The market was pleasantly surprised by last week's series 2004-A pricing from the Providian Financial Gateway Master Trust. The transaction was also Providian's first-ever Gateway offering with a senior/subordinate structure - and it featured the first natural double-A rated class ever in the credit card sector. While many gauged the market reception, particularly the double-A rated B class, the phenomenon is unlikely to spread throughout the sector, sources said.
"This structure is certainly not typical but it was a huge success for Providian," said Brian Wiele, U.S. syndicate head at Deutsche Bank Securities, which led the transaction. "But this structure is not necessarily for all issuers," he added. Wiele noted the deals increase to $750 million from $500 million and pricing levels inside of initial guidance.