<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 18, 1998
------------------------------
NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION
-------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 333-64249 51-0337491
- --------------- ------------------------ --------------------
(State or other (Commission File Number) (I.R.S. Employer
Jurisdiction of Identification No.)
Incorporation)
Navistar Financial Retail Receivables Corporation
2850 W. Golf Road
Rolling Meadows, IL 60008
- -------------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (847) 734-4000
Former name or former address, if changed since last report: Not applicable
Exhibit Index appears on Page 4
1
<PAGE>
Item 5. Other Events
------------
Series 1998-A. On May 18, 1998, the registrant made available to
prospective investors a series term sheet setting forth a description of the
collateral pool and the proposed structure of $500,864,370.04 aggregate
principal amount of Series 1998-A Asset Backed Notes, Class A and Class B, of
Navistar Financial 1998-A Owner Trust. The series term sheet is attached hereto
as Exhibit 99.
Item 7. Financial Statements, Pro Forma Financial Statements and Exhibits
-----------------------------------------------------------------
Exhibit No. Description
- ----------- -----------
Exhibit 99 Series Term Sheet dated May 18, 1998 with respect to the proposed
issuance of the Asset Backed Notes, Class A and Class B, of
Navistar Financial 1998-A Owner Trust.
2
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
as amended, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
NAVISTAR FINANCIAL RETAIL RECEIVABLES
CORPORATION
(Registrant)
Dated: May 20, 1998 By: /s/ R. Wayne Cain
-----------------------------------
Its: Vice President and Treasurer
3
<PAGE>
INDEX OF EXHIBITS
-----------------
<TABLE>
<CAPTION>
Sequentially
Exhibit Number Exhibit Numbered Page
- -------------- -------------------------------------- -------------
<C> <S> <C>
Exhibit 99 Series Term Sheet dated May 18, 1998, 5
with respect to the proposed issuance
of the Asset Backed Notes, Class A and
Class B, of Navistar Financial 1998-A
Owner Trust.
</TABLE>
4
<PAGE>
Navistar Financial 1998-A Owner Trust
Navistar Financial Retail Receivables Corporation
Seller
Navistar Financial Corporation
Servicer
Subject to Revision
Term Sheet Dated May 18, 1998
Underwriters of the Class A Notes
Chase Securities Inc.
BancAmerica Robertson Stephens
First Chicago Capital Markets, Inc.
NationsBanc Montgomery Securities LLC
Underwriter of the Class B Notes
Chase Securities Inc.
<PAGE>
PROCEEDS OF THE ASSETS OF THE TRUST AND AMOUNTS ON DEPOSIT IN THE RESERVE
ACCOUNT ARE THE SOLE SOURCES OF PAYMENTS ON THE NOTES. NONE OF THE NOTES
REPRESENTS AN INTEREST IN OR OBLIGATION OF, OR IS INSURED OR GUARANTEED BY,
NAVISTAR FINANCIAL CORPORATION, NAVISTAR FINANCIAL RETAIL RECEIVABLES
CORPORATION OR ANY OF THEIR RESPECTIVE AFFILIATES.
THIS TERM SHEET CONTAINS STRUCTURAL AND COLLATERAL INFORMATION WITH RESPECT TO
THE NAVISTAR FINANCIAL 1998-A OWNER TRUST. THE INFORMATION CONTAINED IN THIS
TERM SHEET IS PRELIMINARY AND WILL BE SUPERSEDED IN ITS ENTIRETY BY THE
INFORMATION APPEARING IN THE PROSPECTUS SUPPLEMENT RELATING TO THE NAVISTAR
FINANCIAL 1998-A OWNER TRUST (THE "PROSPECTUS SUPPLEMENT") AND THE RELATED
PROSPECTUS (THE "PROSPECTUS"). THE INFORMATION CONTAINED IN THIS TERM SHEET
ADDRESSES ONLY CERTAIN LIMITED ASPECTS OF THE NOTES' CHARACTERISTICS, AND DOES
NOT PURPORT TO PROVIDE A COMPLETE ASSESSMENT THEREOF. THE INFORMATION CONTAINED
HEREIN THEREFORE MAY NOT REFLECT THE IMPACT OF ALL STRUCTURAL CHARACTERISTICS OF
THE NOTES OR ANY CHANGES MADE TO THE STRUCTURE OF THE NOTES AFTER THE DATE
HEREOF. ADDITIONAL INFORMATION WILL BE CONTAINED IN THE PROSPECTUS SUPPLEMENT
AND THE PROSPECTUS. PURCHASERS ARE URGED TO READ BOTH THE PROSPECTUS SUPPLEMENT
AND THE PROSPECTUS.
