A roadshow is scheduled for this week to promote the first offering from a new private-label credit card master trust of Household International Inc., with pricing scheduled for the week of July 30, sources close to the deal said. Rumored for a year and a half, this marks Household's first foray into the private-label sector since 1992, it was added.

Preliminary indications are that the issue will be approximately $1 billion in size with three-year, fixed- and floating-rate classes, although details could change before the deal is officially unveiled. Credit Suisse First Boston has been named lead manager for the offering.

Sources away from the deal noted Household's absence from the private-label sector was due to difficulties the issuer had replenishing new receivables in the old trust. This new trust is an improvement, offering the issuer additional flexibility to replenish the pool. Previously using a classic revolving credit card note trust, Household found that once balances were paid, the cards got little use.

"The receivables were big ticket, one-time purchases, mostly furniture," one analyst away from the deal said. "Once you spend your $1000 on a new leather couch, there isn't much need to use that card for some time."

As for the collateral of the upcoming deal, buyside sources have been impressed with the chargeoff rates of the portfolio, said to be below the industry standard. "Delinquencies are respectable for private-label collateral," one investor said.

Household handles the business of numerous retail chains around the country, with a portfolio of up to $10 billion in receivables, rating agency sources noted. Shelf capacity for the new trust totals $3 billion, according to the HRSI Funding Inc. II S-3 registration amended July 13 with the Securities & Exchange Commission.

As for what context this deal is viewed in by the buyside, most investors see this offering pricing close to outstanding paper issued by retailer Sears Roebuck & Co., which last sold three-year floating-rate paper May 31 at a level of 11 basis points over one-month Libor.

In addition to ramping up its private-label business, Household is an active participant in the ABS market, having recently priced auto loan- and bank credit card-backed deals. Household last issued its Affinity card trust in September 1998. This experience as an issuer and servicer, as well as the issuer's single-A credit rating and $90 billion of assets under Household's management, are seen helping the deal.

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