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) February 9, 1998
-----------------------
CASE RECEIVABLES II INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 33-99298 76-0439709
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
233 Lake Avenue, Racine, Wisconsin 53403
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (414) 636-6011
-------------------------
233 Lake Avenue, Racine, Wisconsin 53403
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
Item 5. Other Events
On February 9, 1998, the registrant made available to prospective
investors a term sheet (the "Term Sheet") setting forth a description of
the initial collateral pool and the proposed structure for the issuance of
$614,062,000 aggregate principal amount of asset-backed notes by Case
Equipment Loan Trust 1998-A. The Term Sheet is attached hereto as Exhibit 99.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits
Exhibit 99 Term Sheet dated February 9, 1998 of Case Equipment
Loan Trust 1998-A
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
CASE RECEIVABLES II INC.
(Registrant)
Dated: February 10, 1998 By: /s/ Peter Hong
----------------------
Peter Hong
<PAGE>
Exhibit Index
Exhibit 99 Term Sheet dated February 9, 1998 of Case Equipment Loan
Trust 1998-A
SUBJECT TO REVISION
TERM SHEET DATED FEBRUARY 9, 1998
$614,062,000 Asset Backed Notes
Case Equipment Loan Trust 1998-A
Issuer
Case Receivables II Inc.
Seller
Case Credit Corporation
Servicer
Attached is a preliminary term sheet (the "Term Sheet") describing the
structure, collateral pool and certain aspects of the Case Equipment Loan
Trust 1998-A (the "Trust"). The Term Sheet has been prepared by the Seller
for informational purposes only and is subject to modification or change.
The information and assumptions contained in the Term Sheet are preliminary
and will be superseded in their entirety by a prospectus supplement (the
"Prospectus Supplement") and by any other additional information
subsequently filed with the Securities and Exchange Commission (the
"Commission") or incorporated by reference in the relevant registration
statement (the "Registration Statement"). In addition, the attached Term
Sheet supersedes any prior or similar term sheet.
None of the Underwriters named below and none of their respective
affiliates makes any representation as to the accuracy or completeness of
any of the information set forth in the attached Term Sheet. This cover
sheet is not a part of the Term Sheet.
The Registration Statement (including a base prospectus (the "Prospectus"))
relating to the Trust has been filed with the Commission and has been
declared effective. The Prospectus Supplement relating to the securities
offered by the Trust will be filed after the securities have been priced
and all of the terms and information are finalized. This communication is
not an offer to sell or the solicitation of an offer to buy nor shall there
be any sale of the securities of the Trust in any state in which such
offer, solicitation or sale would be unlawful before the registration or
qualification under the securities laws of any such state. Interested
persons are referred to the Prospectus and Prospectus Supplement. Any
investment decision should be based upon the information in the Prospectus
and Prospectus Supplement as of their publication date. Sales of the
securities to be offered by the Trust may not be consummated unless the
purchaser has received both the Prospectus and the Prospectus Supplement.
The securities to be offered by the Trust under the Prospectus Supplement
have not been approved or disapproved by the Commission or any state
securities commission; any representation to the contrary is a criminal
offense.
Underwriters of the Class A Notes
J.P. Morgan & Co.
BancAmerica Robertson Stephens
Chase Securities Inc.
Credit Suisse First Boston
First Union Capital Markets Corp.
UBS Securities
Underwriters of the Class B Notes
J.P. Morgan & Co. Chase Securities Inc.
<PAGE>
$614,062,000 Asset Backed Notes
Case Equipment Loan Trust 1998-A
Subject to Revision
TERM SHEET
Issuer...................Case Equipment Loan Trust 1998-A (the "Trust" or the
"Issuer"), a Delaware business trust.
Seller...................Case Receivables II Inc. (the "Seller"), a Delaware
corporation and a wholly-owned subsidiary of Case
Credit Corporation.
Servicer.................Case Credit Corporation, a Delaware corporation (the
"Servicer" or "Case Credit").
Indenture Trustee.........Harris Trust and Savings Bank, as indenture trustee
(the "Indenture Trustee").
Trustee...................The Bank of New York, as trustee (the "Trustee").
The Notes:
A. The Class A Notes.......$72,113,000 Class A-1 _____% Asset Backed Notes
(the "A-1 Notes").
$190,750,000 Class A-2 _____% Asset Backed Notes
(the "A-2 Notes").
$145,750,000 Class A-3 _____% Asset Backed Notes
(the "A-3 Notes").
$180,449,000 Class A-4 _____% Asset Backed Notes
(the "A-4 Notes" and, with the A-1 Notes, A-2
Notes and A-3 Notes, the "Class A Notes").
B. The Class B Notes.......$25,000,000 Class B _____% Asset Backed Notes
(the "Class B Notes," and, with
the Class A Notes, the "Notes"). The Notes and the
Certificates referred to under "Other Securities"
below are collectively called the "Securities."
