<PAGE>
EXHIBIT 99
Navistar Financial 2000-B Owner Trust
Navistar Financial Retail Receivables Corporation
Seller
Navistar Financial Corporation
Servicer
Subject to Revision
Term Sheet Dated October 17, 2000
Joint Lead Managers of the Class A Notes
Banc of America Securities LLC Salomon Smith Barney
(Bookrunner)
Co-Managers of the Class A Notes
Banc One Capital Markets, Inc. Chase Securities Inc.
Underwriter of the Class B Notes
Banc of America Securities LLC
<PAGE>
THE SOLE SOURCE OF PAYMENTS ON THE NOTES WILL BE THE TRUST PROPERTY. THE NOTES
ARE NOT INTERESTS IN, OBLIGATIONS OF, OR INSURED OR GUARANTEED BY THE OWNER
TRUSTEE, NAVISTAR FINANCIAL CORPORATION, NAVISTAR FINANCIAL RETAIL RECEIVABLES
CORPORATION OR ANY OTHER PERSON OR ENTITY.
THIS TERM SHEET CONTAINS STRUCTURAL AND COLLATERAL INFORMATION WITH RESPECT TO
THE NAVISTAR FINANCIAL 2000-B 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TERM SHEET IS PRELIMINARY AND WILL BE SUPERSEDED IN ITS ENTIRETY BY THE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 2000-B 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. PROSPECTIVE PURCHASERS ARE URGED TO READ BOTH THE PROSPECTUS
SUPPLEMENT AND THE PROSPECTUS.
ALTHOUGH A REGISTRATION STATEMENT (INCLUDING THE PROSPECTUS) RELATING TO ASSET
BACKED NOTES AND CERTIFICATES ISSUED BY TRUSTS FORMED BY THE SELLER HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AND IS EFFECTIVE, AS OF THE
DATE OF THIS TERM SHEET THE PROSPECTUS SUPPLEMENT RELATING TO THE NOTES 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 ACT 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.
-2-
<PAGE>
$764,710,097.53 Asset Backed Notes
Navistar Financial 2000-B Owner Trust
Navistar Financial Retail Receivables Corporation
Seller
Navistar Financial Corporation
Servicer
Subject to Revision
Term Sheet Dated October 17, 2000
This Term Sheet will be superseded in its entirety by the information appearing
in the Prospectus Supplement relating to the Notes and the Prospectus.
Capitalized terms used but not defined herein shall have the meanings specified
in the Prospectus. A final Prospectus and Prospectus Supplement may be obtained
by contacting your sales representative.
Issuer ................ Navistar Financial 2000-B Owner Trust (the "Trust"), a
Delaware common law trust to be formed by the Seller
and the Owner Trustee pursuant to the Owner Trust
Agreement, acting by and through the Owner Trustee.
Seller ................ Navistar Financial Retail Receivables Corporation.
Servicer .............. Navistar Financial Corporation.
Indenture Trustee ..... The Bank of New York, as indenture trustee under the
Indenture.
Owner Trustee ......... Chase Manhattan Bank USA, National Association, as
owner trustee under the Owner Trust Agreement.
The Notes ............. The Trust will issue Notes as follows:
Class A-1 % Asset Backed Notes in the aggregate
principal amount of $140,000,000.00 (the "Class A-1
Notes").
Class A-2 % Asset Backed Notes in the aggregate
principal amount of $232,400,000.00 (the "Class A-2
Notes").
Class A-3 % Asset Backed Notes in the aggregate
principal amount of $184,900,000.00 (the "Class A-3
Notes").
-3-
<PAGE>
Class A-4 % Asset Backed Notes in the aggregate
principal amount of $178,733,000.00 (the "Class A-4
Notes"; together with the Class A-1 Notes, the Class A-
2 Notes and the Class A-3 Notes, the "Class A Notes").
Class B % Asset Backed Notes in the aggregate
principal amount of $28,677,097.53 (the "Class B
Notes"; together with the Class A Notes, the "Notes").
The Class B Notes will be subordinated to the Class A
Notes to the extent described in this Term Sheet and in
the Prospectus Supplement.
The sole source of payments on the Notes will be the
Trust Property. The Notes are not interests in,
obligations of, or insured or guaranteed by the Owner
Trustee, the Seller, the Servicer or any other person
or entity.
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. The
Certificates will initially be held by the Seller or
one of its affiliates.
The Trust Property .... The Trust Property will include a pool of Retail Notes
(the "Receivables"), certain monies due and received
thereunder on and after October 1, 2000 (the "Cutoff
Date"), security interests in the vehicles financed
thereby, certain other property and monies on deposit
in certain accounts, including the Reserve Account, and
the proceeds thereof, any proceeds of the obligation,
if any, of a dealer to pay a portion of the principal
balance of a defaulted Retail Note in connection with a
repossessed vehicle, the obligation, if any, of
International Truck and Engine Corporation
("International") (f/k/a Navistar International
Transportation Corporation) to purchase a repossessed
vehicle under specified circumstances and any
Guaranties, any proceeds from claims on specified
insurance policies, the benefits of any lease
assignments and specified rights of the Seller under
the related Purchase Agreement and the related
Custodian Agreement. The Initial Aggregate Receivables
Balance is $764,710,097.53.