ALTHOUGH A REGISTRATION STATEMENT (INCLUDING THE PROSPECTUS) RELATING TO THE
NOTES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AND IS
EFFECTIVE, THE PROSPECTUS SUPPLEMENT HAS NOT BEEN FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION. SALES OF THE NOTES MAY NOT BE CONSUMMATED UNLESS THE
PURCHASER HAS RECEIVED BOTH THE PROSPECTUS SUPPLEMENT AND THE PROSPECTUS. THIS
TERM SHEET SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER
TO BUY NOR SHALL THERE BE ANY SALE OF THE NOTES IN ANY STATE OR OTHER
JURISDICTION IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR
TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES OR OTHER APPLICABLE LAWS
OF ANY SUCH STATE OR OTHER JURISDICTION. THE NOTES HAVE NOT BEEN APPROVED OR
DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION.
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<PAGE>
$500,864,370.04 Asset Backed Notes
Navistar Financial 1998-A Owner Trust
Navistar Financial Retail Receivables Corporation
Seller
Navistar Financial Corporation
Servicer
Subject to Revision
Term Sheet Dated May 18, 1998
This Term Sheet will be superseded in its entirety by the information appearing
in the Prospectus Supplement and the Prospectus. Capitalized terms used but not
defined herein shall have the meanings specified in the Prospectus Supplement
and the Prospectus. A final Prospectus and Prospectus Supplement may be
obtained by contacting Joy Dunphy at (212) 834-4533.
Issuer................Navistar Financial 1998-A Owner Trust, a Delaware business
trust to be formed by the Seller and the Owner Trustee
pursuant to the Owner Trust Agreement.
Seller................Navistar Financial Retail Receivables Corporation.
Servicer..............Navistar Financial Corporation.
Indenture Trustee.....The Bank of New York, as trustee under the Indenture.
Owner Trustee.........Chase Manhattan Bank Delaware, as owner trustee under the
Owner Trust Agreement.
The Notes.............The Trust will issue Notes as follows:
Class A ____% Asset Backed Notes in the aggregate
principal amount of $483,334,000 (the "Class A Notes").
Class B ____% Asset Backed Notes in the aggregate
principal amount of $17,530,370.04 (the "Class B Notes";
together with the Class A Notes").
The Class B Notes will be subordinated to the Class A
Notes to the extent described herein and in the Prospectus
Supplement.
The Trust will also issue Certificates (the
"Certificates"), which will not bear interest but will
have certain rights in excess monies in the Reserve
Account and certain other excess funds, that will
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<PAGE>
initially be held by the Seller, the Servicer and/or one
of their affiliates.
The Trust Property.... The Trust Property will include a pool of Retail Notes
(the "Receivables"), certain monies due or received
thereunder on and after May 1, 1998 (the "Cutoff Date"),
security interests in the vehicles financed thereby,
certain accounts (including the Reserve Account) and the
proceeds thereof, the proceeds, if any, of Dealer
Liability, NITC Purchase Obligations and any Guaranties,
any proceeds from claims on certain insurance policies,
the benefits of any lease assignments and certain rights
of the Seller under the related Purchase Agreement and
the related Custodian Agreement. The Initial Aggregate
Receivables Balance is $500,864,370.04.
Terms of the Notes: The principal terms of the Notes will be as described
below:
A. Interest.... Class A Notes: ____%
Class B Notes: ____%
Interest on the Notes will accrue at the applicable
Interest Rate from the Closing Date or the most recent
Distribution Date on which interest has been paid to but
excluding the next Distribution Date, and will generally
be payable monthly on the 15th day of each month, or, if
any such day is not a business day, on the next
succeeding business day, commencing on June 15, 1998
(each, a "Distribution Date"). Interest on the Notes
will be calculated on the basis of a 360-day year
consisting of twelve 30-day months.
Interest on the Class B Notes will not be paid on any
Distribution Date until all accrued interest due and
payable on the Class A Notes on such Distribution Date
has been paid in full. Under certain circumstances,
after an Event of Default and acceleration of the Notes,
no interest will be payable on the Class B Notes until
all principal of and interest on the Class A Notes has
been paid in full.
