<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): June 18, 1997
GREEN TREE FINANCIAL CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 01-08916 41-1807858
- ---------------------------- ------------------------ -------------------
(State or other Jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
1100 Landmark Towers, 345 St. Peter Street, Saint Paul, Minnesota 55102-1639
- -------------------------------------------------------------------------------
(Address of principal executive offices)
Registrant's telephone number, including area code: (612) 293-3400
--------------
Not Applicable
- -------------------------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE>
ITEM 1. Changes in Control of Registrant.
- ------- --------------------------------
Not applicable.
ITEM 2. Acquisition or Disposition of Assets.
- ------- ------------------------------------
Not applicable
ITEM 3. Bankruptcy or Receivership.
- ------- --------------------------
Not applicable
ITEM 4. Changes in Registrant's Certifying Accounting.
- ------- ---------------------------------------------
Not applicable
ITEM 5. Other Events.
- ------- ------------
Not applicable.
ITEM 6. Resignations of Registrant's Directors.
- ------- --------------------------------------
Not applicable
ITEM 7. Financial Statements and Exhibits.
- ------- ---------------------------------
(a) Financial statements of businesses acquired.
Not applicable
(b) Pro forma financial information.
Not applicable
2
<PAGE>
(c) Exhibits.
The following is filed herewith. The exhibit numbers correspond
with Item 601(b) of Regulation S-K.
Exhibit No. Description
----------- -----------
99 External Computational and Descriptive
Information distributed in connection with
$594,781,837 Recreational, Equipment and
Consumer Trust 1997-B, issued by Green Tree
Financial Corporation, as Seller and Servicer.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: June 19, 1997 GREEN TREE FINANCIAL CORPORATION
By: /s/ Scott T. Young
_____________________________
Scott T. Young
Vice President and Controller
3
<PAGE>
INDEX TO EXHIBITS
Exhibit
-------
Number Page
------ ----
99 External Computational and Descriptive 5
Information distributed in connection
with $594,781,837 Recreational, Equipment
and Consumer Trust 1997-B, issued by Green
Tree Financial Corporation, as Seller and
Servicer.
4
<PAGE>
Green Tree Financial Corporation
Green Tree Recreational, Equipment & Consumer
Trust 1997-B
$594,781,837 (Approximate)
- --------------------------------------------------------------------------------
This information does not constitute either an offer to sell or a solicitation
of an offer to buy any of the securities referred to herein. Offers to sell and
solicitations of offers to buy the securities are made only by, and this
information must be read in conjunction with, the final Prospectus Supplement
and the related Prospectus or, if not registered under the securities laws, the
final Offering Memorandum (the "Offering Document"). Information contained
herein does not purport to complete and is subject to the same qualifications
and assumptions, and should be considered by investors only in light of the same
warnings, lack of assurances, and representations and other precautionary
matters, as disclosed in the Offering Document. Information regarding the
underlying assets has been provided by the issuer of the securities or an
affiliate thereof and has not been independently verified by Lehman Brothers
Inc. or any affiliate. The analyses contained herein have been prepared on the
basis of certain assumptions (including, in certain cases, assumptions specified
by the recipient hereof) regarding payments, interest rates, losses and other
matters, including, but not limited to, the assumptions described in the
Offering Document. Lehman Brothers Inc., and any of its affiliates, make no
representation or warranty as to the actual rate or timing of payments on any of
the underlying assets or the payments or yield on the securities. This
information supersedes any prior versions hereof and will be deemed to be
superseded by any subsequent versions (including, with respect to any
descriptions of the securities or underlying assets, the information contained
in the Offering Document).
