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Pricing Supplement No. 33 dated October 31, 1997 Rule 424(b)(3)
(To Prospectus dated July 8, 1996 and File No.333-05701
Prospectus Supplement dated August 7, 1997)
ADVANTA CORP.
VALUE NOTES (SM), SERIES A - FIXED RATE
================================================================================
Cusip No.: 00757GBJ7 Interest Rate: 7.25%
Aggregate Principal Amount: $276,000.00 Maturity Date: 11/05/2002
Total Agents' Discount or Commission: $3,450.00 Issue Date: 11/05/97
Net Proceeds to Issuer: $272,550.00 Trade Date: 10/31/97
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<TABLE>
<CAPTION>
Agent's Net
Discount or Proceeds
Name of Agent Principal Amount Commission to Issuer
----------- --------- -----------
<S> <C> <C> <C>
Legg Mason Wood Walker, Incorporated $121,000.00 $1,512.50 $119,487.50
Sage Rutty & Co. $155,000.00 $1,937.50 $153,062.50
</TABLE>
Interest Payment Dates: December 15, 1997 and the 15th day of each succeeding
calendar month through and including October 15, 2002
and on the Maturity Date; provided however, that if this
Note is redeemed, in whole or in part, at the option of
the Company prior to the Maturity Date, the final
Interest Payment Date with respect to the principal
amount so redeemed shall be the Redemption Date (as
defined herein).
Day Count Convention:
[X] 30/360 for the period from 11/05/97 to 11/04/2002
Redemption:
[ ] The Notes cannot be redeemed prior to the Stated Maturity Date.
[X] The Notes may be redeemed, in whole or in part, prior to the
Stated Maturity Date. Initial Redemption Date: November 15, 1999
Initial Redemption Percentage: 100% Annual Redemption Percentage
Reduction: 0%. See "Other Provisions" below.
Form: [X] Book Entry
Agent acting in the capacity as indicated below:
[X] Agent [ ] Principal
If as Principal:
[ ] The Notes are being offered at varying prices related to
prevailing market prices at the time of resale.
[ ] The Notes are being offered at a fixed initial public offering
price of ____% of principal amount.
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If as Agent:
The Notes are being offered at a fixed initial public offering price of
100% of principal amount.
[X] Other Provisions: This Note may be redeemed, in whole or in part, by the
Company on November 15, 1999 (the "Initial Redemption
Date") and on any Interest Payment Date thereafter
(each, a "Redemption Date"), on written notice given not
more than 60 nor less than 30 days prior to such
Redemption Date. In the event of any such redemption by
the Company, the Redemption Price shall be 100% of the
principal amount of this Note so redeemed.
RECENT DEVELOPMENTS
On October 28, 1997, Advanta Corp. (the "Company") announced that it has
reached a definitive agreement under which Fleet Financial Group ("Fleet") will
acquire the Company's consumer credit card business and will combine it with
Fleet's consumer credit card business. The Company will continue to operate its
mortgage and business services companies.
The Company intends to seek shareholder approval and the transaction is
subject to regulatory approval. The transaction, which is expected to close by
late 1997 or early 1998, is anticipated to have a total value to the Company of
approximately $1.3 billion, including an after tax gain of approximately $500
million.
The Company also announced that it intends to make a tender offer to
repurchase between $750 to $850 million of the Company's common stock in 1998,
following the closing of the transaction. The Company presently expects the
tender offer to be at a price between $40 and $45 per share. Following the
tender offer, the Company will be well-capitalized with a book value of
approximately $650 million. The Company will have combined managed assets of
$8.4 billion and an additional $10.3 billion of mortgage contracts serviced for
a total of $18.7 billion.
The Company also announced that Dennis Alter will resume his long-held
position as Chief Executive Officer of Advanta. Alex "Pete" Hart, former Chief
Executive Officer, and Jim Allhusen, Group Executive of Advanta Personal Payment
Services, are leaving to pursue other interests.
On October 28, 1997, in connection with the Company's announcement
described above, Moody's Investors Service lowered its ratings of the Company's
debt securities. As of the date of this Pricing Supplement, senior debt of the
Company is rated investment grade (at or above investment grade level) by three
of the nationally recognized rating agencies, but is rated two levels below
investment grade by Standard and Poor's and three levels below investment grade
by Moody's Investors Service.
This Pricing Supplement contains forward-looking statements, including
but not limited to projections of future earnings, that are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those projected. The most significant among these risks and uncertainties
are: (1) the Company's managed net interest margin, which in turn is affected by
the Company's success in originating new credit card accounts, the receivables
volume and initial pricing of new accounts, the impact of repricing existing
accounts and account attrition, the mix of account types and interest rate
fluctuations; (2) the level of delinquencies and charge-offs; and (3) the level
of expenses. Earnings also may be affected by factors that affect consumer debt,
competitive pressures and the ratings on debt of the Company and its
subsidiaries. The transaction described herein also may be affected by factors
which include the timing of closing as well as contingencies. The proposed
tender offer also may be affected by factors which include the closing of the
transaction and the price at which the Company's stock is trading at the time of
the proposed tender offer. Additional risks that may affect the Company's future
performance are detailed in the Company's filings with the Securities and
Exchange Commission, including its most recent Annual Report on Form 10-K and
its Quarterly Reports on Form 10-Q.
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[ ] PaineWebber Incorporated
[X] Legg Mason Wood Walker, Incorporated
[X] Sage Rutty & Co.