B. Principal... Subject to the subordination provisions described in the
following two paragraphs, principal of the Class A Notes
and the Class B Notes will be payable on each
Distribution Date in an amount equal to 96.5% and 3.5%,
respectively, of the Principal Payment Amount for such
Distribution Date. The "Principal Payment Amount" for
each Distribution Date will generally equal the lesser
of (x) the Principal Distributable Amount for such
Distribution Date and (y) the excess, if any, of the sum
of the Available Amount for such Distribution Date and
available funds on deposit
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<PAGE>
in the Reserve Account on such Distribution Date (the
"Total Available Amount") over the sum of the Total
Servicing Fee and accrued and unpaid interest on the
Notes due and payable on such Distribution Date. For a
Distribution Date, the "Principal Distributable Amount"
generally will equal the sum, with respect to the
related Monthly Period, of the principal portion of all
payments due on the Receivables, the principal portion
of all prepayments received in respect of the
Receivables, the principal portion of all Receivables
repurchased by the Seller or purchased by the Servicer
and the principal portion of all Receivables that became
Liquidating Receivables, and the "Available Amount"
generally will equal (a) the sum, with respect to the
related Monthly Period, of (i) that portion of all
collections on the Receivables allocable to principal,
interest or Prepayment Surplus, (ii) all Liquidation
Proceeds to the extent attributable to principal or
interest in accordance with the Servicer's customary
procedures, (iii) that portion of all Monthly Advances
made by the Servicer allocable to principal or interest
due on the Receivables, (iv) the Warranty Payment, the
Administrative Purchase Payment or the Optional Purchase
Proceeds of each Receivable that the Seller repurchased
or the Servicer purchased during such related Monthly
Period to the extent attributable to principal, accrued
interest or Prepayment Surplus thereon and (v) the
principal portion of all Prepayments minus (b) that
portion of collections retained by the Servicer in
respect of unreimbursed Monthly Advances and Liquidation
Expenses.
If the amount on deposit in the Reserve Account on any
Distribution Date would be, after giving effect to the
distribution of the Principal Payment Amount, less than
1.0% of the Initial Aggregate Receivables Balance, then
the principal of the Class A Notes will be payable in an
amount equal to 100% of the Principal Payment Amount and
no principal of the Class B Notes will be paid on any
Distribution Date thereafter until either the Class A
Notes are paid in full or the amount on deposit in the
Reserve Account equals or exceeds the Specified Reserve
Account Balance.
Also, if an Event of Default occurs and the Notes are
declared immediately due and payable, the principal of
the Class A Notes will be payable in an amount equal to
100% of the Principal Payment Amount and no principal of
the Class B Notes will be paid on any Distribution Date
thereafter until the Class A Notes are paid in full.
Thereafter, the principal of the Class B Notes will be
payable in an amount equal to 100% of the Principal
Payment
-5-
<PAGE>
Amount on each Distribution Date until the Class B Notes
are repaid in full.
The Notes will be payable in full on November 15, 2004
(the "Final Scheduled Distribution Date") (although the
actual payment in full of the Notes could occur sooner).
C. Redemption....... If the Servicer exercises its option to purchase the
Receivables on any Distribution Date on or after the
date on which the Aggregate Receivables Balance declines
to 10% or less of the Initial Aggregate Receivables
Balance, the holders of the Notes will be redeemed in
whole, but not in part, at a redemption price equal to
the unpaid principal amount of such Notes, plus accrued
and unpaid interest thereon.
D. Voting Rights... To the extent the Prospectus specifies certain
circumstances under which the consent, approval,
direction, or request of a specified percentage in
principal amount of the outstanding Notes must be
obtained, given or made, or under which such a specified
percentage are permitted to take an action or give a
notice, then such consent, approval, direction, request,
action or notice shall be valid only if the holders of
such specified percentage in principal amount of (a) all
the outstanding Class A Notes and Class B Notes voting
together as a single class and (b) the outstanding Class
A Notes voting as a single class have voted to give such
consent, approval, direction, request or notice, or take
such action.
Priority of
Distributions........ Distributions of the Total Available Amount to the
Noteholders and the Servicer will generally be
distributed in the following order of priority on each
Distribution Date: (i) the Servicing Fee and any unpaid
Servicing Fee for prior Distribution Dates ("Total
Servicing Fee"); (ii) interest on the Class A Notes;
(iii) interest on the Class B Notes; and (iv) principal
on the Notes as described above. Under certain
circumstances, after the occurrence of an Event of
Default and the acceleration of the Notes, all principal
and interest on the Class A Notes will be paid in full
prior to making any further payments on or with respect
to the Class B Notes.