The Receivables............The Receivables consist of retail installment sale
contracts ("Contracts") secured by new or used
agricultural or construction equipment, including
rights to receive certain payments made with
respect to such Receivables, and security
interests in the equipment financed thereby, and
the proceeds thereof. On the closing date, the
Seller will own Contracts (the "Initial
Receivables") with a fixed rate of interest that
have an aggregate Contract Value of approximately
$325,333,194 as of January 31, 1998 (the "Initial
Cutoff Date").
As used herein: "Contract Value" means, with
respect to any day (including the Initial Cutoff
Date), the sum of (a) the present value of the
future scheduled payments on the Receivables
discounted monthly at an annual rate equal to:
(i) in the case of the Initial Receivables, the
Initial Cutoff Date APR, and (ii) in the case of
any Subsequent Receivables, the applicable
Subsequent Cutoff Date APR and (b) an amount
attributable to past due payments; "Initial
Cutoff Date APR" means 8.758%, which is the
weighted average annual percentage rate ("APR")
of the Initial Receivables as of the Initial
Cutoff Date; and "Subsequent Cutoff Date APR"
means, with respect to any Subsequent Cutoff
page 3
<PAGE>
Date, the weighted average APR of the Subsequent
Receivables sold as of such Subsequent Cutoff
Date.
The Trust will be obligated to purchase, subject
only to the availability thereof, additional
Contracts (the "Subsequent Receivables") from
time to time during the Funding Period having
an aggregate Contract Value of approximately
$299,666,806, such amount being equal to the
amount on deposit in a Pre- Funding Account
(the "Pre-Funding Account") on the Closing Date
(the "Initial Pre-Funded Amount"). It is
expected that Subsequent Receivables will be
conveyed to the Trust monthly on dates
specified by the Seller (each date on which
Subsequent Receivables are conveyed being
referred to as a "Subsequent Transfer Date")
occurring during the Funding Period, with such
transfers being given effect as of the close of
business on the last day of the preceding
calendar month (each, a "Subsequent Cutoff
Date"). The Subsequent Receivables together
with the Initial Receivables are referred to
herein as the "Receivables." The "Funding
Period" means the period from and including the
Closing Date until the earliest of: (a) the
first Payment Date on which the amount on
deposit in the Pre-Funding Account (after
giving effect to any transfers therefrom in
connection with the transfer of Subsequent
Receivables to the Issuer on or before such
Determination Date) is less than $100,000, (b)
the occurrence of an event of default or
a servicer default, (c) the occurrence of
certain events of insolvency with respect to
the Seller or the Servicer and (d) the close of
business on the August 1998 Payment Date.
Terms of the Notes:
A. Interest Payments..........The A-1 Notes and the A-2 Notes will each bear
interest at a fixed rate per annum, in each
case calculated on the basis of the actual
number of days in the applicable interest
period and a 360-day year. The A-3 Notes, the
A-4 Notes and the Class B Notes will each bear
interest at a fixed rate per annum, in each
case calculated on the basis of a 360-day
year of twelve 30-day months. Interest on the
Notes will be payable on the fifteenth day of
each calendar month or, if any such date is not
a business day, on the next business day (each,
a "Payment Date"), commencing on March 16, 1998.
Interest on the Class B Notes will not be paid
on any Payment Date until interest payments on
the Class A Notes have been paid in full. If
the amount of interest on the Class A Notes
payable on any Payment Date exceeds the amounts
available on such date, the Class A Noteholders
will receive their ratable share (based upon
the total amount of interest due to each of
them) of the amount available to be distributed
in respect of interest on the Class A Notes.
B. Principal Payments.........The principal of the Class A Notes will be
payable on each Payment Date, to the extent of
funds available therefor, in an amount
generally equal to the Class A Noteholders'
Monthly Principal Distributable Amount for such
Payment Date. Principal will be allocated and
distributed to the Class A Notes of lowest
numerical designation outstanding.
The principal of the Class B Notes will be
payable on each Payment Date, to the extent
of funds available therefor, in an amount
generally equal to the Class B Noteholders'
Principal Distributable Amount provided, that
no principal payments will be made with
respect to the Class B Notes on any Payment
Date until all amounts payable with respect
to the Class A Notes on that Payment Date
have been paid in full.
page 4
<PAGE>
As used herein, with respect to any Payment Date:
"Class A Noteholders' Monthly Principal
Distributable Amount" means, with respect to
any Payment Date, the Principal Distribution
Amount minus the Class B Noteholders' Monthly
Principal Distributable Amount.
"Class B Noteholders' Monthly Principal
Distributable Amount" means, with respect to
each Payment Date until the Payment Date on
which the outstanding principal amount of the
Class B Notes has been reduced to zero,
an amount equal to the excess, if any,
of: (a) the outstanding principal
amount of the Class B Notes on the
related Record Date minus any Class B
Noteholders' Principal Carryover Shortfall over
(b) the Initial Class B Percentage of the sum
of the outstanding Pool Balance and the
Pre-Funded Amount as of the beginning of the
current Collection Period; provided, however,
that if on the related Record Date any principal
of the A-1 Notes remains outstanding, then the
Class B Noteholders' Monthly Principal
Distributable Amount for such Payment Date
shall not exceed an amount equal to the
aggregate unscheduled principal payments on
the Receivables received during the related
Collection Period.
