Providian Financial Corp. launched four deals from its new de-linked credit card ABS trust last week, the first since Washington Mutual Inc. announced it would take over the company and its $18 billion credit card portfolio. All four single tranche were upsized and priced in-line with guidance.

The three-year deal, out of the Providian Series Notes trust, was comprised of four separate de-linked tranches. Initially slated at $732 million early in the week, the deal grew to nearly $915 million by closing Wednesday. The triple-A series 2005-A1 tranche priced at six basis points over one-month Libor, on the inner rim of guidance and in-line with industry averages, while the double-A-rated series 2005-M1 tranche priced at 17 basis points over one-month Libor. The single-A-rated series 2005-B1 priced at 30 basis points over one-month Libor, and the triple-B-rated series 2005-C1 priced at 55 basis points over one-month Libor, both in-line with guidance.

Frequent ABS issuers such as Chase Manhattan Bank, N.A., Capital One Financial, Citibank, N.A. and MBNA America Bank all use de-linked structures to issue credit card ABS. Some credit de-linked issuance trusts are pushing the credit card sector toward more corporate bond-like pricing levels.

Prior to last week, Providian's most recent deal came last November, a $500 million offering from its Gateway Master Trust that priced a triple-A-rated three-year tranche at 13 basis points over one-month Libor. The current deal's comparatively tight pricing already reflects Providian's improved standing with WaMu as a corporate parent. "Providian obviously is going to get much better pricing in the ABS market from here out," said one source.

(c) 2005 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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