<PAGE>
ASSET BACKED SECURITIES EXTERNAL COMPUTATIONAL MATERIALS
--------------------------------------------------------
Green Tree Financial Corporation (Seller and Servicer)
$594,781,837(Approximate)
Green Tree Recreational, Equipment & Consumer
Trust 1997-B
<TABLE>
<CAPTION>
Securities Offered:
- ------------------------------------------------------------------------------------------------------------------
Expected Principal
WAL@100% Payment Expected
Size % of Credit Benchmark Prepayment Window Ratings
Class ($MM) Series Priority Index Assumption (mos.) (S&P/Fitch)
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
To 10% Call
- ------------------------------------------------------------------------------------------------------------------
A-1 $495.150 83.25% Senior 3 Year 3.01 1-91 (91) AAA/AAA
A-2 $ 32.715 5.50% Mezz 3 Year 3.01 1-91 (91) AA/AA
A-3 $ 26.765 4.50% Mezz 3 Year 3.01 1-91 (91) A/A+
A-4 $ 16.355 2.75% Sub 3 Year 3.01 1-91 (91) BBB/BBB
B $ 23.797 4.00% Sub 3 Year 3.01 1-91 (91) A-/A
- ------------------------------------------------------------------------------------------------------------------
To Maturity
- ------------------------------------------------------------------------------------------------------------------
A-1 $495.150 83.25% Senior 3 Year 3.28 1-240 (240) AAA/AAA
A-2 $ 32.715 5.50% Mezz 3 Year 3.28 1-240 (240) AA/AA
A-3 $ 26.765 4.50% Mezz 3 Year 3.28 1-240 (240) A/A+
A-4 $ 16.355 2.75% Sub 3 Year 3.28 1-240 (240) BBB/BBB
B $ 23.797 4.00% Sub 3 Year 3.28 1-240 (240) A-/A
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
1
<PAGE>
Transaction Specifics
- ---------------------
Managers: Lehman Brothers (Lead Manager), Morgan Stanley,
Merrill Lynch
Seller and Servicer: Green Tree Financial Corporation
Initial Collateral: An initial pool of 32,529 retail installment sales
contracts and promissory notes for the purchase of
a variety of consumer products and equipment,
retail installment sales contracts and promissory
notes financing home improvements, and closed-end
home equity loans (collectively, the "Contracts").
Subsequent Collateral: On the Closing Date, approximately $100 million of
additional Contracts, which will not include any
home improvement loans or home equity loans (the
"Subsequent Contracts"), will be added to the
collateral pool.
SMMEA: The bonds are Not SMMEA qualifying.
Distribution Date: The 15th of each month, beginning July 15, 1997
Legal Final: July 2028
Delay Days: No delay on bonds
Expected Pricing: Week of June 16, 1997
Expected Closing: Week of June 23, 1997
Settlement: 5 Business Days
Trustee: First Trust National Association
Optional Redemption: 10% Cleanup Call
Tax Status: Green Tree Recreational, Equipment & Consumer Trust
1997-B will elect to be treated as a grantor trust
for federal income tax purposes.
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
2
<PAGE>
Prepayment Sensitivity Information
- ----------------------------------
Projected Performance Under Varying Prepayment Assumptions (1)
<TABLE>
<CAPTION>
Prepayment Assumption % 80% 90% **100%** 110% 120%
----------------------- ------ ------ -------- ------ ------
<S> <C> <C> <C> <C> <C>
To Call
- -------
Avg. Life (years) 3.39 3.19 3.01 2.85 2.70
Window (# of months) 101 96 91 86 82
To Maturity
- -----------
Avg. Life (years) 3.66 3.46 3.28 3.12 2.96
Window (# of months) 240 240 240 240 240
</TABLE>
(1) These assumptions may change and are subject to pricing.
(2) Modified Duration - assumes an example yield.
<TABLE>
<CAPTION>
Asset Type % of Initial 100% Prepayment
Receivables Assumption
- --------------------------------------------------------------------------------
<S> <C> <C>
Trucks 17.1% 1.2% ABS
- --------------------------------------------------------------------------------
Motorcycles, Aircraft 22.4% 28% CPR
- --------------------------------------------------------------------------------
Marine 17.1% 225% PSA
- --------------------------------------------------------------------------------
Home Equity and High LTV 13% CPR
Home Improvement 19.6%
- --------------------------------------------------------------------------------
Home Improvement 4.1% 20% CPR
- --------------------------------------------------------------------------------
RVs, Sport Vehicles,
Horsetrailers, Pianos 19.8% 18% CPR
- --------------------------------------------------------------------------------
</TABLE>
The following prepayment speeds represent the underlying prepayment speed of a
given asset class for a specific percentage of the prepayment rate
assumption.
<TABLE>
<CAPTION>
Asset Type Prepayment 80% 90% **100%** 110% 120%
Type
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Trucks ABS 1.0% 1.1% 1.2% 1.3% 1.4%
- ----------------------------------------------------------------------------------------------
Motorcycles, Aircraft CPR 22% 25% 28% 31% 34%
- ----------------------------------------------------------------------------------------------
Marine PSA 180% 203% 225% 248% 270%
- ----------------------------------------------------------------------------------------------
Home Equity and High LTV Home 10% 12% 13% 14% 16%
Improvement CPR
- ----------------------------------------------------------------------------------------------
Home Improvement CPR 16% 18% 20% 22% 24%
- ----------------------------------------------------------------------------------------------
RVs, Sport Vehicles, Horsetrailers,
Pianos CPR 14% 16% 18% 20% 22%
- ----------------------------------------------------------------------------------------------
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
3
<PAGE>
Summary Description of the Initial Collateral Pool
- --------------------------------------------------
. As of the Cut-Off Date (5/31/97) the initial collateral pool had the
following characteristics:
. fully amortizing or balloon
. fixed contractual rate of interest
. interest computed on the simple interest method.