"Class B Noteholders' Principal Carryover
Shortfall" means, with respect to any Payment
Date, the excess of the Class B Noteholders'
Principal Distributable Amount for the
preceding Payment Date over the amount that was
actually deposited in the Note Distribution
Account in respect of principal of the Class B
Notes on such preceding Payment Date.
"Class B Noteholders' Principal Distributable
Amount" means, with respect to any Payment Date,
the sum of: (a) the Class B Noteholders'
Monthly Principal Distributable Amount for such
Payment Date and (b) the Class B Noteholders'
Principal Carryover Shortfall for such Payment
Date; provided, however, that, the sum of
clauses (a) and (b) shall not exceed the
outstanding principal amount of the Class B
Notes, and on the Final Scheduled Maturity Date,
the Class B Noteholders' Principal Distributable
Amount will include the amount, to the extent
of available funds, necessary (after giving
effect to the other amounts to be deposited in
the Note Distribution Account on such Payment
Date and allocable to principal) to reduce the
outstanding principal amount of the Class B
Notes to zero.
"Initial Class B Percentage" means 4%, which is
the percentage equivalent of: (a) the initial
balance of the Class B Notes (i.e., $25,000,000)
divided by (b) the Pool Balance as of the
Initial Cutoff Date plus the Initial Pre-Funded
Amount.
"Principal Distribution Amount" means
an amount (not less than zero) equal to: (i)
the sum of the Contract Value of all
Receivables and the Pre-Funded Amount as of the
beginning of the immediately preceding
collection period minus (ii) the sum of the
Contract Value of all Receivables and the
Pre-Funded Amount as of the beginning of the
current collection period.
The outstanding principal amount, if any, of the
A-1 Notes, the A-2 Notes and the A-3 Notes will
be payable in full on the March 1999 Payment
Date, the July 2001 Payment Date and the August
2002 Payment Date, respectively, in each case
from funds available therefor. The outstanding
page 5
<PAGE>
principal amount, if any, of the A-4 Notes and
the Class B Notes will be payable in full on
the February 2005 Payment Date (the "Final
Scheduled Maturity Date"), in each case from
funds available therefor.
C. Optional Redemption........The remaining Notes may be prepaid in whole, but
not in part, at a price equal to the unpaid
principal balance of such Notes plus accrued
and unpaid interest thereon, on the Payment
Date on which the Servicer exercises its option
to purchase the Receivables. The Servicer may
purchase the Receivables from the Trust when
the Pool Balance declines to 10% or less of the
Initial Pool Balance. As used herein, the "Pool
Balance" means the sum of the aggregate
Contract Values of the Receivables at the
beginning of a collection period, after giving
effect to all payments received from obligors
and certain amounts to be remitted by the
Servicer and the Seller for the purchase of
Receivables, as the case may be, with respect
to the preceding collection period and all
losses realized on Receivables liquidated
during such preceding collection period; and
"Initial Pool Balance" means the sum of: (a)
the Pool Balance as of the Initial Cutoff
Date plus (b) the aggregate Contract Value of
all Subsequent Receivables sold to the Issuer
as of their respective Subsequent Cutoff Dates.
Other Securities..............In addition to the Notes, the Trust will also
issue $10,938,000 ___% Asset Backed Certificates
(the "Certificates"). The Certificates will not
be publicly offered.
The Certificates will bear interest at
a fixed rate per annum (except that
during the Funding Period no interest will
accrue on the pre-funded portion of the
Certificates). No principal will be
distributable with respect to the Certificates
until the Notes have been repaid in full.
Pre-Funding Account...........The amount on deposit in the Pre-Funding Account
the "Pre-Funded Amount") will initially equal
the Initial Pre-Funded Amount of $299,666,806,
and, during the Funding Period, will be reduced
by the amount thereof used to purchase
Subsequent Receivables.
Negative Carry Account........In order to maintain the rating of the Notes at
their initial levels, the Servicer will
establish and maintain in the name of the
Indenture Trustee an account (the "Negative
Carry Account") for the benefit of the
Noteholders. The Negative Carry Account will be
created with an initial deposit by the Seller.
Spread Account................The Servicer will establish and maintain in the
name of the Indenture Trustee a collateral
account (the "Spread Account") into which funds
will be deposited from time to time. Funds on
deposit in the Spread Account will be available
on each Payment Date to cover shortfalls in
distributions of interest and principal on the
Notes. Funds on deposit in the Spread Account
will not be used to cover shortfalls in any
distributions on the Certificates. The Spread
Account will be created with an initial deposit
by the Seller of $6,506,664. On each Subsequent
Transfer Date, cash or eligible investments
having a value approximately equal to 2.00% of
the aggregate Contract Value of the Subsequent
Receivables conveyed to the Trust on such
Subsequent Transfer Date will be withdrawn from
the Pre-Funding Account and deposited in the
Spread Account.