-4-
<PAGE>
Terms of the Notes: The principal terms of the Notes will be as described
below:
A. Interest ........ Class A-1 Notes: %
Class A-2 Notes: %
Class A-3 Notes: %
Class A-4 Notes: %
Class B Notes: %
Interest on the Notes will accrue at the applicable
Interest Rate from and including 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 the 15th day is not a business
day, on the next business day, starting on November 15,
2000 (each, a "Distribution Date"). Interest on the
Class A-1 Notes will be calculated on the basis of the
actual number of days elapsed since the Closing Date or
the preceding Distribution Date divided by 360.
Interest on the Class A-2 Notes, the Class A-3 Notes,
the Class A-4 Notes and the Class B Notes will be
calculated on the basis of a 360-day year consisting of
twelve 30-day months.
Interest payments to all classes of the Class A Notes
will have the same priority while 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.
After the Notes are declared to be due and payable
following the occurrence of an Event of Default
resulting from the failure to make a payment on 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 two following paragraphs, on each Distribution
Date, the Notes will be payable to the extent of the
Principal Payment Amount as follows: (1) first, 100% of
the Principal Payment Amount to the Class A-1 Notes
until the Class A-1 Notes are paid in full; (2)
thereafter, 96.25% of the Principal Payment Amount (in
the case of the Distribution Date on which the Class A-
1 Notes are paid in full, 96.25% of the remaining
Principal Payment Amount) to the Class A Notes (all of
which shall be paid to the Class A-2 Notes until paid
in full, then to the Class A-3 Notes until paid in
full, and then to the Class A-4 Notes until paid in
full) and 3.75% of the Principal Payment Amount (in the
case of the Distribution Date on which the Class A-1
Notes are paid in full, 3.75% of the remaining
Principal Payment Amount) to the Class B Notes until
the Class A Notes are paid in full; and (3) thereafter,
100% of the Principal
-5-
<PAGE>
Payment Amount (in the case of the Distribution Date on
which the Class A Notes are paid in full, the remaining
Principal Payment Amount) to the Class B Notes until
the Class B Notes are paid in full. The "Principal
Payment Amount" for each Distribution Date will
generally equal the lesser of (a) the Principal
Distributable Amount for such Distribution Date and (b)
the excess, if any, of the sum of the Available Amount
for such Distribution Date and available funds on
deposit 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 (1) that portion of
all collections on the Receivables allocable to
principal, interest or Prepayment Surplus, (2) all
Liquidation Proceeds to the extent attributable to
principal or interest in accordance with the Servicer's
customary procedures, (3) that portion of all Monthly
Advances made by the Servicer allocable to principal or
interest due on the Receivables, (4) 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 (5) 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, after giving effect to the
distribution of the Principal Payment Amount in
accordance with the priorities set forth above, would
be less than 1.0% of the Initial Aggregate Receivables
Balance, then the Class A Notes will receive 100% of
the Principal Payment Amount (all of which shall be
paid to the Class A-1 Notes until paid in full, then to
the Class A-2 Notes until paid in full, then to the
Class A-3 Notes until paid in full, and then to the
Class A-4 Notes until paid in full) 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
-6-
<PAGE>
Balance. When principal payments on the Class B Notes
resume in accordance with the preceding sentence, the
Principal Payment Amount shall be distributed in
accordance with the first sentence in the preceding
paragraph.
Also, if an Event of Default occurs whether due to a
failure to make a payment on the Notes or otherwise and
the Notes are declared to be 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 each class of Class A Notes will be entitled to
ratable repayment of principal on the basis of their
respective unpaid principal balances) 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 Amount on each Distribution Date
until the Class B Notes are paid in full.
Each class of Notes will be payable in full on the
applicable Distribution Date in the calendar month set
forth below (the "Final Scheduled Distribution Date")
(however, the actual payment in full of any class of
Notes could occur sooner):
Class A-1 Notes: November 2001
Class A-2 Notes: October 2003
Class A-3 Notes: November 2004
Class A-4 Notes: September 2007
Class B Notes: September 2007
C. Redemption ...... If the Aggregate Receivables Balance declines to 10% or
less of the Initial Aggregate Receivables Balance and
the Servicer exercises its option to purchase the
Receivables on any Distribution Date on or after the
date on which the Class A-1 Notes, the Class A-2 Notes
and the Class A-3 Notes have been paid in full, the
Class A-4 Notes and the Class B Notes will be redeemed
in whole, but not in part, at a redemption price equal
to the unpaid principal amount of those 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
-7-
<PAGE>
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:
(1) the Basic Servicing Fee and any unpaid
Basic Servicing Fee for prior Distribution
Dates ("Total Servicing Fee"); (2) interest
on the Class A Notes; (3) interest on the
Class B Notes; and (4) principal on the Notes
as described above. After the Notes are
declared to be due and payable following the
occurrence of an Event of Default resulting
from the failure to make a payment on 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 $36,323,729.63
or 4.75% of the Initial Aggregate Receivables
Balance will be deposited into the Reserve
Account. On each Distribution Date, amounts
remaining after payment to the Servicer of
the Total Servicing Fee and deposits to the
Distribution Account of amounts to be
distributed to Noteholders will be deposited
into the Reserve Account.