The Contracts in the initial collateral pool were originated or purchased and
will be serviced by Green Tree Financial Corporation.
. Each Contract has its last scheduled payment due no later than June,
2027.
. All Contracts have a contractual rate of interest of at least 5.99% per
annum and not more than 22.75%
. The Contracts have remaining maturities of at least 3 months but not more
than 360 months and original maturities of at least 5 months but not
more than 360 months
INITIAL COLLATERAL POOL
Aggregate Outstanding Principal Balance $494,781,838
Number of Contracts 32,529
Wgt. Avg. Contract Rate: 12.00%
Range of Rates: 5.99% - 22.75%
Wgt. Avg. Orig. Maturity: 123
Wgt. Avg. Rem. Maturity: 122
Avg. Rem. Princ. Balance: $15,210
GEOGRAPHIC DISTRIBUTION OF INITIAL COLLATERAL POOL
<TABLE>
<CAPTION>
% of Initial Collateral
Number of Aggregate Principal Pool by Outstanding
State Contracts Balance Outstanding Principal Balance
- ---------------------- ------------------ ------------------------------ ---------------------------
<S> <C> <C> <C>
CA 5,381 $ 76,563,223 15.47%
FL 2,781 $ 45,740,194 9.24%
TX 2,877 $ 45,105,770 9.12%
AZ 1,805 $ 24,975,352 5.05%
Other States* 19,685 $302,397,298 61.12%
Total /(1)/ 32,529 $494,781,838 100.00%
</TABLE>
- -----------
* No one State in this category constitutes more than 5% of the Outstanding
Principal Balance of the Initial Collateral Pool.
(1) Percentages do not add to 100% due to rounding
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
4
<PAGE>
YEAR OF ORIGINATION OF INITIAL COLLATERAL POOL
<TABLE>
<CAPTION>
% of Initial Collateral
Number of Aggregate Principal Pool by Outstanding
Year of Origination Contracts Balance Outstanding Principal Balance
- --------------------- ---------- --------------------- -------------------------
<S> <C> <C> <C>
1986 23 $ 152,142 0.03%
1987 12 $ 119,304 0.02%
1988 65 $ 558,361 0.11%
1991 2 $ 20,620 *
1992 2 $ 19,067 *
1994 2 $ 18,106 *
1995 3 $ 91,138 0.02%
1996 2,539 $ 22,944,679 4.64%
1997 29,881 $470,858,419 95.16%
Total /(1)/ 32,529 $494,781,838 100.00%
- ------------
</TABLE>
* Indicates a percentage greater than 0% but less than .005%
(1) Percentages do not add to 100% due to rounding
DISTRIBUTION OF OUTSTANDING PRINCIPAL BALANCES OF INITIAL COLLATERAL POOL
<TABLE>
<CAPTION>
% of Initial Collateral
Outstanding Principal Balance Number of Aggregate Principal Pool by Outstanding
(in Dollars) Contracts Balance Outstanding Principal Balance
- ----------------------------- ------------ ----------------------- --------------------------
<S> <C> <C> <C>
Between $1-$25,000 28,634 $265,680,015 53.70%
Between $25,001-$50,000 2,796 $ 95,245,488 19.25%
Between $50,001-$75,000 444 $ 26,984,066 5.45%
Between $75,001-$100,000 337 $ 29,060,313 5.87%
Between $100,001-$125,000 98 $ 10,708,760 2.16%
Between $125,001-$150,000 46 $ 6,254,793 1.26%
Between $150,001-$175,000 45 $ 7,236,639 1.46%
Between $175,001-$200,000 21 $ 3,916,121 0.79%
Between $200,001-$225,000 11 $ 2,376,135 0.48%
Between $225,001-$250,000 6 $ 1,405,261 0.28%
Between $250,001-$275,000 11 $ 2,881,128 0.58%
Between $275,001-$300,000 10 $ 2,880,726 0.58%
Between $300,001-$325,000 9 $ 2,832,996 0.57%
Between $325,001-$350,000 6 $ 1,998,132 0.40%
Between $350,001-$375,000 4 $ 1,459,041 0.29%
Between $375,001-$400,000 6 $ 2,340,580 0.47%
Between $400,001-$425,000 2 $ 826,862 0.17%
Between $425,001-$450,000 4 $ 1,745,840 0.35%
Between $450,001-$475,000 1 $ 453,260 0.09%