Reserve Account....... On the Closing Date an amount of cash or eligible
investments equal to 3.50% of the Initial Aggregate
Receivables Balance will be deposited into the Reserve
Account. The Reserve Account will be increased on each
Distribution Date by the deposit in the Reserve Account
of amounts remaining after payment to the
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<PAGE>
Servicer of the Total Servicing Fee and deposits to the
Distribution Account of amounts to be distributed to
Noteholders.
Amounts in the Reserve Account on any Distribution Date
(after giving effect to all distributions to be made to
the Servicer and the Noteholders on such Distribution
Date) in excess of the Specified Reserve Account Balance
for such Distribution Date will be paid to the holders
of the Certificates. The Specified Reserve Account
Balance on each Distribution Date will equal the lesser
of (i) the aggregate outstanding principal balance of
the Notes and (ii) the greater of (x) 5.25% (or 10.0%
under certain circumstances described in the Prospectus
Supplement) of the Aggregate Receivables Balance as of
the close of business on the last day of the related
Monthly Period, and (y) 2.0% of the Initial Aggregate
Receivables Balance.
Funds will be withdrawn from cash in the Reserve Account
on the day preceding each Distribution Date to the
extent that the Available Amount (after payment of the
Total Servicing Fee) is less than amounts payable on the
Notes.
Tax Status............ In the opinion of Kirkland & Ellis, federal tax counsel,
for federal income tax purposes, the Notes will be
characterized as indebtedness and the Trust will not be
characterized as an association (or publicly traded
partnership) taxable as a corporation. Each Noteholder
by the acceptance of a Note will agree to treat the
Notes as indebtedness.
ERISA Considerations.. Although there is little guidance on the subject, the
Seller believes the Notes should be treated as
indebtedness without substantial equity features for the
purposes of the Plan Assets Regulation. Therefore, the
Notes are available for investment by a Benefit Plan,
subject to a determination by such Benefit Plan's
fiduciary that the Notes are suitable investments for
such Benefit Plan under ERISA and the Internal Revenue
Code.
Ratings............... It is a condition to the issuance of the Notes that the
Class A Notes be rated in the highest rating category
for long-term debt obligations, and the Class B Notes be
rated in the "A" category or its equivalent, in each
case, by at least one nationally recognized rating
agency.
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<PAGE>
THE RECEIVABLES POOL
The Receivables were originally acquired by Navistar Financial Corporation
("NFC") from (i) Navistar International Transportation Corp. ("NITC") dealers,
(ii) other dealers, including those selling other manufacturers' vehicles and
equipment and (iii) retail customers. Certain of the Receivables were sold by
NFC to Truck Retail Instalment Paper Corp. ("TRIP"), a special purpose, wholly
owned subsidiary of NFC, and will be repurchased by NFC from TRIP as of the
Closing Date for resale to the Seller. The Receivables were selected randomly
for inclusion in the Receivables Pool from those Retail Notes in NFC's portfolio
of owned Retail Notes which satisfied several criteria, including that each
Receivable (i) has a first payment due date on or before May 31, 1998, (ii) has
an original term to maturity of 12 to 84 months and a remaining term to maturity
of 12 to 73 months, (iii) provides for finance charges at an APR of no less than
7.00%, (iv) as of the Cutoff Date, was not more than 60 days past due and (v)
satisfies the other criteria set forth in the Prospectus under the caption "The
Receivables Pools."
The composition, distribution by annual percentage rate, distribution by
remaining maturity, distribution by payment terms and geographic distribution of
the Receivables Pool are as set forth in the following tables. Due to rounding,
the percentages shown in these tables may not add to 100.00%.
Composition of the Receivables Pool
<TABLE>
<CAPTION>
Weighted Weighted
Weighted Average Initial Aggregate Average Average Average
Annual Percentage Aggregate Original Number of Initial Original Remaining
Rate of Receivables Receivables Principal Receivables Receivable Maturity Maturity
(Range) Balance Balance in Pool Balance (Range) (Range)
- ------------------- ----------- ---------- ----------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
9.581% $500,864,370.04 $543,788,034.45 11,591 $43,211.49 54.13 50.39
(7.00%-22.50%)(1) months months
(12 to 84 (12 to 73
months) months)
</TABLE>
- --------------------
(1) Excludes two Receivables with APRs above 22.50%.