Amounts in the Spread Account on any Payment Date
(after giving effect to all distributions to be
made on such Payment Date) in excess of the
lesser of: (a) 2.00% of the Initial Pool
Balance and (b) the Note Balance will be
distributed to the Seller.
page 6
<PAGE>
Priority of Distributions.....Collections on the Receivables with respect to
each collection period will be applied on the
related Payment Date with respect to the
Distribution Amount in the priority indicated
below:
(i) if neither Case Credit nor an affiliate of
Case Credit is the Servicer, the servicing fee
for the prior collection period and any
overdue servicing fees to the Servicer,
(ii) the administration fee for the prior
collection period and any overdue administration
fees to Case Credit, as the administrator (the
"Administrator") of the Trust,
(iii) interest on the Class A Notes to the
holders thereof,
(iv) interest on the Class B Notes to the
holders thereof,
(v) the Class A Noteholders' Monthly Principal
Distributable Amount to the holders of the
Class A Notes (sequentially),
(vi) the Class B Noteholders' Principal
Distributable Amount to the holders of the
Class B Notes,
(vii) interest on the Certificates to the
holders thereof,
(viii) after the outstanding
balance of the Notes has been reduced to
zero, principal of the Certificates,
(ix) if Case Credit or an affiliate of Case
Credit is the Servicer, the servicing fee for
the prior collection period and any overdue
servicing fees to the Servicer, and
(x) the remaining balance, if any, to the
Spread Account.
As used herein:
"Distribution Amount" means, for a Payment Date,
the aggregate collections on Receivables
(including collections received after the end
of the preceding calendar month on any
Subsequent Receivables that were added to the
Trust after the end of that preceding calendar
month but on or prior to the Payment Date) with
respect to the related collection period
(including any liquidation proceeds and the
purchase amount of any Receivables repurchased
by the Seller or purchased by the Servicer)
plus investment earnings for such Payment Date
plus the withdrawal from the Negative Carry
Account for such collection period.
Tax Status....................It is contemplated that the Notes will be
characterized as debt for Federal income tax
purposes and the Trust will not be characterized
as an association (or a publicly traded
partnership) taxable as a corporation.
ERISA Considerations..........Subject to certain considerations, it is
contemplated that the Notes will be eligible
for purchase by employee benefit plans.
page 7
<PAGE>
Legal Investment..............It is contemplated that the A-1 Notes will be
eligible for purchase by money market funds
under paragraph (a)(9) of Rule 2a-7 under the
Investment Company Act of 1940, as amended.
Rating of the Notes...........It is a condition to the issuance of the Notes
that the A-1 Notes be rated in the highest
short-term rating category, that the A-2 Notes,
A-3 Notes and A-4 Notes be rated in the highest
long-term rating category and that the Class B
Notes be rated at least in the "A" category or
its equivalent, in each case by at least two
nationally recognized statistical rating
agencies. There can be no assurance that such
ratings will not be lowered or withdrawn by a
rating agency if circumstances so warrant.
Risk Factors..................Before making an investment decision, prospective
investors should consider the factors that will
be set forth under the caption "Risk Factors"
in the Prospectus Supplement and the Prospectus.
page 8
<PAGE>
For purposes of the data in the following tables, "Contract Value"
for each: (a) Standard Precomputed Receivable has been calculated as the
sum of (i) the present value of the future scheduled payments on such
Receivable as of the Initial Cutoff Date discounted monthly at an annual
rate equal to the adjusted APR of such Receivable and (ii) an amount
attributable to past due payments, and (b) precomputed simple rebate
Receivable has been deemed to equal the current balance plus accrued
interest of that Receivable shown on the Servicer's records as of the
Initial Cutoff Date.
<TABLE>
<CAPTION>
Composition of the Receivables Pool
as of the Initial Cutoff Date
Weighted
Average Weighted Weighted Average
APR of Aggregate Number of Average Average Contract
Receivables Contract Value Receivables Remaining Term Original Term Value
- ----------- -------------- ----------- -------------- ------------- --------
<S> <C> <C> <C> <C> <C>
8.758% $325,103,002.29 7,527 50.19 months 52.79 months $43,191.58
<CAPTION>
Distribution by APR of the Receivables Pool as of the Initial Cutoff Date
Percent of
Aggregate
Number of Aggregate Contract
APR Range Receivables Contract Value Value
- --------- ----------- -------------- --------
<S> <C> <C> <C>
3.00% to 3.99%.................................................. 197 $3,211,405.81 0.99%
4.00% to 4.99%.................................................. 42 5,023,731.24 1.55
5.00% to 5.99%.................................................. 446 9,815,988.35 3.02
6.00% to 6.99%.................................................. 320 8,966,273.74 2.76
7.00% to 7.99%.................................................. 765 19,138,186.74 5.89
8.00% to 8.99%.................................................. 2,331 151,063,818.58 46.46
9.00% to 9.99%.................................................. 1,475 75,360,254.02 23.18
10.00% to 10.99%.................................................... 1,494 38,279,715.13 11.77
11.00% to 11.99%.................................................... 262 8,168,629.97 2.51
12.00% to 12.99%.................................................... 93 3,439,056.47 1.06
13.00% to 13.99%.................................................... 79 1,849,550.68 0.57
14.00% to 14.99%.................................................... 18 428,818.60 0.13
16.00% to 16.99% ................................................... 3 92,452.29 0.03
17.00% to 17.99% ................................................... 2 265,120.67 0.08
----- -------------- ------
Total..................................................... 7,527 $325,103,002.29 100.00%
===== =============== ======
page 9
<PAGE>
<CAPTION>
Distribution by Equipment Type of the Receivables Pool
as of the Initial Cutoff Date
Percent of
Aggregate
Number of Aggregate Contract
Type Receivables Contract Value Value
- ---- ----------- -------------- ----------
<S> <C> <C> <C>
Agricultural
New............................................................ 2,099 $104,488,200.30 32.14%
Used........................................................... 2,902 111,403,293.72 34.27
Construction