Between $475,001-$500,000 4 $ 1,975,495 0.40%
Between $500,001-$600,000 13 $ 7,290,037 1.47%
Between $600,001-$700,000 7 $ 4,420,586 0.89%
Between $700,001-$800,000 4 $ 2,909,518 0.59%
Between $800,001-$900,000 2 $ 1,689,643 0.34%
Between $900,001-$1,000,000 2 $ 1,840,580 0.37%
Over $1,000,000 6 $ 8,369,821 1.69%
Total /(1)/ 32,529 $494,781,838 100.00%
- -----------
</TABLE>
(1) Percentages do not add to 100% due to rounding
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
5
<PAGE>
DISTRIBUTION OF ORIGINAL BALANCES OF INITIAL COLLATERAL POOL
<TABLE>
<CAPTION>
% of Initial Collateral
Number of Aggregate Principal Pool by Outstanding
Original Balance (in Dollars) Contracts Balance Outstanding Principal Balance
----------------------------- --------- ------------------- -----------------------
<S> <C> <C> <C>
Between $1-$25,000 28,545 $264,192,477 53.40%
Between $25,001-$50,000 2,878 $ 96,503,757 19.50%
Between $50,001-$75,000 445 $ 26,794,207 5.42%
Between $75,001-$100,000 339 $ 29,086,348 5.88%
Between $100,001-$125,000 101 $ 10,981,713 2.22%
Between $125,001-$150,000 47 $ 6,374,933 1.29%
Between $150,001-$175,000 44 $ 7,062,651 1.43%
Between $175,001-$200,000 22 $ 4,090,110 0.83%
Between $200,001-$225,000 9 $ 1,930,329 0.39%
Between $225,001-$250,000 8 $ 1,851,067 0.37%
Between $250,001-$275,000 10 $ 2,608,822 0.53%
Between $275,001-$300,000 11 $ 3,153,032 0.64%
Between $300,001-$325,000 9 $ 2,832,996 0.57%
Between $325,001-$350,000 6 $ 1,998,132 0.40%
Between $350,001-$375,000 4 $ 1,459,041 0.29%
Between $375,001-$400,000 6 $ 2,340,580 0.47%
Between $400,001-$425,000 2 $ 826,862 0.17%
Between $425,001-$450,000 4 $ 1,745,840 0.35%
Between $450,001-$475,000 1 $ 453,260 0.09%
Between $475,001-$500,000 4 $ 1,975,495 0.40%
Between $500,001-$600,000 13 $ 7,290,037 1.47%
Between $600,001-$700,000 7 $ 4,420,586 0.89%
Between $700,001-$900,000 6 $ 4,599,162 0.93%
Between $900,001-$1,000,000 2 $ 1,840,580 0.37%
Over $1,000,000 6 $ 8,369,821 1.69%
Total /(1)/ 32,529 $494,781,838 100.00%
</TABLE>
- --------------
(1) Percentages do not add to 100% due to rounding
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
6
<PAGE>
REMAINING MONTHS TO MATURITY OF INITIAL COLLATERAL POOL
<TABLE>
<CAPTION>
% of Initial Collateral
Number of Aggregate Principal Pool by Outstanding
Months Remaining Contracts Balance Outstanding Principal Balance
- ---------------- --------- ------------------- -----------------------
<S> <C> <C> <C>
1-12 90 $ 325,750 0.07%
13-24 1,096 $ 5,964,403 1.21%
25-36 2,434 $ 20,673,771 4.18%
37-48 3,978 $ 42,542,148 8.6%
49-60 7,951 $ 94,673,922 19.13%
61-72 2,506 $ 32,524,046 6.57%
73-84 1,935 $ 23,362,401 4.72%
85-96 745 $ 8,796,914 1.78%
97-108 76 $ 598,449 0.12%
109-120 4,591 $ 65,597,710 13.26%
121-132 8 $ 103,652 0.02%
133-144 1,993 $ 37,132,054 7.5%
145-156 2 $ 38,351 0.01%
157-168 4 $ 129,691 0.03%
169-180 2,995 $ 98,191,134 19.85%
181-192 3 $ 46,684 0.01%
193-204 3 $ 160,999 0.03%
205-216 1 $ 10,166 *
229-240 1,769 $ 52,999,199 10.71%
289-300 345 $ 10,768,778 2.18%
349-360 4 $ 141,616 0.03%
Total /(1)/ 32,529 $494,781,838 100.00%
------ ------------ ------
</TABLE>
- ----------------
* Indicates a percentage greater than 0% but less than .005%
(1) Percentages do not add to 100% due to rounding
RATES OF INITIAL COLLATERAL POOL
<TABLE>
<CAPTION>
% of Initial Collateral
Number of Aggregate Principal Pool by Outstanding
Range of Rates Contracts Balance Outstanding Principal Balance
