Despite selling off its credit card business and winding down its auto leasing operations, Springhouse, Pa.-based Advanta Corp. remains a factor in the asset-backed securities market and has plans for another securitized debt offering in the next couple of months.
A source close to the deal said details are still to be worked out, including the amount of the offering, but the expectation was somewhere between $100 million and $300 million "in the next few months." The company has yet to name an investment banker for the sale.
The source said the proceeds would be used to finance Advanta's small-ticket lease transactions business. The unit arranges customer financing for items such as office copiers and telephone systems.
After the consolidation of its operations and some executive changeups, the company's largest business component remains its non-conforming mortgage loan business, which is now the beneficiary of regular quarterly mortgage-backed securities offerings.
Advanta also has a small business credit card lending operation, the only leftover after the firm sold its credit card operations to Fleet Bank several months ago.
Following its exit from auto leasing earlier this year, there had been some talk as to whether the portfolio would be sold or simply wound down.
- David Feldheim