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Pricing Supplement dated July 30, 1997 Rule 424(b)(3)
(To Prospectus dated July 8, 1996 and File No. 333-05701
Prospectus Supplement dated October 30, 1996)
ADVANTA CORP.
MEDIUM-TERM NOTES, SERIES D - FIXED RATE
===============================================================================
Principal Amount: $20,000,000 Interest Rate: 6.90%
Agent's Discount or Commission: $40,000 Stated Maturity Date: 08/04/99
Net Proceeds to Issuer: $19,941,600 Original Issue Date: 08/04/97
Issue Price: 99.9080% Trade Date: 07/30/97
===============================================================================
Interest Payment Dates: February 4, 1998 and the Cusip No.: 00756QEA2
4th day of each August
and February thereafter
Day Count Convention:
[X] 30/360 for the period from 08/04/97 to 08/03/99
[ ] Actual/360 for the period from to
[ ] Actual/Actual for the period from to
Redemption:
[X] The Notes cannot be redeemed prior to the Stated Maturity Date.
[ ] The Notes may be redeemed prior to the Stated Maturity Date.
Initial Redemption Date:
Initial Redemption Percentage:
Annual Redemption Percentage Reduction: ____% until Redemption
Percentage is 100% of the principal amount.
Optional Repayment:
[X] The Notes cannot be repaid prior to the Stated Maturity Date.
[ ] The Notes can be repaid prior to the Stated Maturity Date
at the option of the holder of the Notes.
Option Repayment Dates:
Repayment Price: ____%
Currency:
Specified Currency: United States Dollars
(If other than U.S. dollars, see attached)
Minimum Denominations:
(Applicable only if Specified Currency is other than U.S. dollars)
Original Issue Discount:
[ ] Yes [X] No
Total Amount of OID:
Yield to Maturity:
Initial Accrual Period:
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Form:
[X] Book Entry [ ] Certificated
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 100% of principal amount.
If as Agent:
The Notes are being offered at a fixed initial public offering price
of 99.9080% of principal amount.
[X] Other Provisions: Agent: PaineWebber Incorporated
RECENT DEVELOPMENTS
On March 17, 1997, the Company announced that it expects to report a
net profit for full-year 1997 of approximately $1.50 per share, which is well
below previous expectations. For the first quarter of 1997, the Company
reported a loss of $19.8 million, or $0.43 cents per share. On July 16, 1997,
the Company announced its return to profitability and reported net income of
$5.4 million, or earnings per share of $0.12, for the second quarter.
Beginning March 1997, in connection with the March 17, 1997
announcement described above, the various nationally recognized rating agencies
lowered their 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 the lowest investment grade level) by three of the rating agencies, but
is rated two levels below investment grade by Standard & Poor's and by Moody's
Investors Service.
The above-referenced interruption in the Company's historical pattern
of strong financial results reflects a number of factors, including continuing
increases in consumer bankruptcies and charge-offs and lower receivables
balances than originally anticipated in its credit card business. The Company
is pursuing a number of steps designed to return the Company to its historical
level of financial performance by increasing revenues and stemming credit card
losses. These steps include repricing certain segments of the credit card
portfolio, improving the Company's collection process, tightening underwriting
standards and developing new marketing programs. The Company's mortgage
financing, leasing and insurance businesses continue to perform well.
On March 17, 1997, the Company also announced that it has retained BT
Wolfensohn, a division of BT Securities Corporation, to explore all strategic
alternatives that build upon the historic strength and success of the Company
as a whole and of its business units with the aim of maximizing the Company's
value. The strategic alternatives that might be considered by the Company
include, but are not limited to, a strategic alliance with another company, an
alliance or initial public offering involving one or more of the
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Company's operating units, or a merger or sale involving the Company as a
whole. There is no assurance that any such event will occur.
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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. Significant risks and uncertainties include:
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; the level of delinquencies, customer bankruptcies, and
charge-offs; and the amount and rate of growth in the Company's expenses. The
Company's earnings also may be significantly affected by factors that affect
consumer debt, competitive pressures from other providers of financial
services, the effects of governmental regulation, the amount and cost of
financing available to the Company and its subsidiaries, the difficulty or
inability to securitize the Company's receivables and the impact of the ratings
of debt of the Company and its subsidiaries. Additional risks that may affect
the Company's future performance are set forth elsewhere in the Company's
filings with the Securities and Exchange Commission.
[ ] Salomon Brothers Inc
[ ] Bear, Stearns & Co. Inc.
[ ] CS First Boston
[ ] Donaldson, Lufkin & Jenrette
Securities Corporation
[ ] Merrill Lynch & Co.