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
(1) the aggregate outstanding principal
balance of the Notes and (2) the greater of
(a) 5.50% (or 10.00% under specified
circumstances to be 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 (b) 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 is less than the sum of
amounts payable on the Notes and the Total
Servicing Fee.
Tax Status ...................... In the opinion of Kirkland & Ellis, special
tax counsel, for federal income tax purposes,
the Notes will be characterized as
indebtedness and the Trust will not be
characterized as an
-8-
<PAGE>
association (or a publicly traded partnership)
taxable as a corporation. Each Noteholder by the
acceptance of a Note will be deemed to 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.
Legal Investment ........... The Class A-1 Notes will be eligible securities
for purchase by money market funds under Rule 2a-7
under the Investment Company Act of 1940, as
amended.
Ratings .................... It is a condition to the issuance of the Notes
that the Class A-1 Notes be rated in the highest
rating category for short-term debt obligations by
at least two nationally recognized rating
agencies, the Class A-2, Class A-3 and Class A-4
Notes be rated in the highest rating category for
long-term debt obligations by at least one
nationally recognized rating agency, and the Class
B Notes be rated in the "A" category or its
equivalent by at least one nationally recognized
rating agency.
THE RECEIVABLES POOL
The Receivables to be transferred to the Trust on the Closing Date (the
"Receivables Pool") were originated by Navistar Financial Corporation ("NFC").
Some 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 on 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 and those Retail
Notes owned by TRIP which satisfied several criteria, including that each
Receivable (a) has a first payment due date on or before October 31, 2000, (b)
has an original term to maturity of 12 to 84 months, (c) has a remaining term to
maturity of 12 to 72 months, (d) provides for finance charges at an APR of no
less than 6.50%, (e) was not more than 60 days past due as of the Cutoff Date,
and (f) 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 as of the Cutoff Date are as set forth in the following tables.
Due to rounding, the percentages shown in these tables may not add to 100.00%.
-9-
<PAGE>
Composition of the Receivables Pool
<TABLE>
<CAPTION>
Weighted Weighted
Initial Aggregate Average Average Average
Weighted Average Aggregate Original Initial Original Remaining
Annual Percentage Receivables Principal Number of Receivables Maturity Maturity
Rate (Range) Balance Balance Receivables Balance (Range) (Range)
----------------- -------------- --------------- ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
9.786% $764,710,097.53 $812,766,768.15 16,390 $46,657.11 55.29 51.08
(6.73%-21.99%)(1) months months
(14 to 84 (12 to 72
months) months)
</TABLE>
(1) Excludes 12 Receivables with APRs above 21.99%.
Distribution by Annual Percentage Rate of the Receivables Pool
Percentage of Initial
Annual Percentage Number of Initial Aggregate
Rate Range Receivables Receivables Balance Receivables Balance
----------------- ----------- ------------------- ----------------------
6.50-7.49% 326 $ 14,000,837.26 1.83%
7.50-8.49% 2,401 129,358,038.24 16.92%
8.50-9.49% 6,388 301,925,880.66 39.48%
9.50-10.49% 2,561 132,499,678.95 17.33%
10.50-11.49% 1,633 76,469,417.28 10.00%
11.50-12.49% 959 45,658,702.94 5.97%
12.50-13.49% 647 26,199,238.63 3.43%
13.50-14.49% 535 15,219,274.42 1.99%
14.50-15.49% 432 11,149,250.32 1.46%
15.50-16.49% 236 6,078,140.03 0.79%
16.50-17.49% 97 2,308,870.25 0.30%
17.50-17.99% 55 1,382,585.62 0.18%
18.00% & Over 120 2,460,182.93 0.32%
------ --------------- ------
Total 16,390 $764,710,097.53 100.00%
====== =============== ======
-10-
<PAGE>
Distribution by Remaining Maturity of the Receivables Pool
Remaining Percentage of Initial
Maturity Number of Initial Aggregate
(Months) Receivables Receivables Balance Receivables Balance
--------- ----------- ------------------- ---------------------
1-12 49 $ 630,810.09 0.08%
13-24 1,259 32,723,717.59 4.28%
25-36 2,852 90,110,375.17 11.78%
37-48 3,119 143,043,573.58 18.71%
49-60 6,914 390,126,058.03 51.02%
61-66 429 26,744,436.82 3.50%
67 & Over 1,768 81,331,126.25 10.64%
------ --------------- ------
Total 16,390 $764,710,097.53 100.00%
====== =============== ======
Distribution by Payment Terms of the Receivables Pool
Percentage of Initial
Aggregate
Type of Receivable Receivables Balance
------------------ -------------------
Equal Payment Fully Amortizing 56.08%
Equal Payment Balloon 13.02%
Equal Payment Skip 4.60%
Level Principal Fully Amortizing 5.26%
Level Principal Balloon 17.48%
Level Principal Skip 0.14%
Other 3.41%
------
Total 100.00%
======
-11-
<PAGE>
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 states with the largest
concentration of Receivables. No other state accounts for more than 1.82% of
the Initial Aggregate Receivables Balance. None of the Receivables were
originated in Alaska or Hawaii.