-8-
<PAGE>
Distribution by Annual Percentage Rate of the Receivables Pool
<TABLE>
<CAPTION>
Percentage of
Annual Percentage Number of Initial Initial Aggregate
Rate Range Receivables Receivables Balance Receivables Balance
- ----------------- ----------- ------------------- -------------------
<S> <C> <C> <C>
7.00- 8.49% 3,769 $180,527,263.09 36.04%
8.50- 9.49% 2,480 112,630,140.49 22.49%
9.50-10.49% 1,787 84,162,157.43 16.80%
10.50-11.49% 1,082 49,317,843.91 9.85%
11.50-12.49% 749 28,764,480.79 5.74%
12.50-13.49% 574 19,034,386.28 3.80%
13.50-14.49% 442 11,261,902.74 2.25%
14.50-15.49% 296 6,888,913.43 1.38%
15.50-16.49% 217 4,516,385.49 0.90%
16.50-17.49% 62 1,233,425.63 0.25%
17.50% & Over.... 133 2,527,470.76 0.50%
Total 11,591 $500,864,370.04 100.00%
</TABLE>
Distribution by Remaining Maturity of the Receivables Pool
<TABLE>
<CAPTION>
Remaining Percentage of
Maturity Number of Initial Initial Aggregate
(Months) Receivables Receivables Balance Receivables Balance
- ----------------- ----------- ------------------- -------------------
<S> <C> <C> <C>
1-12 229 $ 3,598,662.81 0.72%
13-24 1,139 20,141,718.95 4.02%
25-36 2,286 65,895,371.84 13.16%
37-48 2,639 118,946,415.24 23.75%
49-60 4,215 239,836,007.85 47.88%
61-66 86 4,833,303.07 0.96%
67 & Over 997 47,612,890.28 9.51%
Total 11,591 $500,864,370.04 100.00%
</TABLE>
Distribution by Payment Terms of Receivables
<TABLE>
<CAPTION>
Percentage of
Initial Aggregate
Type of Receivable Receivables Balance
- -------------------------------- -------------------
<S> <C>
Equal Payment Fully Amortizing 61.52%
Equal Payment Balloon 13.46%
Equal Payment Skip 2.84%
Level Principal Fully Amortizing 5.62%
Level Principal Balloon 10.28%
Level Principal Skip 0.22%
Other 6.06%
Total 100.00%
</TABLE>
The Receivables Pool includes Receivables originated in 48 states and The
District of Columbia. The following table sets forth the percentage of the
Initial Aggregate Receivables Balance in the
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<PAGE>
states with the largest concentration of Receivables. No other state accounts
for more than 2.80% of the Initial Aggregate Receivables Balance. None of the
Receivables were originated in Alaska or Hawaii.
Geographic Distribution of the Receivables Pool
<TABLE>
<CAPTION>
Percentage of Initial
Aggregate Receivables
State(1) Balance
- ---------------------- ----------------------
<S> <C>
Texas 8.43%
Ohio 8.27%
New York 6.00%
Arkansas 5.80%
California 5.66%
Illinois 5.55%
Florida 4.68%
Tennessee 3.89%
Indiana 3.41%
Minnesota 3.20%
Other 45.11%
Total 100.00%
</TABLE>
- --------------
(1) Based on billing addresses of the obligors on the Receivables.
No single obligor accounts for more than 2.00% of the Initial Aggregate
Receivables Balance. As of the Cutoff Date, approximately 75.10% of the Initial
Aggregate Receivables Balance, constituting 62.42% of the aggregate number of
Receivables, represent Receivables secured by new vehicles. The remainder are
secured by used vehicles.