- -------------- --------- ------------------- -----------------------
<S> <C> <C> <C>
From 0%-7.0000% 1 $ 7,693 *
From 7.0001%-7.5000% 1 $ 482,247 0.10%
From 7.5001%-8.0000% 4 $ 1,829,188 0.37%
From 8.0001%-8.5000% 46 $ 9,799,654 1.98%
From 8.5001%-9.0000% 306 $ 29,595,252 5.98%
From 9.0001%-9.5000% 750 $ 31,237,916 6.31%
From 9.5001%-10.0000% 2,144 $ 66,740,064 13.49%
From 10.0001%-10.5000% 1,865 $ 40,006,574 8.09%
From 10.5001%-11.0000% 3,545 $ 60,052,219 12.14%
From 11.0001%-11.5000% 1,616 $ 25,181,557 5.09%
From 11.5001%-12.0000% 2,855 $ 43,175,210 8.73%
From 12.0001%-12.5000% 1,031 $ 14,153,360 2.86%
From 12.5001%-13.0000% 1,753 $ 27,105,928 5.48%
From 13.0001%-13.5000% 462 $ 6,347,028 1.28%
From 13.5001%-14.0000% 3,650 $ 36,071,284 7.29%
From 14.0001%-14.5000% 1,996 $ 13,930,186 2.82%
From 14.5001%-15.0000% 1,598 $ 22,717,977 4.59%
Over 15.0000% 8,906 $ 66,348,499 13.41%
Total /(1)/ 32,529 $494,781,838 100.00%
------ ------------ ------
</TABLE>
- --------------
* Indicates a percentage greater than 0% but less than .005%
(1) Percentages do not add to 100% due to rounding
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
7
<PAGE>
Collateral Summary Statistics
- -----------------------------
<TABLE>
<CAPTION>
% of Weighted
Contract Average Weighted
Number % of Scheduled Pool Average Weighted Original Average
of Contract Principal Scheduled Principal Average Scheduled Remaining
Asset Type Contracts Pool Balance Principal Balance Rate Term Term
---------------------- --------- ---------- ------------- ----------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aircraft 385 1.18% $ 42,355,835 8.56% $110,015 9.73% 154 153
Horsetrailers 1,612 4.96% 15,247,259 3.08% 9,459 11.6% 115 114
Keyboards 476 1.46% 5,510,341 1.11% 11,576 11.19% 74 74
Motorcycles 8,130 24.99% 68,305,254 13.81% 8,402 13.68% 64 63
Marine Products 5,521 16.97% 84,430,432 17.06% 15,293 10.66% 138 137
RVs 3,360 10.33% 57,667,095 11.66% 17,163 10.29% 145 143
Sport Vehicles 3,722 11.44% 19,299,541 3.90% 5,185 15.86% 54 53
Trucks 1,123 3.45% 84,496,758 17.08% 75,242 10.75% 53 53
Home Equity 3,117 9.58% 71,152,991 14.38% 22,827 14.73% 204 203
Home Improvement 4,011 12.33% 20,487,790 4.14% 5,108 15.14% 89 87
High LTV Home
Improvement 1,072 3.30% 25,828,542 5.22% 24,094 11.17% 225 224
- ---------------------- ------ ------ ------------ ------ -------- ----- --- ---
Total (1) 32,529 100.00% $494,781,838 100.00% $ 15,210 12.00% 123 122
- ----------------------
</TABLE>
(1) Percentages do not add to 100% due to rounding
The following are the assumed characteristics of Subsequent Contracts as of
the Cut-off Date:
<TABLE>
<CAPTION>
Aggregate Principal Weighted Average Weighted Average Weighted Average
Asset Type Balance Outstanding Original Term Remaining Term Rate
- ---------------------- ------------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Aircraft $ 15,837,514 156 156 9.78%
Horsetrailer 4,271,369 124 124 11.48%
Keyboard 1,250,459 73 73 11.41%
Motorcycles 16,970,428 64 64 13.55%
Marine Products 21,127,884 131 131 11.08%
Recreational Vehicles 15,189,227 142 142 10.55%
Sport Vehicles 5,210,676 55 55 15.89%
Trucks 20,142,443 50 50 11.04%
------------ --- --- ------
Total $100,000,000 104 104 11.48%
</TABLE>
Recipients must read the statement printed on the attached cover. Do not use or
rely on this information if you have not received and reviewed this statement.
If you have not received this statement, call your Lehman Brothers account
executive for another copy.
8