Geographic Distribution of the Receivables Pool
Percentage of Initial
Aggregate Receivables
State(1) Balance
-------- ----------------------
Texas 9.12%
California 7.24%
Illinois 6.55%
Ohio 6.44%
New York 5.99%
Pennsylvania 4.26%
Florida 4.01%
Minnesota 3.63%
Iowa 3.45%
Georgia 3.17%
Tennessee 3.14%
Maryland 3.05%
Arkansas 3.01%
Michigan 2.82%
Indiana 2.57%
Wisconsin 2.42%
New Jersey 2.39%
Other 26.74%
------
Total 100.00%
======
___________
(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 82.50% of the Initial
Aggregate Receivables Balance, constituting 72.52% of the aggregate number of
Receivables, represent Receivables secured by new vehicles. The remainder are
secured by used vehicles.
-12-
<PAGE>
THE SERVICER
Delinquencies, Repossessions and Net Losses
Set forth below is selected 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. As a result of the bankruptcy of one
of NFC's largest obligors, a combined charge of $10.9 million was taken in 1996
by NFC and International, $3.8 million of which was reversed in 1998 by NFC.
The performance of the serviced portfolio of Retail Notes declined during the
nine-month period ended July 31, 2000. The loss and delinquency percentages for
this period exceed the levels for any of the other periods shown below. NFC
believes that the significant increase in delinquencies is due to lower
operating margins realized by trucking companies, resulting primarily from
higher fuel costs and secondarily from reductions in overall freight shipments
and a continuing shortage of truck drivers. Although repossessions for the
nine-month period are in line with historical repossessions, losses are
significantly higher; NFC attributes the increase principally to industry-wide
lower resale values for used trucks. There can be no assurance that the
delinquency, repossession and net loss experience on the Receivables Pool will
be comparable to that set forth below. Due to rounding, the amounts shown for
NFC and International separately in this table may not add to the amount shown
for NFC and International combined.
-13-
<PAGE>
<TABLE>
<CAPTION>
Year Ended October 31, Nine Months Ended
---------------------------------------- -----------------
July 31,
-------
NFC Retail Notes 1995 1996 1997 1998 1999 1999 2000
---------------- ---- ---- ---- ---- ---- ---- ----
($ in millions)
<S> <C> <C> <C> <C> <C> <C> <C>
Gross Balance Outstanding at end of
Period.............................. $2,073 $2,282 $2,282 $2,481 $2,825 $2,715 $2,977
Gross Balance Past Due as a
Percentage of Gross Balance
Outstanding at end of Period
31-60 days......................... 2.43% 1.99% 2.42% 2.49% 2.87% 3.52% 4.13%
over 60 days....................... 0.09% 0.30% 0.60% 0.61% 0.52% 0.62% 1.32%
Average Gross Balance of Retail
Notes (13 month average).......... $1,809 $2,204 $2,245 $2,339 $2,632 $2,587 $2,844
Net Losses (recoveries):
NFC................................ $ 0.3 $ 5.0 $ 2.1 $ - $ 5.2 $ 3.6 $ 6.4
International...................... $ 0.6 $ 9.5 $ 3.9 $ 9.9 $ 3.0 $ 1.0 $ 9.7
------ ------ ------ ------ ------ ------ ------
Combined........................... $ 0.9 $ 14.5 $ 6.0 $ 9.9 $ 8.2 $ 4.6 $ 16.1
Liquidations minus Net Losses........ $ 833 $1,002 $1,083 $1,178 $1,193 $ 886 $ 893
Net Losses (recoveries) as a
Percentage of Liquidations
minus Net Losses:
NFC................................ 0.04% 0.50% 0.19% 0.00% 0.44% 0.41% 0.72%
International...................... 0.07% 0.95% 0.36% 0.84% 0.25% 0.11% 1.08%
------ ------ ------ ------ ------ ------ ------
Combined........................... 0.11% 1.45% 0.55% 0.84% 0.69% 0.52% 1.80%
Net Losses (recoveries) as a
Percentage of Average Gross
Balance: (1)
NFC................................ 0.02% 0.23% 0.09% 0.00% 0.20% 0.19% 0.30%
International...................... 0.03% 0.43% 0.18% 0.42% 0.11% 0.05% 0.45%
------ ------ ------ ------ ------ ------ ------
Combined........................... 0.05% 0.66% 0.27% 0.42% 0.31% 0.24% 0.75%
Repossessions as a Percentage of
Average Gross Balance (1)........... 0.92% 3.15% 2.01% 2.31% 1.94% 1.81% 2.48%
</TABLE>
(1) July 31 figures have been annualized.
