING INFORMATION
(FIXED-RATE NOTES)
--------------------------------------
Class: A-2**
Approximate
Face Amount: 90,000,000
Coupon: 7.200
Price: 99-02
Yield: 7.562
Spread: 143
Exp Avg Life
to Call: 3.183 yrs
Exp Avg Life
to Maturity: 3.455 yrs
Exp 1st
Prin Pmt: 01/15/2000
Exp Mat
to call: 09/15/2007
Exp Mat: 07/15/2016
Stated Mat: 04/15/2031
Exp Rating
(Moody's/S&P): Aaa/AAA
<PAGE>
Pricing Speed: 25% HEP
Pricing Date: 12/01/1999
Investor
Settle Date: 12/22/1999
Cut-off Date 11/30/1999
(Close of Business):
Pmt Delay: 14 days
Dated Date: 12/01/1999
Int Pmt: 30/360
Pmt Terms: Monthly
1st Int.
Pmt Date: 01/15/2000
Collateral
Type: Fixed-Rate ("Pool B")
SMMEA
Eligibility: Non-SMMEA
Distribution: Public
Settlement: DTC Only
THIS TERMSHEET SUPERSEDES ANY PREVIOUS TERMSHEETS, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
<PAGE>
American Business Financial Services - ABFS Mortgage Loan Trust 1999-4
**Class A-2 Coupon Step-up: Class A-2 is priced to call. If the Servicer
does not exercise the Cleanup Call, the Coupon
on Class A-2 will increase by 50 basis points.
Cashflow Priority: 1) Repayment of unreimbursed Servicer advances;
2) Servicing fee;
3) Trustee fee;
4) Surety fee;
5) Repayment of unreimbursed Surety payments;
6) Accrued monthly interest for Class A-2
Noteholders;
7) Monthly principal to the Class A-2 Noteholders
(as described below);
8) Certain excess cashflow to build
overcollateralization ("O/C") for Class A-2
Notes;
9) To make a pro rata payment for certain
shortfalls (except for net mortgage loan
interest shortfalls) in payments on the
Class A-1 and Class A-3 Notes;
10) To make a pro rata deposit to a reserve fund
for the Class A-1 and Class A-3 Notes if either
or both are then underfunded;
11) To make a pro rata payment for net mortgage
loan interest shortfalls in payments
on the Class A-1 and Class A-3 Notes;
12) Any remaining excess cashflow to the holders of
the Trust Certificates.
Class A-2 Note
Principal Paydown: All principal collected from Pool B is paid to the
Class A-2 Noteholders
<PAGE>
THIS TERMSHEET SUPERSEDES ANY PREVIOUS TERMSHEETS, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
American Business Financial Services - ABFS Mortgage Loan Trust 1999-4
PRICING INFORMATION
(FLOATING-RATE NOTES)
--------------------------------------
Class: A-3***
Approximate 30,000,000
Face Amount:
Coupon: 1 Month LIBOR + 0.45%
Price: 100-00
Yield: TBD
Spread: 45 bps
Exp Avg Life
to Call: 3.188 yrs
Exp Avg Life
to Maturity: 3.466 yrs
Exp 1st
Prin Pmt: 01/15/2000
Exp Mat
to call: 09/15/2007
Exp Mat: 10/15/2016
Stated Mat: 04/15/2031
Exp Rating
(Moody's/S&P): Aaa/AAA
Pricing Speed: 25% HEP
Pricing Date: 12/01/1999
Investor
Settle Date: 12/22/1999
Cut-off Date 11/30/1999
(Close of Business):
Pmt Delay: 0 days
Dated Date: 12/22/1999
<PAGE>
Int Pmt: Act/360
Pmt Terms: Monthly
1st Int.
Pmt Date: 01/15/2000
Collateral
Type: Fixed-Rate ("Pool C")
SMMEA
Eligibility: Non-SMMEA
Distribution: Public
Settlement: DTC Only
THIS TERMSHEET SUPERSEDES ANY PREVIOUS TERMSHEETS, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
American Business Financial Services - ABFS Mortgage Loan Trust 1999-4
***Class A-3
Coupon Rate: The Class A-3 Coupon Rate at each Payment Date
will be equal to the lesser of:
1) One Month LIBOR + [0.45]% ("LIBOR Rate");
2) Available Funds Cap (less [75 bps] carve
out);
3) Fixed Cap set at [13]%
**Class A-3 Coupon Step-up: Class A-3 is priced to call. If the Servicer
does not exercise the Cleanup Call, the LIBOR
Rate on Class A-3 will equal One Month LIBOR +
(2 x [0.45]%).
