SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported) December, 1996
Trans-World Insurance Company d/b/a Educaid (as Seller)
on behalf of ClassNotes Trust 1995-I (f/k/a
Education Loan Alliance 1995-I).
Trans-World Insurance Company d/b/a Educaid, as Seller
(Exact name of registrant as specified in its charter)
Arizona 33-89200 86-0255348
(State or other jurisdiction of (Commission (IRS Employer
incorporation) File Number) ID Number)
3301 C Street, Suite 100-M, Sacramento, California 95816
(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number,
including area code: (916) 446-5000
N/A
(Former name or former address, if changed since last report)
Item 5. Other Events
This Current Report on Form 8-K is being filed to file a copy of the
Computational Materials (as defined below) of Smith Barney Inc. and Credit
Suisse First Boston Corporation in connection with the issuance by Class Notes
Trust 1995-I of Asset Backed Notes. The term "Computational Materials" shall
have the meaning given in the No-Action Letter of May 20, 1994 issued by the
Securities and Exchange Commission (the "SEC") to Kidder, Peabody Acceptance
Corporation I, Kidder, Peabody & Co. Incorporated and Kidder Structured Asset
Corporation, as supplemented in the No-Action Letter of February 17, 1995 issued
by the SEC to the Public Securities Association.
<PAGE>
Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits.
(c) Exhibits
Exhibit No.
99.1 Computational Materials of Smith Barney Inc. and
Credit Suisse First Boston Corporation
<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 thereunto duly authorized.
CLASSNOTES TRUST 1995-I
(f/k/a EDUCATION LOAN ALLIANCE 1995-I)
By:
TRANS-WORLD INSURANCE COMPANY, Seller
By: /s/ Morton Dear
Name: Morton Dear
Title: Executive Vice President
of Trans-World Insurance
Company d/b/a Educaid
Dated: December 23, 1996
EXHIBIT INDEX
Exhibit Description of Exhibit
99.1 Computational Materials of Smith Barney Inc. and Credit Suisse First
Boston Corporation
STRUCTURAL TERM SHEET
ClassNotes Trust 1995-I
(f/k/a Education Loan Alliance 1995-I)
Series 1996-2
$145,250,000* LIBOR Rate Class A-9 Notes
Trans-World Insurance Company
d/b/a Educaid, a wholly-owned subsidiary of The Money Store Inc.
(Seller)
The Money Store Inc.
(Representative)
Underwriters: Smith Barney Inc. (Books)
CS First Boston
Expected Schedule: Pricing: December 19, 1996
Delivery: December 27, 1996
Dated Date: Date of Issuance
<TABLE>
<CAPTION>
Interest Expected
Expected Rate Expected Rating
Average (Expected Rate Interest Stated Pay Moody's/
Class Amount Life (1) Spread) Reset Price CAP Payment Maturity Date S&P
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
A-9 $145,250,000* 2.60 1 Month (monthly) 100 Available (monthly) 04/15/02* 07/15/98- Aaa/AAA
LIBOR + on the Funds on the 08/15/00
Margin 14th 15th
</TABLE>
(1) Assumes 7% CPR
Credit Enhancement: AMBAC Indemnity Corporation ("AMBAC") surety bond
Tax Status: Interest on the Notes is subject to federal and
state income taxes
Interest Configuration: Actual/360
Authorized Denominations: $50,000 and integral multiples thereof; Book Entry
only
ERISA Eligibility: Yes
<TABLE>
<CAPTION>
Debt Repayment Schedule
By Maturity (As of 12/15/96)
Notes & Certificates Index Principal Maturity
<S> <C> <C> <C>
Class A-7 1-Month LIBOR 124,350,000 03/15/01
Class A-9 1-Month LIBOR 145,250,000* 04/15/02*
Class A-1 7-Day Auction 44,400,000 04/01/13
Class A-2 7-Day Auction 54,000,000 04/01/14
Class A-3 7-Day Auction 54,500,000 04/01/15
Class A-5 7-Day Auction 93,000,000 04/01/16
Class A-6 28-Day Auction 99,000,000 04/01/17
Class A-8 28-Day Auction 51,000,000 04/01/18
Certificates 28-Day Auction 24,000,000 04/01/20
* Subject to Change
</TABLE>
<PAGE>
Trans-World/Educaid (Seller): Trans-World Insurance Company, an Arizona
Corporation, doing business as Educaid (the
"Seller"), is a wholly owned subsidiary of
The Money Store Inc., a New Jersey Corporation.