WEIGHTED AVERAGE LIFE OF THE NOTES
Prepayments on medium and heavy duty truck, bus and trailer receivables can
be measured relative to a prepayment standard or model. The model used in this
Term Sheet, the Absolute Prepayment Model (the "ABS Model"), represents an
assumed rate of prepayment each month relative to the original number of
receivables in a pool of receivables. The ABS Model further assumes that all the
receivables are the same size and amortize at the same rate and that each
receivable in each month of its life will either be paid as scheduled or prepaid
in full. The ABS Model does not purport to be an historical description of
prepayment experience or a prediction of the anticipated rate of prepayment of
receivables, including the Receivables. As the rate of payment of principal of
each class of Notes will depend on the rate of payment (including prepayments)
of the principal balance of the Receivables, final payment of any class of Notes
will likely occur significantly earlier than the respective Final Scheduled
Distribution Dates. Reinvestment risk associated with early payment of the Notes
will be borne exclusively by the Noteholders.
-14-
<PAGE>
The table captioned "Percent of Initial Principal Amount of the Offered
Notes Remaining at Various ABS Percentages" (the "ABS Table") has been prepared
on the basis of characteristics of the Receivables. The ABS Table assumes that
(1) the Receivables prepay in full at the specified constant percentage of ABS
monthly, with no defaults, losses or repurchases, (2) each scheduled monthly
payment on the Receivables is made on the last day of each month and each month
has 30 days, (3) payments on the Notes are made on each Distribution Date, and
each such date is assumed to be the fifteenth day of each applicable month, (4)
the balance in the Reserve Account on each Distribution Date is equal to the
Specified Reserve Account Balance, and (5) except as specified otherwise, the
Servicer does not exercise its option to purchase the Receivables. The ABS Table
indicates the projected weighted average life of each class of Notes and sets
forth the percent of the initial principal amount of each class of Notes that is
projected to be outstanding after each of the Distribution Dates shown at
various constant ABS percentages.
The ABS Table also assumes that the Receivables consist of a single Equal
Payment Fully Amortizing Receivable having an assumed Cutoff Date of October 1,
2000, and the following annual percentage rate, original maturity and remaining
maturity:
Annual Original Remaining
Receivables Percentage Maturity Maturity
Balance Rate (In Months) (In Months)
------------- ----------- ----------- -----------
$764,710,097.53 9.786% 55 51
The ABS Table further assumes that the first distribution of principal on the
Notes occurs on November 15, 2000, and that the Closing Date is November 1,
2000. The actual characteristics and performance of the Receivables will differ
from the assumptions used in constructing the ABS Table. The assumptions used
are hypothetical and have been provided only to give a general sense of how the
principal cash flows might behave under varying prepayment scenarios. It is
very unlikely that the Receivables will prepay at a constant level of the ABS
Model until maturity or that all of the Receivables will prepay at the same
level of the ABS Model. Moreover, the diverse terms of Receivables within the
hypothetical pool could produce slower or faster principal distributions than
indicated in the ABS Table at the various constant percentages of the ABS Model
specified, even if the original and remaining terms to maturity of the
Receivables are as assumed. For example, the Receivables have annual percentage
rates that range from 6.73% to 30.00%, and only 56.08% of the Receivables (by
percentage of Initial Aggregate Receivables Balance) are Equal Payment Fully
Amortizing Receivables. Any difference between such assumptions and the actual
characteristics and performance of the Receivables, or actual prepayment
experience, will affect the percentages of initial balances outstanding over
time and the weighted average lives of each class of Notes.