Limited Coverage of Interest
to Class A-3 by Note
Insurance Policy: The Note Insurer will insure payment of Class
A-3 interest only up to the Available Funds Cap.
The "Available Funds Cap" is a rate equal to the
weighted average gross coupon rate on the Pool C
Mortgage Loans for such Payment Date less the
Expense Fee Rate and the Credit Spread Rate.
Expense Fee Rate = [0.725]% for servicing fee,
trustee fee and surety fee. Credit Spread Rate =
[0.750]% to provide excess spread for building
overcollateralization and for covering any
losses which may occur.
LIBOR Interest Carryforward: If, on any Payment Date, the amount of interest
(calculated at the LIBOR Rate) due to Class A-3
is limited to the Available Funds Cap, it may be
repaid as set forth below. The excess of (i)
the amount of interest Class A-3 would be
entitled to receive on such Payment Date at the
then applicable LIBOR Rate over (ii) the amount
of accrued interest for such Payment Date at the
Available Funds Cap, together with the unpaid
portion of any such excess from prior Payment
Dates (and interest accrued thereon at the then
applicable LIBOR Rate) is referred to as the
LIBOR Interest Carryforward. Any LIBOR Interest
Carryforward will be carried forward to the next
Payment Date until paid as set forth below. The
LIBOR Interest Carryforward will not be insured
by the FSA guarantee.
If, on any Payment Date, the LIBOR Rate exceeds
the Fixed Cap, the Class A-3 Noteholder will
solely be entitled to interest calculated at the
Fixed Cap.
<PAGE>
Cashflow Priority: 1) Repayment of unreimbursed Servicer advances;
2) Servicing fee;
3) Trustee fee;
4) Surety fee;
5) Repayment of unreimbursed Surety payments;
6) Accrued monthly interest for Class A-3
Noteholder (limited to the Available Funds
Cap);
7) Monthly principal to the Class A-3
Noteholders (as described below);
8) Certain excess cashflow to build
overcollateralization ("O/C") for the
Class A-3 Notes;
9) To make a pro rata payment for certain
shortfalls (except net mortgage loan
interest shortfalls) in payments on the
Class A-1 and Class A-2 Notes;
10) To make a pro rata deposit to a reserve fund
for the Class A-1 and Class A-2
Notes if either or both are then underfunded;
11) To make a pro rata payment for net mortgage
loan interest shortfalls in payments
on the Class A-1 and Class A-2 Notes;
12) To pay any outstanding LIBOR Interest
Carryforward; and
13) Any remaining excess cashflow to the holders
of the Trust Certificates.
Class A-3 Note
Principal Paydown: All principal collected from Pool C is paid to
the Class A-3 Noteholders.
THIS TERMSHEET SUPERSEDES ANY PREVIOUS TERMSHEETS, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
American Business Financial Services - ABFS Mortgage Loan Trust 1999-4
SUMMARY OF TERMS
--------------------------
Title of Securities: ABFS Mortgage Loan Trust 1999-4, Series 1999-4
Class A-1, Class A-2 and Class A-3 (the "Class A
Notes").
Depositor: Prudential Securities Secured Financing Corporation
Servicer: American Business Credit, Inc.
Upland Mortgage and New Jersey Mortgage and Investment
Corp. will act as subservicers.
Originators: American Business Credit, Inc., Home American Credit,
Inc. d/b/a Upland Mortgage and New Jersey Mortgage and
Investment Corp. originated or purchased the Mortgage
Loans.
Trustee: [TBD]
Aggregate
Note Balance: $[220,000,000]
Securities Offered: 100% FSA-guaranteed notes.
Offering: Public shelf offering -- a prospectus and prospectus
supplement will be distributed after pricing.
<PAGE>
Pricing Date: 10/21/1999 for Class A-1
12/01/1999 for Class A-2
12/01/1999 for Class A-3
Investor
Settlement Date: 12/22/1999
Form of Notes: Book-Entry form, same-day funds through DTC, Euroclear
and CEDEL
Coupon: [7.675]% on Class A-1 Notes
[7.200]% on Class A-2 Notes
One Month LIBOR + [0.45]% on Class A-3 Notes*
* Limited to LIBOR Rate and Fixed Cap as described on
previous page
Prepayment
Assumption: 25% HEP (2.5% CPR in month 1 with monthly incremental
increases of 2.5% CPR until the speed reaches 25% CPR in
month 10 based on loan seasoning). This means that
seasoned loans will start further up on the prepayment
curve.
Payment Date: The 15th day of each month (or, if any such date is not
a business day, the first business day thereafter)
commencing in January 2000. The payment delay will be 14
days for the Class A-1 and Class A-2 Notes.