The Money Store is a diversified financial
service company headquartered in
Sacramento, California and Union, New Jersey.
Master Servicer: The Seller will act as Master Servicer with
respect to the Financed Student Loans and
generally will service the Financed Student
Loans during the In-School period.
Sub-Servicer: Pennsylvania Higher Education Assistance Agency,
an agency of the Commonwealth of Pennsylvania
("PHEAA") and AFSA Data Corporation ("AFSA"),
will service the Financed Student Loans
during the repayment period.
SUMMARY PORTFOLIO INFORMATION
Composition of the Financed Student Loans
Aggregate Outstanding Principal Balance $520,107,838
Number of Borrowers 102,617
Average Outstanding Principal Balance Per Borrower $5,068
Number of Loans 299,977
Average Outstanding Principal Balance Per Loan $1,734
Weighted Average Remaining Term (months) (not including
months remaining for in-school, grace, deferment, or
forbearance) 108
Weighted Average Remaining Term (months) (including
months remaining for in-school, grace, deferment, or
forbearance) 113
Weighted Average Borrower Interest Rate 7.98%
Weighted Average Annual Effective Rate 7.98%
The information contained herein concerning the financed student loans will be
superseded by the description of the financed student loans contained in
the prospectus supplement relating to this offering.
<PAGE>
SUMMARY PORTFOLIO INFORMATION - CONTINUED
<TABLE>
<CAPTION>
Distribution of the Financed Student Loans
Existing in the Trust Estate as of 11/30/96
Percent of
Number of Outstanding Outstanding
Distribution by: Loans Balance Loan Balance
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LOAN TYPE
Consolidated 608 $9,836,609 1.89%
PLUS 8,157 21,124,724 4.06%
SLS 130 234,961 0.05%
Stafford - Subsidized 224,787 371,320.998 71.39%
Stafford - Unsubsidized 66,295 117,590,546 22.61%
BORROWER PAYMENT STATUS
BORROWER PAYMENT STATUS
- --------------------------------------------------------------------------------------------------------------------
Deferment 7,258 $11,287,709 2.17%
Forbearance 8,639 17,511,959 3.37%
Grace 21,333 38,418,764 7.39%
Repayment 58,039 109,347,850 21.03%
In-School 203,013 341,082,690 65.58%
Claim 1,695 2,458,866 0.47%
INTEREST RATE
- --------------------------------------------------------------------------------------------------------------------
Less than 7.50% 13 $106,817 0.02%
7.50% to 8.49% 291,238 491,191,917 94.44%
8.50% to 9.49% 8,723 28,761,754 5.53%
9.50% or greater 3 47,350 0.01%
DATE OF DISBURSEMENT
- --------------------------------------------------------------------------------------------------------------------
Before 10/01/93 511 $603,527 0.12%
10/01/93 & After 299,466 519,504,311 99.88%
GEOGRAPHIC LOCATION
- --------------------------------------------------------------------------------------------------------------------------
California 115,412 $203,564,489 39.14%
Florida 64,107 106,286,873 20.44%
Texas 29,942 56,600,519 10.88%
New Jersey 38,003 55,610,969 10.69%
New York 12,862 25,262,587 4.86%
Other 39,651 72,782,401 13.99%
GUARANTOR
- --------------------------------------------------------------------------------------------------------------------------
California Student Aid 109,556 $187,578,176 36.07%
Commission
United Student Aid Funds 43,966 92,860,084 17.85%
FL Office of Student Financial 51,013 79,473,580 15.28%
Aid
NJ Higher Education Assistance 39,238 56,999,360 10.96%
TX Guaranteed Student Loan Corp 24,711 42,255,214 8.12%
Other 31,493 60,941,424 11.72%
- --------------------------------------------------------------------------------------------------------------------------
Portfolio Totals: 299,977 $520,107,838 100.00%
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
The information contained herein concerning the financed student loans will be
superseded by the description of the financed student loans contained in
the prospectus supplement relating to this offering.