-15-
<PAGE>
Percent of Initial Principal Amount of the Offered Notes Remaining at Various
ABS Percentages
<TABLE>
<CAPTION>
Class A-1 Notes Class A-2
--------------------------------------------------------------- -------------------------------------------------------------
Distribution Distribution
Date 0.00% 1.00% 1.40% 1.80% 2.00% Date 0.00% 1.00% 1.40% 1.80% 2.00%
------------- ---- ---- ---- ---- ---- ------------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
Closing Date 100% 100% 100% 100% 100% Closing Date 100% 100% 100% 100% 100%
11/15/00 91% 86% 83% 81% 80% 11/15/00 100% 100% 100% 100% 100%
12/15/00 83% 72% 67% 62% 60% 12/15/00 100% 100% 100% 100% 100%
1/15/01 74% 57% 51% 43% 40% 1/15/01 100% 100% 100% 100% 100%
2/15/01 65% 44% 35% 25% 20% 2/15/01 100% 100% 100% 100% 100%
3/15/01 56% 30% 19% 7% 1% 3/15/01 100% 100% 100% 100% 100%
4/15/01 47% 16% 3% 0% 0% 4/15/01 100% 100% 100% 94% 90%
5/15/01 38% 2% 0% 0% 0% 5/15/01 100% 100% 93% 84% 79%
6/15/01 29% 0% 0% 0% 0% 6/15/01 100% 94% 84% 74% 69%
7/15/01 19% 0% 0% 0% 0% 7/15/01 100% 86% 75% 64% 58%
8/15/01 10% 0% 0% 0% 0% 8/15/01 100% 78% 67% 54% 48%
9/15/01 1% 0% 0% 0% 0% 9/15/01 100% 71% 58% 45% 38%
10/15/01 0% 0% 0% 0% 0% 10/15/01 95% 63% 50% 36% 29%
11/15/01 0% 0% 0% 0% 0% 11/15/01 89% 56% 41% 27% 19%
12/15/01 0% 0% 0% 0% 0% 12/15/01 84% 48% 33% 18% 10%
1/15/02 0% 0% 0% 0% 0% 1/15/02 78% 41% 25% 9% 1%
2/15/02 0% 0% 0% 0% 0% 2/15/02 72% 34% 18% 1% 0%
3/15/02 0% 0% 0% 0% 0% 3/15/02 67% 27% 10% 0% 0%
4/15/02 0% 0% 0% 0% 0% 4/15/02 61% 20% 2% 0% 0%
5/15/02 0% 0% 0% 0% 0% 5/15/02 55% 13% 0% 0% 0%
6/15/02 0% 0% 0% 0% 0% 6/15/02 49% 6% 0% 0% 0%
7/15/02 0% 0% 0% 0% 0% 7/15/02 43% 0% 0% 0% 0%
8/15/02 0% 0% 0% 0% 0% 8/15/02 37% 0% 0% 0% 0%
9/15/02 0% 0% 0% 0% 0% 9/15/02 31% 0% 0% 0% 0%
10/15/02 0% 0% 0% 0% 0% 10/15/02 25% 0% 0% 0% 0%
11/15/02 0% 0% 0% 0% 0% 11/15/02 19% 0% 0% 0% 0%
12/15/02 0% 0% 0% 0% 0% 12/15/02 13% 0% 0% 0% 0%
1/15/03 0% 0% 0% 0% 0% 1/15/03 7% 0% 0% 0% 0%
2/15/03 0% 0% 0% 0% 0% 2/15/03 * 0% 0% 0% 0%
3/15/03 0% 0% 0% 0% 0% 3/15/03 0% 0% 0% 0% 0%
4/15/03 0% 0% 0% 0% 0% 4/15/03 0% 0% 0% 0% 0%
5/15/03 0% 0% 0% 0% 0% 5/15/03 0% 0% 0% 0% 0%
6/15/03 0% 0% 0% 0% 0% 6/15/03 0% 0% 0% 0% 0%
7/15/03 0% 0% 0% 0% 0% 7/15/03 0% 0% 0% 0% 0%
8/15/03 0% 0% 0% 0% 0% 8/15/03 0% 0% 0% 0% 0%
9/15/03 0% 0% 0% 0% 0% 9/15/03 0% 0% 0% 0% 0%
10/15/03 0% 0% 0% 0% 0% 10/15/03 0% 0% 0% 0% 0%
11/15/03 0% 0% 0% 0% 0% 11/15/03 0% 0% 0% 0% 0%
12/15/03 0% 0% 0% 0% 0% 12/15/03 0% 0% 0% 0% 0%
1/15/04 0% 0% 0% 0% 0% 1/15/04 0% 0% 0% 0% 0%
2/15/04 0% 0% 0% 0% 0% 2/15/04 0% 0% 0% 0% 0%
3/15/04 0% 0% 0% 0% 0% 3/15/04 0% 0% 0% 0% 0%
4/15/04 0% 0% 0% 0% 0% 4/15/04 0% 0% 0% 0% 0%
5/15/04 0% 0% 0% 0% 0% 5/15/04 0% 0% 0% 0% 0%
6/15/04 0% 0% 0% 0% 0% 6/15/04 0% 0% 0% 0% 0%
7/15/04 0% 0% 0% 0% 0% 7/15/04 0% 0% 0% 0% 0%
8/15/04 0% 0% 0% 0% 0% 8/15/04 0% 0% 0% 0% 0%
9/15/04 0% 0% 0% 0% 0% 9/15/04 0% 0% 0% 0% 0%
10/15/04 0% 0% 0% 0% 0% 10/15/04 0% 0% 0% 0% 0%
11/15/04 0% 0% 0% 0% 0% 11/15/04 0% 0% 0% 0% 0%
12/15/04 0% 0% 0% 0% 0% 12/15/04 0% 0% 0% 0% 0%
1/15/05 0% 0% 0% 0% 0% 1/15/05 0% 0% 0% 0% 0%
Average Lives to Average Lives to
Maturity (yrs) 0.46 0.29 0.25 0.22 0.21 Maturity (yrs) 1.64 1.15 1.00 0.88 0.82
</TABLE>
* Greater than 0.0% and less than 0.5%.