Class A-1 and
Class A-2 Interest
Accrual Period: With respect to any Payment Date, interest on the Class
A-1 and Class A-2 Notes will accrue during the prior
calendar month and will be calculated based on a 360-day
year consisting of twelve 30-day months.
Class A-3 Interest
Accrual Period: With respect to the first Payment Date, interest will
accrue from the Settlement Date to but excluding the
Payment Date in January. In future periods, interest
will accrue on the Class A-3 Notes from the preceding
Payment Date to but excluding the current Payment Date.
Optional
Cleanup Call: The Servicer may call:
1) any class of Class A Notes (in whole but not in
part), on any Payment Date when the aggregate
outstanding principal balance of the respective Note
balance is less than or equal to 10% of its original
principal balance; or
2) the Class A Notes (in whole but not in part) on any
Payment Date when the aggregate outstanding principal
balance of the Class A Notes is less than or equal to
10% of the aggregate original principal balance of
the Class A Notes
THIS TERMSHEET SUPERSEDES ANY PREVIOUS TERMSHEETS, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
American Business Financial Services - ABFS Mortgage Loan Trust 1999-4
Credit Enhancement: 1) 100% wrap from FSA.
2) Overcollateralization.
3) Excess monthly cashflow from Pool A, Pool B and
Pool C.
Note Insurer: Financial Security Assurance Inc. ("FSA").
FSA's claims-paying ability is rated "Aaa" by Moody's
Investors Service and "AAA" by Standard & Poor's.
Note Insurance Policy: The Note Insurance Policy will provide 100% coverage of
timely interest and ultimate principal payments due on
the Class A Notes. The Note Insurance Policy does not
insure the LIBOR Interest Carryforward amount.
<PAGE>
Overcollateralization
and Reserve Account: The credit enhancement provisions of the Trust are
intended to provide for the acceleration of the Class A
Notes relative to the amortization of the related
collateral (i.e., Pool A for the A-1 Notes, Pool B for
the A-2 Notes and Pool C for the A-3 Notes), generally
in the early years of the transaction. Accelerated
amortization is achieved by applying excess interest
collected on the related collateral to the payment of
principal on the related group of Notes, resulting in
the build up of overcollateralization ("O/C"). By paying
down the principal balance of the related group of Notes
faster than the principal amortization of the related
collateral pool, an overcollateralization amount equal
to the excess of the aggregate principal balance of the
related collateral pool over the principal balance of
the related Notes is created. Beginning n the first
payment date, 100% of the excess cashflow available from
the related collateral will be directed to build O/C
until the pool initially reaches its required O/C
target. After each pool initially reaches its required
O/C target, the acceleration feature will cease, unless
it is once again necessary to maintain its required O/C
level. If the required O/C level is not maintained, 100%
of the excess cashflow will be applied to build O/C, as
necessary, to maintain the required O/C level. If any
Pool's O/C target is reached before the O/C target of
any other Pool, 100% of the excess cashflow from the
"satisfied" Pool(s) will be directed to a reserve
account to the extent of any deficiency in the O/C
requirement for the "unsatisfied" Pool(s). After
initially reaching its O/C target, if any Pool's O/C
target is maintained and the other Pool(s) become(s)
deficient in its O/C requirement, 100% of the excess
cashflow from the "satisfied" Pool(s) will be directed
to a reserve account to the extent of any deficiency in
the O/C requirement for the "unsatisfied" Pool(s). If
the sum of the O/C level of the "unsatisfied" Pool(s)
and the amount on deposit in the related Reserve
Account(s) exceeds the O/C target, such excess will be
distributed to the related Trust Certificateholder.
Funds on deposit in the Reserve Account(s) will be used
to pay shortfalls of current interest on or credit
losses related to any Class of Notes, but only to the
extent the O/C level on such Class(es) has been reduced
to zero.
Cross-
Collateralization: The three pools are cross-collateralized to a limited
extent.
Overcollateralization
Levels for Pool A,
Pool B & Pool C
(Approx.): Initial O/C based on original collateral balance: [1.0%]
O/C Target based on outstanding collateral balance:
[5.5%]
These O/C percentages are subject to step-downs
beginning in month [31] if certain tests are met.
Collateral
Information: The collateral information presented herein is a
projection of the expected collateral pool. The actual
collateral will be accumulated before the Settlement
Date to reach Pool A's expected closing pool balance of
$[56,565,656.57], Pool B's expected closing pool balance
of $[50,909,090.91] and Pool C's expected closing pool
balance of $[16,969,696.97]. The characteristics of such
additional collateral are not expected to be materially
different from the collateral information presented
herein.