New............................................................ 1,482 71,652,136.72 22.04
Used........................................................... 1,044 37,559,371.55 11.55
----- ------------- -----
Total..................................................... 7,527 $325,103,002.29 100.00%
===== =============== ======
<CAPTION>
Distribution by Payment Frequency of the Receivables Pool
as of the Initial Cutoff Date
Percent of
Aggregate
Number of Aggregate Contract
Frequency Receivables Contract Value Value
- --------- ----------- -------------- --------
<S> <C> <C> <C>
Annual(1)........................................................... 4,048 $188,919,100.62 58.11%
Semiannual.......................................................... 278 14,588,118.22 4.49
Quarterly........................................................... 58 1,600,321.82 0.49
Monthly............................................................. 3,143 119,995,461.63 36.91
----- -------------- -----
Total..................................................... 7,527 $325,103,002.29 100.00%
===== =============== ======
- ---------------------
(1) Approximately 35.93%, 9.08%, 2.11%, 1.84%, 1.14%, 0.67%, 0.92%, 1.56%,
10.05%, 1.60%, 4.56% and 30.52%, of the annual Receivables have scheduled
payments within the collection periods relating to the Payment Dates in
January, February, March, April, May, June, July, August, September,
October, November and December, respectively.
page 10
<PAGE>
<CAPTION>
Distribution by Current Contract Value of the Receivables Pool
as of the Initial Cutoff Date
Percent of
Contract Aggregate
Value Number of Aggregate Contract
Range Receivables Contract Value Value
--------- ----------- -------------- --------
<S> <C> <C> <C>
$ 0.00 to $ 4,999.99........................................ 471 $1,653,641.99 0.51%
5,000.00 to 9,999.99........................................ 925 6,999,243.64 2.15
10,000.00 to 14,999.99........................................ 868 10,807,361.59 3.32
15,000.00 to 19,999.99........................................ 742 12,896,064.36 3.97
20,000.00 to 24,999.99........................................ 480 10,694,980.05 3.29
25,000.00 to 29,999.99........................................ 412 11,251,297.49 3.46
30,000.00 to 34,999.99........................................ 364 11,818,545.72 3.64
35,000.00 to 39,999.99........................................ 355 13,292,514.78 4.09
40,000.00 to 44,999.99........................................ 299 12,706,828.89 3.91
45,000.00 to 49,999.99........................................ 257 12,185,844.41 3.75
50,000.00 to 54,999.99........................................ 285 14,916,804.18 4.59
55,000.00 to 59,999.99........................................ 229 13,146,850.62 4.04
60,000.00 to 64,999.99........................................ 196 12,221,692.95 3.76
65,000.00 to 69,999.99........................................ 158 10,683,255.50 3.29
70,000.00 to 74,999.99........................................ 166 12,016,871.47 3.70
75,000.00 to 99,999.99........................................ 625 54,038,211.14 16.62
100,000.00 to 199,999.99........................................ 611 77,924,232.89 23.96
200,000.00 to 299,999.99........................................ 56 13,721,861.87 4.22
300,000.00 to 499,999.99........................................ 23 8,487,982.99 2.61
500,000.00 to 699,999.99........................................ 2 1,056,338.18 0.32
700,000.00 to 899,999.99........................................ 1 703,274.48 0.22
900,000.00 to 1,099,999.00........................................ 2 1,879,303.10 0.58
----- --------------- ------
Total ........................................... 7,527 $325,103,002.29 100.00%
===== =============== ======
page 11
<PAGE>
<CAPTION>
Geographic Distribution of the Receivables Pool
as of the Initial Cutoff Date
Percent of Percent of
Aggregate Aggregate
Contract Contract
State(1) Value State(1) Value
- -------- ------------- -------- ----------
<S> <C> <C> <C>
Alabama........................................ 2.27% Nebraska................................. 3.76%
Alaska......................................... 0.33 Nevada................................... 0.60
Arizona........................................ 0.94 New Hampshire............................ 0.25
Arkansas....................................... 2.97 New Jersey............................... 0.67
California..................................... 2.59 New Mexico............................... 0.29
Colorado....................................... 2.10 New York................................. 1.95
Connecticut.................................... 0.33 North Carolina........................... 1.87
Delaware....................................... 0.48 North Dakota............................. 1.06
Florida........................................ 0.96 Ohio..................................... 3.04
Georgia........................................ 2.39 Oklahoma................................. 1.49
Hawaii......................................... 0.04 Oregon................................... 1.00
Idaho.......................................... 1.27 Pennsylvania............................. 1.71
Illinois....................................... 9.61 Rhode Island............................. 0.00
Indiana........................................ 3.54 South Carolina........................... 1.02
Iowa........................................... 8.42 South Dakota............................. 2.34
Kansas......................................... 2.48 Tennessee................................ 2.09
Kentucky....................................... 2.40 Texas.................................... 5.40
Louisiana...................................... 2.01 Utah..................................... 0.45
Maine.......................................... 0.37 Vermont.................................. 0.16
Maryland....................................... 0.75 Virginia................................. 0.99
Massachusetts.................................. 0.25 Washington............................... 2.02
Michigan....................................... 2.65 Washington, D.C.......................... 0.00
Minnesota...................................... 6.17 West Virginia............................ 0.24
Mississippi.................................... 2.86 Wisconsin................................ 2.27
Missouri....................................... 5.65 Wyoming.................................. 0.59
Montana........................................ 0.91 Total............................... 100.00%
======
- ------------
(1) Based upon billing addresses of the obligors.