-16-
<PAGE>
Percent of Initial Principal Amount of the Offered Notes Remaining at Various
ABS Percentages
<TABLE>
<CAPTION>
Class A-3 Notes Class A-4
--------------------------------------------------------------- --------------------------------------------------------------
Distribution Distribution
Date 0.00% 1.00% 1.40% 1.80% 2.00% Date 0.00% 1.00% 1.40% 1.80% 2.00%
------------ ---- ---- ---- ---- ---- ------------- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <S> <C> <C> <C> <C> <C>
Closing Date 100% 100% 100% 100% 100% Closing Date 100% 100% 100% 100% 100%
11/15/00 100% 100% 100% 100% 100% 11/15/00 100% 100% 100% 100% 100%
12/15/00 100% 100% 100% 100% 100% 12/15/00 100% 100% 100% 100% 100%
1/15/01 100% 100% 100% 100% 100% 1/15/01 100% 100% 100% 100% 100%
2/15/01 100% 100% 100% 100% 100% 2/15/01 100% 100% 100% 100% 100%
3/15/01 100% 100% 100% 100% 100% 3/15/01 100% 100% 100% 100% 100%
4/15/01 100% 100% 100% 100% 100% 4/15/01 100% 100% 100% 100% 100%
5/15/01 100% 100% 100% 100% 100% 5/15/01 100% 100% 100% 100% 100%
6/15/01 100% 100% 100% 100% 100% 6/15/01 100% 100% 100% 100% 100%
7/15/01 100% 100% 100% 100% 100% 7/15/01 100% 100% 100% 100% 100%
8/15/01 100% 100% 100% 100% 100% 8/15/01 100% 100% 100% 100% 100%
9/15/01 100% 100% 100% 100% 100% 9/15/01 100% 100% 100% 100% 100%
10/15/01 100% 100% 100% 100% 100% 10/15/01 100% 100% 100% 100% 100%
11/15/01 100% 100% 100% 100% 100% 11/15/01 100% 100% 100% 100% 100%
12/15/01 100% 100% 100% 100% 100% 12/15/01 100% 100% 100% 100% 100%
1/15/02 100% 100% 100% 100% 100% 1/15/02 100% 100% 100% 100% 100%
2/15/02 100% 100% 100% 100% 90% 2/15/02 100% 100% 100% 100% 100%
3/15/02 100% 100% 100% 90% 79% 3/15/02 100% 100% 100% 100% 100%
4/15/02 100% 100% 100% 80% 68% 4/15/02 100% 100% 100% 100% 100%
5/15/02 100% 100% 93% 70% 58% 5/15/02 100% 100% 100% 100% 100%
6/15/02 100% 100% 84% 60% 48% 6/15/02 100% 100% 100% 100% 100%
7/15/02 100% 99% 75% 51% 38% 7/15/02 100% 100% 100% 100% 100%
8/15/02 100% 90% 66% 42% 29% 8/15/02 100% 100% 100% 100% 100%
9/15/02 100% 82% 58% 33% 20% 9/15/02 100% 100% 100% 100% 100%
10/15/02 100% 74% 49% 24% 11% 10/15/02 100% 100% 100% 100% 100%
11/15/02 100% 66% 41% 16% 3% 11/15/02 100% 100% 100% 100% 100%
12/15/02 100% 58% 33% 7% 0% 12/15/02 100% 100% 100% 100% 94%
1/15/03 100% 50% 25% 0% 0% 1/15/03 100% 100% 100% 99% 86%
2/15/03 100% 42% 17% 0% 0% 2/15/03 100% 100% 100% 92% 78%
3/15/03 93% 35% 10% 0% 0% 3/15/03 100% 100% 100% 84% 70%
4/15/03 85% 27% 3% 0% 0% 4/15/03 100% 100% 100% 77% 63%
5/15/03 76% 20% 0% 0% 0% 5/15/03 100% 100% 95% 70% 56%
6/15/03 68% 12% 0% 0% 0% 6/15/03 100% 100% 88% 63% 50%
7/15/03 60% 5% 0% 0% 0% 7/15/03 100% 100% 81% 57% 44%
8/15/03 52% 0% 0% 0% 0% 8/15/03 100% 98% 75% 50% 38%
9/15/03 44% 0% 0% 0% 0% 9/15/03 100% 91% 68% 45% 32%
10/15/03 35% 0% 0% 0% 0% 10/15/03 100% 84% 62% 39% 27%
11/15/03 27% 0% 0% 0% 0% 11/15/03 100% 77% 56% 34% 23%