<TABLE>
<CAPTION>
Table I
ClassNotes Trust 1995-I
Series 1996-2
$140,000,000 LIBOR Floating Rate Class A-9 Notes
.08% Discount Margin Table
Assumptions*
Discount Margin Table
<S> <C> <C> <C> <C> <C>
Price 5% CPR 7% CPR 9% CPR Size $140,000,000
99 60/64 10.4 10.6 10.7 Spread 0.080%
99 61/64 9.8 9.9 10.1 1 Month LIBOR 5.625%
99 62/64 9.2 9.3 9.4 Assumed Coupon 5.705%
99 63/64 8.6 8.6 8.7 Day Count Actual/360
100 8.0 8.0 8.0 Delay Days 0
100 1/64 7.4 7.3 7.3 Settlement Date 12/27/96
100 2/64 6.8 6.7 6.6 First Payment Date 1/15/97
100 3/64 6.2 6.1 5.9 Legal Final 4/15/02
100 4/64 5.6 5.4 5.2
WAL 2.82 2.58 2.41
* Preliminary, subject to change. Based on preliminary portfolio
characteristics. Actual portfolio characteristics may vary.
Table constructed December 18, 1996.
Smith Barney Inc. believes that the information contained in this report
has been obtained from reliable sources, but does not guarantee its accuracy.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Table I
ClassNotes Trust 1995-I
Series 1996-2
$145,250,000 LIBOR Floating Rate Class A-9 Notes
.08% Discount Margin Table
Assumptions*
Discount Margin Table
<S> <C> <C> <C> <C> <C>
Price 5% CPR 7% CPR 9% CPR Size $145,250,000
99 60/64 10.4 10.6 10.7 Spread 0.080%
99 61/64 9.8 9.9 10.1 1 Month LIBOR 5.615%
99 62/64 9.2 9.3 9.4 Assumed Coupon 5.725%
99 63/64 8.6 8.6 8.7 Day Count Actual/360
100 8.0 8.0 8.0 Delay Days 0
100 1/64 7.4 7.3 7.3 Settlement Date 12/27/96
100 2/64 6.8 6.7 6.6 First Payment Date 1/15/97
100 3/64 6.2 6.1 5.9 Legal Final 4/15/02
100 4/64 5.6 5.4 5.2
WAL 2.82 2.58 2.41
* Preliminary, subject to change. Based on preliminary portfolio
characteristics. Actual portfolio characteristics may vary.
Table constructed December 18, 1996.
Smith Barney Inc. believes that the information contained in this report
has been obtained from reliable sources, but does not guarantee its accuracy.
</TABLE>
<TABLE>
<CAPTION>
Table II
ClassNotes Trust 1995-I
Series 1996-2
$145,250,000 LIBOR Floating Rate Class A-9 Notes"
.09% Discount Margin Table
Assumptions*
Discount Margin Table
<S> <C> <C> <C> <C> <C>
Price 5% CPR 7% CPR 9% CPR Size $145,250,000
99 60/64 11.4 11.6 11.7 Spread 0.090%
99 61/64 10.8 10.9 11.1 1 Month LIBOR 5.645%
99 62/64 10.2 10.3 10.4 Assumed Coupon 5.735%
99 63/64 9.6 9.6 9.7 Day Count Actual/360
100 9.0 9.0 9.0 Delay Days 0
100 1/64 8.4 8.3 8.3 Settlement Date 12/27/96
100 2/64 7.8 7.7 7.6 First Payment Date 1/15/97
100 3/64 7.2 7.1 6.9 Legal Final 4/15/02
100 4/64 6.6 6.4 6.2
WAL 2.81 2.60 2.41
* Preliminary, subject to change. Based on preliminary portfolio
characteristics. Actual portfolio characteristics may vary.
Table constructed December 18, 1996.
Smith Barney Inc. believes that the information contained in this report
has been obtained from reliable sources, but does not guarantee its accuracy.
</TABLE>
<PAGE>
The above analysis is not intended to be a prospectus and any investment
decision with respect to the security should be made by you based solely upon
all of the information contained in the final prospectus. Under no circumstances
shall the information presented constitute an offer to sell or the solicitation
of an offer to buy nor shall there by any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of such jurisdiction.
The securities may not be sold nor may an offer to buy be accepted prior to the
delivery of a final prospectus relating to the securities. The above preliminary
description of the underlying assets has been provided by the issuer and has not
been independently verified by CS First Boston. All information described above
is preliminary, limited in nature and subject to completion or amendment. CS
First Boston makes no representation that the above referenced security will
actually perform as described in any scenario presented.