</TABLE>
page 12
<PAGE>
Delinquencies, Repossessions, and Net Losses
Set forth below is certain information concerning Case Credit's
experience pertaining to the entire portfolio of United States retail
agricultural and construction equipment receivables that it services,
including receivables previously sold to trusts under prior asset-backed
securitizations. There can be no assurance that the delinquency,
repossession and net loss experience on the Receivables of the Trust will
be comparable to that set forth below.
Except as indicated, all amounts and percentages in the following
tables are based upon the gross amount scheduled to be paid on each retail
installment sale contract, including unearned finance and other charges.
The information in the following tables includes an immaterial amount of
retail installment sale contracts on equipment other than agricultural and
construction equipment and includes the receivables that remained with
Tenneco Credit Corporation and previously sold contracts that Case Credit
continues to service.
<TABLE>
<CAPTION>
Delinquency Experience
At December 31, At September 30,
----------------------------------------------------------------------------------- --------------------------------
1996 1995 1994 1993 1992 1997 1996
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
(Dollars in Millions)
Number Number Number Number Number Number Number
of of of of of of of
ContractsAmount ContractsAmount ContractsAmount ContractsAmount ContractsAmount ContractsAmount ContractsAmount
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Portfolio....135,211 $3,262.4 135,722 $3,093.1 128,891 $2,641.0 128,562 $2,434.0 138,711 $2,549.8 142,639 $3,462.3 133,781 $3,190.8
Period of
Delinquency
31-60 days.. 2,031 45.9 1,927 33.5 1,457 18.4 2,033 27.2 4,877 71.7 2,259 58.6 1,593 33.7
60 Days or
More...... 1,778 36.3 1,509 18.5 855 9.4 2,145 22.5 6,177 78.3 2,818 64.6 1,668 30.0
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Total
Delinquencies 3,809 $ 82.2 3,436 $ 52.0 2,312 $ 27.8 4,178 $ 49.7 11,054 $150.0 5,077 $123.2 3,261 $63.7
Total Delin-
quencies as
a Percent of
the
Portfolio... 2.8% 2.5% 2.5% 1.7% 1.8% 1.0% 3.2% 2.0% 8.0% 5.9% 3.6% 3.6% 2.4% 2.0%
<CAPTION>
Credit Loss/Repossession Experience
Nine Months
Year Ended December 31, Ended September 30,
--------------------------------------------------- ---------------------------
1996 1995 1994 1993 1992 1997 1996
---------- --------- --------- --------- -------- ----------- ------------
(Dollars in Millions)
<S> <C> <C> <C> <C> <C> <C> <C>
Average Gross Portfolio Outstanding
During the Period................ $3,155.5 $2,857.7 $2,511.2 $2,487.1 $2,512.7 $3,356.2 $3,128.8
Repossessions as a Percent of Average
Gross Portfolio Outstanding (4).. 1.07% 1.14% 1.33% 1.83% 2.68% 1.22% 1.17%
Net Losses as a Percent of
Liquidations(1)(2)(3)(4)......... 0.15% 0.22% 0.36% 0.61% 1.23% 0.31% 0.14%
Net Losses as a Percent of Average
Gross Portfolio Outstanding(1)(2)(4) 0.08% 0.11% 0.19% 0.31% 0.67% 0.17% 0.08%
</TABLE>
(1) A portion of the contracts provide for recourse to Dealers.