THIS TERMSHEET SUPERSEDES ANY PREVIOUS TERMSHEETS, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
<PAGE>
American Business Financial Services - ABFS Mortgage Loan Trust 1999-4
Pool A
Pre-funding Account: On the Settlement Date, an aggregate cash amount (the
"Pool A Pre-funded Amount"), which will equal
approximately $[44,444,444.44] will be deposited in the
Pool A Pre- funding Account. During the period ("the
Funding Period") from the Settlement Date until the
earlier of: (i) the date on which the amount in the Pool
A Pre-funding Account is less than $100,000, (ii) the
date on which any Servicer default occurs, or (iii)
[March 31, 2000], the Pool A Pre-funding Amount will
remain in the Pool A Pre-funding Account. The Pool A
Pre-funding Account will be reduced during the Funding
Period by amounts used to purchase subsequent mortgages
in accordance with the Indenture. Any Pool A Pre-funded
Amount remaining at the end of the Funding Period (net
of reinvestment income payable to the Trust
Certificateholders) will be distributed to the Class A-1
Noteholders on the [April 15, 2000] Payment Date as a
partial prepayment of principal on such Class of Notes.
Pool B
Pre-funding Account: On the Settlement Date, an aggregate cash amount (the
"Pool B Pre-funded Amount"), which will equal
approximately $[40,000,000.00] will be deposited in the
Pool B Pre- funding Account. During the period ("the
Funding Period") from the Settlement Date until the
earlier of: (i) the date on which the amount in the Pool
B Pre-funding Account is less than $100,000, (ii) the
date on which any Servicer default occurs, or (iii)
[March 31, 2000], the Pool B Pre-funding Amount will
remain in the Pool B Pre-funding Account. The Pool B
Pre-funding Account will be reduced during the Funding
Period by amounts used to purchase subsequent mortgages
in accordance with the Indenture. Any Pool B Pre-funded
Amount remaining at the end of the Funding Period (net
of reinvestment income payable to the Trust
Certificateholders) will be distributed to the Class A-2
Noteholders on the [April 15, 2000] Payment Date as a
partial prepayment of principal on such Class of Notes.
Pool C
Pre-funding Account: On the Settlement Date, an aggregate cash amount (the
"Pool C Pre-funded Amount"), which will equal
approximately $[13,333,333.33] will be deposited in the
Pool C Pre- funding Account. During the period ("the
Funding Period") from the Settlement Date until the
earlier of: (i) the date on which the amount in the Pool
C Pre-funding Account is less than $100,000, (ii) the
date on which any Servicer default occurs, or (iii)
[March 31, 2000], the Pool C Pre-funding Amount will
remain in the Pool C Pre-funding Account. The Pool C
Pre-funding Account will be reduced during the Funding
Period by amounts used to purchase subsequent mortgages
in accordance with the Indenture. Any Pool C Pre-funded
Amount remaining at the end of the Funding Period (net
of reinvestment income payable to the Trust
Certificateholders) will be distributed to the Class A-3
Noteholders on the [April 15, 2000] Payment Date as a
partial prepayment of principal on such Class of Notes.
Servicing Fee: 50 basis points per annum.
ERISA Considerations: The Class A Notes will be ERISA eligible.
Investors should consult with their counsel with respect
to the consequences under ERISA and the Internal Revenue
Code of a Plan's acquisition and ownership of such
Notes.
Taxation: Class A Notes: Debt for tax. The Notes will be issued by
an Owner Trust.
Legal Investment: None of the Class A Notes will be SMMEA-eligible.
Note Ratings: Moody's: "Aaa" for all Class A Notes.
S&P: "AAA" for all Class A Notes.
Prospectus: The Notes are being offered pursuant to a Prospectus
which includes a Prospectus Supplement (together, the
"Prospectus"). Complete information with respect to the
Notes and the Collateral is contained in the Prospectus.
The foregoing is qualified in its entirety by the
information appearing in the Prospectus. To the extent
that the foregoing is inconsistent with the Prospectus,
the Prospectus shall govern in all respects. Sales of
the Notes may not be consumated unless the purchaser has
received the Prospectus.
Further Information: Trading: Greg Richter, Rob Karr or Jim Regan at
(212) 778-2741,
Banking: Evan Mitnick at (212) 778-7469, Shelby Carvalho
at (212) 778-4127 or Kenny Rosenberg at
(212) 778-2440.
<PAGE>
FSG: Januar Laude at (212) 778-7176, Howard Blecher
at (212) 778-4429 or Jeff Park at
(212) 778-2108.
