Advanta Corp. is gearing up for the third quarter with two wrapped home equity loan transactions that should total upwards of $750 million.
One deal will be a $500 million offering that will be issued from the lender's closed-end HEL program. Salomon Smith Barney is expected to lead this transaction in keeping with Advanta's tradition of alternating between Salomon and Morgan Stanley Dean Witter on these types of HEL offerings.
The other will be a $250 million transaction from Advanta's home-equity line of credit vehicle, and will be led by Bear, Stearns & Co.
The deals will launch most likely in August as both programs have securitized in the middle month of each quarter recently.
MBIA Inc. is likely to provide guarantys on the bonds as it has insured a majority of Advanta's transactions, including the most recent two. However, Ambac could be a potential participant as well, since it wrapped some of the bank's deals as recently as last fall.
Advanta has issued $21.9 billion of issuance and completed 55 deals since first accessing the market in 1993.
Its last deal priced in May. - SK