Approximately 24%, 27%, 25%, 22%, 22%, 22% and 27% of the aggregate
amounts scheduled to be paid on the contracts acquired during the nine
months ended September 30, 1997 and 1996 and the years ended December
31, 1996, 1995, 1994, 1993 and 1992, provide for recourse to Dealers
(excluding contracts which provide for recourse to Dealers through the
Dealers' reserve accounts). In the event of defaults by the obligor
under any such contract, the contract is required to be repurchased by
the Dealer for an amount generally equal to all amounts due and unpaid
thereunder. As a result, any losses under any such contract are
incurred by the Dealer and are not included in the net loss figures
set forth above.
page 13
<PAGE>
(2) Net losses are equal to the aggregate of the principal balances of all
contracts (plus accrued but unpaid interest thereon) that are
determined to be uncollectible in the period, less any recoveries on
contracts charged off in the period or any prior periods, excluding
any losses resulting from repossession expenses and excluding any
recoveries from Dealers' reserve accounts.
(3) Liquidations represent a reduction in the outstanding balances of the
contracts as a result of cash payments and charge-offs.
(4) Percentages have been annualized for the nine months ended September 30,
1997 and 1996, and are not necessarily indicative of the experience for
the year.
page 14
<PAGE>
WEIGHTED AVERAGE LIFE OF THE NOTES
The following tables indicates the projected weighted average life of
each Class of Notes and sets forth the percent of the initial principal
balance of each Class of Notes that is projected to be outstanding after
each of the Payment Dates shown at various constant prepayment rate ("CPR")
percentages.
<TABLE>
<CAPTION>
Percent of Initial Principal Amount of the Notes at Various CPR Percentages
A-1 Notes A-2 Notes
--------------------------------------- --------------------------------------
Payment Date 0% 13% 15% 17% 19% 0% 13% 15% 17% 19%
- ------------ ---- --- --- --- --- ---- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
February 1998................. 100 100 100 100 100 100 100 100 100 100
March 1998.................... 95 91 90 89 88 100 100 100 100 100
April 1998.................... 92 81 79 77 75 100 100 100 100 100
May 1998...................... 88 70 67 63 60 100 100 100 100 100
June 1998..................... 84 56 52 47 42 100 100 100 100 100
July 1998..................... 79 42 36 30 24 100 100 100 100 100
August 1998................... 73 28 21 14 6 100 100 100 100 100
September 1998................ 62 10 1 0 0 100 100 100 97 94
October 1998.................. 54 0 0 100 98 94 90 87
November 1998................. 44 100 91 87 83 79
December 1998................. 13 100 78 74 69 65
January 1999.................. 0 89 62 57 53 48
February 1999................. 81 50 46 41 36
March 1999.................... 73 40 35 30 25
April 1999.................... 67 33 27 22 17
May 1999...................... 64 28 22 17 12
June 1999..................... 62 24 18 13 7
July 1999..................... 60 20 14 8 2
August 1999................... 58 16 9 3 0
September 1999................ 54 10 4 0
October 1999.................. 51 6 0
November 1999................. 47 1
December 1999................. 36 0
January 2000.................. 21
February 2000................. 10
March 2000.................... 2
April 2000.................... 0
Weighted Average Life (years)(1) .6 .4 .4 .3 .3 1.6 1.1 1.1 1.0 1.0
- ----------------
(1) The weighted average life of a Note is determined by: (a) multiplying
the amount of each principal payment on the applicable Note by the
number of years from the date of issuance of such Note to the related
Payment Date, (b) adding the results and (c) dividing the sum by the
related initial principal amount of such Note.
page 15
<PAGE>
<CAPTION>
Percent of Initial Principal Amount of the Notes at Various CPR Percentages
A-3 Notes A-4 Notes
--------------------------------------- --------------------------------------
Payment Date 0% 13% 15% 17% 19% 0% 13% 15% 17% 19%
- ------------ ---- --- --- --- --- ---- --- --- --- ---
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
February 1998................. 100 100 100 100 100 100 100 100 100 100
March 1998.................... 100 100 100 100 100 100 100 100 100 100
April 1998.................... 100 100 100 100 100 100 100 100 100 100
May 1998...................... 100 100 100 100 100 100 100 100 100 100
June 1998..................... 100 100 100 100 100 100 100 100 100 100
July 1998..................... 100 100 100 100 100 100 100 100 100 100
August 1998................... 100 100 100 100 100 100 100 100 100 100
September 1998................ 100 100 100 100 100 100 100 100 100 100
October 1998.................. 100 100 100 100 100 100 100 100 100 100
November 1998................. 100 100 100 100 100 100 100 100 100 100
December 1998................. 100 100 100 100 100 100 100 100 100 100
January 1999.................. 100 100 100 100 100 100 100 100 100 100
February 1999................. 100 100 100 100 100 100 100 100 100 100
March 1999.................... 100 100 100 100 100 100 100 100 100 100
April 1999.................... 100 100 100 100 100 100 100 100 100 100
May 1999...................... 100 100 100 100 100 100 100 100 100 100
June 1999..................... 100 100 100 100 100 100 100 100 100 100
July 1999..................... 100 100 100 100 100 100 100 100 100 100
August 1999................... 100 100 100 100 96 100 100 100 100 100
September 1999................ 100 100 100 97 89 100 100 100 100 100
