As automotive deals continue to shine, Union Acceptance Corp. is gearing up to potentially come to market once more in 1999. If conditions are right the company would price a $300 million to $360 million auto loan-backed deal sometime this month, said a source at the company.

"It seems like the market is a little better than most people thought it would be at this time," said the source. "The spreads seem to be tightening up. However, we're still in the evaluation stage at this time."

The multi-tranched deal would be managed by Banc of America Securities LLC, with Bear, Stearns & Co. as co-manager. According to the source, the transaction will look similar to previous UAC deals.

UAC last came to market in August with a five-part, $364 million offering that featured a financial guaranty from MBIA. The average lives ranged from 5.5 years to just over seven years. Bear Stearns was lead manager.

Union Acceptance Funding Corp., a subsidiary of UAC, renewed its credit facility with Bank of America in September, raising its borrowing potential to $500 million through its conduit, Enterprise Funding Corp.

Alternatively, if market conditions don't remain favorable, UAC would forgo a public securitization and continue selling into its conduit facility, the source said.

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