Provident Bank is gearing up for a busy six months, as the Cincinnati-based bank looks to issue $2.4 billion in six deals that will tap both its home equity loan and leveraged lease-backed auto programs via securitization, and its credit-card and small-ticket equipment lease collateral through its conduits. Lehman Brothers, the bank's HEL underwriter since Provident began securitizing home-equity deals in 1996, will lead a $500 million offering that is expected in September.
Prudential Securities Inc. will also be involved, as it has participated in each Provident securitization for the past year. The deal will receive a wrap from MBIA Inc., the company's long-time insurer. Provident's subprime home equity program is quarterly, and the bank's largest, said Tayfun Tuzun, a senior vice president at the company. "We securitize everything we originate in that program," he said. Tuzun said Provident typically securitizes in the last month of each quarter for both its HEL and auto programs, but said that because of Y2K issues, the bank will likely launch its fourth quarter deals earlier than usual. "I think going earlier in the fourth quarter is a real possibility," Tuzun said, "and maybe mixing it a little bit with prefunding in the third quarter and delivering the loans in the fourth."