COPIES OF PROSPECTUS: PLEASE SEND AN E-MAIL WITH CLIENT'S NAME ADDRESS AND
PHONE NUMBER TO KENNY ROSENBERG AT:
E-MAIL: [email protected]
THIS TERMSHEET SUPERSEDES ANY PREVIOUS TERMSHEETS, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
<TABLE>
<S> <C> <C> <C>
CURRENT BALANCE: $30,000,000.00 DATED DATE: 12/22/99
CURRENT COUPON: 1 Month LIBOR + 0.45% ABFS994 FIRST PAYMENT: 01/15/00
FACTOR: 1.0000000000 TOTAL CLASSES: 1
ORIGINAL BALANCE: $30,000,000.00 BOND A3 DISCOUNT MARGIN ACT/360 TABLE YIELD TABLE DATE: 12/22/99
ASSUMED CONSTANT LIBOR-1M 6.4787
***TO CALL***
</TABLE>
15.00% 20.00% 25.00% 30.00% 35.00%
PRICE HEP HEP HEP HEP HEP
99-24 51.361 52.736 54.145 55.568 56.988
99-24+ 50.963 52.251 53.572 54.906 56.237
99-25 50.565 51.767 52.999 54.244 55.486
99-25+ 50.167 51.283 52.427 53.583 54.736
99-26 49.768 50.799 51.855 52.922 53.986
99-26+ 49.370 50.315 51.283 52.261 53.236
99-27 48.973 49.831 50.711 51.600 52.487
99-27+ 48.575 49.347 50.139 50.939 51.737
99-28 48.177 48.864 49.568 50.279 50.988
99-28+ 47.780 48.380 48.996 49.618 50.239
99-29 47.382 47.897 48.425 48.958 49.490
99-29+ 46.985 47.414 47.854 48.298 48.741
99-30 46.588 46.931 47.283 47.638 47.992
99-30+ 46.191 46.448 46.712 46.978 47.244
99-31 45.794 45.965 46.141 46.319 46.496
99-31+ 45.397 45.483 45.570 45.659 45.748
100-00 45.000 45.000 45.000 45.000 45.000
100-00+ 44.603 44.518 44.430 44.341 44.252
100-01 44.207 44.035 43.860 43.682 43.505
100-01+ 43.810 43.553 43.290 43.023 42.758
100-02 43.414 43.071 42.720 42.365 42.011
100-02+ 43.018 42.589 42.150 41.706 41.264
100-03 42.622 42.108 41.581 41.048 40.517
100-03+ 42.226 41.626 41.011 40.390 39.770
100-04 41.830 41.144 40.442 39.732 39.024
100-04+ 41.434 40.663 39.873 39.074 38.278
100-05 41.038 40.182 39.304 38.417 37.532
100-05+ 40.643 39.701 38.735 37.759 36.786
100-06 40.247 39.220 38.166 37.102 36.040
100-06+ 39.852 38.739 37.598 36.445 35.295
100-07 39.456 38.258 37.030 35.788 34.550
100-07+ 39.061 37.777 36.461 35.131 33.805
First Payment 0.064 0.064 0.064 0.064 0.064
Average Life 5.036 3.917 3.188 2.684 2.320
Last Payment 12.397 9.647 7.731 6.397 5.481
Mod.Dur. @ 100-00 3.769 3.099 2.621 2.268 1.999
Accrued Interest 0.000 0.000 0.000 0.000 0.000
<PAGE>
THIS TERMSHEET SUPERSEDES ANY PREVIOUS TERMSHEETS, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.
<PAGE>
American Business Financial Services - ABFS Mortgage Loan Trust 1999-4
EXPECTED COLLATERAL CHARACTERISTICS
- -----------------------------------
Pool A Pool B Pool C
------ ------ ------
Closing Pool Balance $100,000,000 TBD TBD
Avergage Loan Size <$100,000 TBD TBD
Gross WAC 11.70% TBD TBD
WAM (mos) 250 TBD TBD
WA LTV <80% TBD TBD
Balloon Loans <60% TBD TBD
Second Liens <35% TBD TBD
<PAGE>
THIS TERMSHEET SUPERSEDES ANY PREVIOUS TERMSHEETS, AND WILL
BE SUPERSEDED BY THE INFORMATION IN THE PROSPECTUS SUPPLEMENT.
THIS PAGE MUST BE ACCOMPANIED BY A DISCLAIMER. IF YOU DID NOT RECEIVE SUCH A
DISCLAIMER, PLEASE CONTACT YOUR PRUDENTIAL SECURITIES INCORPORATED FINANCIAL
ADVISOR IMMEDIATELY.