THE SERVICER
Delinquencies, Repossessions and Net Losses
Set forth below is certain information concerning NFC's experience in the
United States pertaining to delinquencies, repossessions and net losses on its
entire portfolio of Retail Notes (including Retail Notes previously sold which
NFC continues to service). Fluctuations in retail delinquencies, repossessions
and losses generally follow cycles in the overall business environment. Although
NFC believes retail delinquencies, repossessions and net losses are particularly
sensitive to the industrial sector, which generates a significant portion of the
freight tonnage hauled, NFC does not track such data and is unable to ascertain
the specific causes of such fluctuations. Due to the bankruptcy of one of NFC's
largest obligors, net losses for 1996 were higher than those reported for the
other years shown. Due to economic conditions affecting the trucking industry
generally, delinquencies and repossessions for 1996, 1997 and the first six
months of 1998 were higher than reported for 1994 and 1995. Also, NFC's recent
experience is that competitive conditions are causing it increasingly to waive
Dealer Liability when acquiring Retail Notes, and the extent and terms of Dealer
Liability will continue to be subject to change as market conditions require. As
of April 30, 1998, approximately 26% of the aggregate principal amount of Retail
Notes serviced by
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<PAGE>
NFC had the benefit of Dealer Liability. The Prospectus sets forth an
explanation of the extent, terms and effect of Dealer Liability and the bases on
which the delinquency, repossession and net loss numbers set forth below have
been calculated. See "The Servicer--Delinquencies, Repossessions and Net Losses"
in the Prospectus. There can be no assurance that the delinquency, repossession
and net loss experience on the Receivables Pool will be comparable to that set
forth below. Due to rounding, the amounts shown for NFC and NITC separately in
this table may not add to the amount shown for NFC and NITC combined.
<TABLE>
<CAPTION>
Six Months
Year Ended October 31, Ended April 30,
----------------------------------------------------------------
NFC Retail Notes 1993 1994 1995 1996(1) 1997 1997 1998
- ---------------- ---- ---- ---- ---- ---- ---- ----
($ in millions)
<S> <C> <C> <C> <C> <C> <C> <C>
Gross Balance Outstanding at end of
Period................................ $ 1,437 $1,653 $2,073 $2,282 $2,282 $2,216 $2,319
Gross Balance Past Due as a
Percentage of Gross Balance
Outstanding at end of Period
31-60 days......................... 0.67% 0.41% 2.43% 1.99% 2.42% 3.33% 2.67%
over 60 days....................... 0.09% 0.06% 0.09% 0.30% 0.60% 0.73% 0.67%
Average Gross Balance of Retail
Notes (13 month average).............. $ 1,341 $1,515 $1,809 $2,204 $2,245 $2,242 $2,268
Net Losses (recoveries):
NFC................................ $ (0.1) $ 0.6 $ 0.3 $ 5.0 $ 2.1 $ 0.8 $ 1.3
NITC............................... 4.8 0.6 0.6 9.5 3.9 2.3 2.3
----------------------------------------------------------------
Combined........................... $ 4.7 $ 1.2 $ 0.9 $ 14.5 $ 6.0 $ 3.1 $ 3.6
Liquidations minus Net Losses........... $ 713 $ 790 $ 833 $1,002 $1,083 $ 539 $ 591
Net Losses (recoveries) as a
Percentage of Liquidations
minus Net Losses:
NFC................................ (0.01)% 0.08% 0.04% 0.50% 0.19% 0.14% 0.22%
NITC............................... 0.67% 0.07% 0.07% 0.95% 0.36% 0.43% 0.39%
----------------------------------------------------------------
Combined........................... 0.66% 0.15% 0.11% 1.45% 0.55% 0.57% 0.61%
Net Losses (recoveries) as a
Percentage of Average Gross
Balance (2):
NFC................................ 0.00% 0.04% 0.02% 0.23% 0.09% 0.07% 0.11%
NITC............................... 0.35% 0.04% 0.03% 0.43% 0.18% 0.21% 0.20%
----------------------------------------------------------------
Combined........................... 0.35% 0.08% 0.05% 0.66% 0.27% 0.28% 0.31%
Repossessions as a Percentage of
Average Gross Balance (2)............. 1.95% 0.97% 0.92% 3.15% 2.01% 2.01% 2.19%
</TABLE>
- --------
(1) The information presented herein for the year ended October 31, 1996
includes the effect of the bankruptcy of one of NFC's largest obligors,
with obligations under Retail Notes covering approximately 720 vehicles. As
adjusted to eliminate the impact of that obligor's bankruptcy, the Combined
Net Losses, Combined Net Losses as a Percentage of Liquidations minus Net
Losses, Combined Net Losses as a Percentage of Average Gross Balance and
Repossessions as a Percentage of Average Gross Balance for the year ended
October 31, 1996 would have been $4.0 million, 0.39%, 0.18% and 1.64%,
respectively.
(2) April 30 figures have been annualized.
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