12/15/03 18% 0% 0% 0% 0% 12/15/03 100% 71% 50% 29% 18%
1/15/04 9% 0% 0% 0% 0% 1/15/04 100% 64% 45% 25% 14%
2/15/04 1% 0% 0% 0% 0% 2/15/04 100% 58% 39% 20% 11%
3/15/04 0% 0% 0% 0% 0% 3/15/04 92% 51% 34% 16% 7%
4/15/04 0% 0% 0% 0% 0% 4/15/04 83% 45% 29% 13% 5%
5/15/04 0% 0% 0% 0% 0% 5/15/04 73% 39% 25% 10% 2%
6/15/04 0% 0% 0% 0% 0% 6/15/04 64% 33% 20% 7% 0%
7/15/04 0% 0% 0% 0% 0% 7/15/04 55% 28% 16% 4% 0%
8/15/04 0% 0% 0% 0% 0% 8/15/04 45% 22% 12% 2% 0%
9/15/04 0% 0% 0% 0% 0% 9/15/04 36% 17% 9% * 0%
10/15/04 0% 0% 0% 0% 0% 10/15/04 26% 12% 5% 0% 0%
11/15/04 0% 0% 0% 0% 0% 11/15/04 17% 7% 2% 0% 0%
12/15/04 0% 0% 0% 0% 0% 12/15/04 7% 2% 0% 0% 0%
1/15/05 0% 0% 0% 0% 0% 1/15/05 0% 0% 0% 0% 0%
Average Lives to Average Lives to
Maturity (yrs) 2.85 2.26 2.00 1.77 1.66 Maturity (yrs) 3.79 3.45 3.22 2.90 2.72
Average Lives to
10% Call (yrs) 3.72 3.35 3.09 2.77 2.57
</TABLE>
* Greater than 0.0% and less than 0.5%.
-17-
<PAGE>
Percent of Initial Principal Amount of the Offered Notes Remaining at Various
ABS Percentages
<TABLE>
<CAPTION>
Class B Notes
--------------------------------------------------------------
Distribution
Date 0.00% 1.00% 1.40% 1.80% 2.00%
------------ ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Closing Date 100% 100% 100% 100% 100%
11/15/00 100% 100% 100% 100% 100%
12/15/00 100% 100% 100% 100% 100%
1/15/01 100% 100% 100% 100% 100%
2/15/01 100% 100% 100% 100% 100%
3/15/01 100% 100% 100% 100% 100%
4/15/01 100% 100% 100% 98% 97%
5/15/01 100% 100% 98% 95% 93%
6/15/01 100% 98% 95% 92% 90%
7/15/01 100% 96% 92% 89% 87%
8/15/01 100% 93% 89% 86% 84%
9/15/01 100% 91% 87% 83% 81%
10/15/01 98% 88% 84% 80% 77%
11/15/01 97% 86% 82% 77% 74%
12/15/01 95% 84% 79% 74% 72%
1/15/02 93% 81% 76% 71% 69%
2/15/02 91% 79% 74% 69% 66%
3/15/02 89% 77% 72% 66% 63%
4/15/02 88% 75% 69% 63% 61%
5/15/02 86% 72% 67% 61% 58%
6/15/02 84% 70% 64% 58% 55%
7/15/02 82% 68% 62% 56% 53%
8/15/02 80% 66% 60% 54% 51%
9/15/02 78% 64% 58% 52% 48%
10/15/02 76% 62% 56% 49% 46%
11/15/02 74% 60% 54% 47% 44%
12/15/02 72% 58% 52% 45% 42%
1/15/03 71% 56% 50% 43% 40%
2/15/03 69% 54% 48% 41% 38%
3/15/03 67% 52% 46% 39% 36%
4/15/03 65% 50% 44% 38% 34%
5/15/03 63% 48% 42% 36% 33%
6/15/03 60% 46% 40% 34% 31%
7/15/03 58% 45% 39% 33% 30%
8/15/03 56% 43% 37% 31% 28%
9/15/03 54% 41% 36% 30% 27%
10/15/03 52% 39% 34% 29% 26%
11/15/03 50% 38% 33% 27% 25%
12/15/03 48% 36% 31% 26% 23%
1/15/04 46% 35% 30% 25% 22%
2/15/04 44% 33% 29% 24% 22%
3/15/04 41% 31% 27% 23% 21%
4/15/04 39% 30% 26% 22% 20%
5/15/04 37% 29% 25% 21% 20%
6/15/04 35% 27% 24% 21% 19%
7/15/04 32% 26% 23% 20% 8%
8/15/04 30% 24% 22% 20% 0%
9/15/04 28% 23% 21% 19% 0%
10/15/04 25% 22% 20% 13% 0%
11/15/04 23% 21% 20% 6% 0%
12/15/04 21% 19% 16% 2% 0%
1/15/05 0% 0% 0% 0% 0%
Average Lives to
Maturity (yrs) 2.95 2.57 2.40 2.20 2.05
Average Lives to
10% Call (yrs) 2.87 2.43 2.21 1.97 1.83
</TABLE>
-18-