October 1999.................. 100 100 99 90 82 100 100 100 100 100
November 1999................. 100 100 92 84 75 100 100 100 100 100
December 1999................. 100 87 78 70 61 100 100 100 100 100
January 2000.................. 100 69 61 52 44 100 100 100 100 100
February 2000................. 100 56 48 40 32 100 100 100 100 100
March 2000.................... 100 45 37 30 22 100 100 100 100 100
April 2000.................... 94 37 29 22 14 100 100 100 100 100
May 2000...................... 90 33 25 17 9 100 100 100 100 100
June 2000..................... 88 29 21 13 5 100 100 100 100 100
July 2000..................... 85 25 16 8 1 100 100 100 100 100
August 2000................... 81 21 12 4 0 100 100 100 100 97
September 2000................ 76 15 7 0 100 100 100 99 93
October 2000.................. 72 11 2 100 100 100 95 89
November 2000................. 67 6 0 100 100 98 91 85
December 2000................. 52 0 100 95 89 83 77
January 2001.................. 33 100 83 78 72 67
February 2001................. 20 100 75 70 65 60
March 2001.................... 9 100 69 64 59 54
April 2001.................... 1 100 64 59 54 50
May 2001...................... 0 99 61 56 52 48
June 2001..................... 97 59 54 50 46
July 2001..................... 95 57 53 48 44
August 2001................... 92 55 50 46 42
September 2001................ 89 52 48 43 39
October 2001.................. 86 50 45 41 37
November 2001................. 83 47 43 39 35
December 2001................. 72 40 37 33 30
January 2002.................. 59 32 29 0 0
February 2002................. 51 0 0
March 2002.................... 44
April 2002.................... 39
May 2002...................... 38
June 2002..................... 37
July 2002..................... 36
August 2002................... 35
September 2002................ 33
October 2002.................. 31
November 2002................. 29
December 2002................. 0
Weighted Average Life (years)(1) 2.8 2.2 2.1 2.0 1.9 4.2 3.5 3.5 3.4 3.3
</TABLE>
- -----------
(1) The weighted average life of a Note is determined by: (a) multiplying
the amount of each principal payment on the applicable Note by the
number of years from the date of issuance of the Note to the related
Payment Date, (b) adding the results and (c) dividing the sum by the
related initial principal amount of the Note.
page 16
<PAGE>
Percent of Initial Principal Amount of the Notes
at Various CPR Percentages
Class B Notes
--------------------------------------
Payment Date 0% 13% 15% 17% 19%
- ------------ --- --- --- --- ---
February 1998................. 100 100 100 100 100
March 1998.................... 100 99 99 99 99
April 1998.................... 100 98 98 97 97
May 1998...................... 100 96 96 96 95
June 1998..................... 100 95 94 94 93
July 1998..................... 100 93 92 92 91
August 1998................... 100 91 91 90 89
September 1998................ 100 89 88 87 86
October 1998.................. 100 87 86 85 84
November 1998................. 100 85 84 83 81
December 1998................. 100 81 80 78 77
January 1999.................. 100 76 74 73 72
February 1999................. 82 72 71 69 68
March 1999.................... 79 69 67 66 64
April 1999.................... 77 67 65 63 62
May 1999...................... 77 65 63 62 60
June 1999..................... 76 64 62 60 58
July 1999..................... 75 63 61 59 57
August 1999................... 75 61 59 57 55
September 1999................ 73 59 57 55 53
October 1999.................. 72 58 56 54 52
November 1999................. 71 56 54 52 50
December 1999................. 68 53 51 49 47
January 2000.................. 63 49 47 45 43
February 2000................. 59 46 44 42 40
March 2000.................... 57 43 41 39 37
April 2000.................... 55 41 39 37 35
May 2000...................... 54 40 38 36 34
June 2000..................... 53 39 37 35 33
July 2000..................... 52 38 36 34 32
August 2000................... 52 37 35 33 31
September 2000................ 50 36 34 32 30
October 2000.................. 49 34 32 31 29
November 2000................. 48 33 31 29 27
December 2000................. 45 30 29 27 25
January 2001.................. 40 27 25 24 22
February 2001................` 37 24 23 21 20
March 2001.................... 34 22 21 19 18
April 2001.................... 32 21 20 18 17
May 2001...................... 31 20 19 17 16
June 2001..................... 31 20 18 17 16
July 2001..................... 30 19 18 16 15
August 2001................... 30 18 17 16 14
September 2001................ 29 18 16 15 14
October 2001.................. 28 17 15 14 13
November 2001................. 27 16 15 13 12
December 2001................. 24 14 13 12 11
January 2002.................. 20 12 11 0 0
February 2002................. 17 0 0
March 2002.................... 15
April 2002.................... 14
May 2002...................... 13
June 2002..................... 13
July 2002..................... 13
August 2002................... 12
September 2002................ 12
October 2002.................. 11
November 2002................. 11
December 2002................. 0
Weighted Average Life (years)(1) 2.6 2.1 2.0 1.9 1.9
- -------------
(1) The weighted average life of a Note is determined by: (a) multiplying
the amount of each principal payment on the applicable Note by the
number of years from the date of issuance of the Note to the related
Payment Date, (b) adding the results and (c) dividing the sum by the
related initial principal amount of the Note.
page 17
