Press Releases

The student loans were sold by First Union National Bank, a subsidiary of First Union Corp. First Union Capital Markets Corp., the investment banking subsidiary of First Union Corp., served as lead manager on the transaction.

"We are extremely pleased by the success of this transaction as it underlines our growth in the asset-backed market and our continuing commitment to asset securitization as an alternative balance sheet management vehicle," said Brian Simpson, managing director of First Union Corp.'s Structured Products and Real Estate Group.

"This transaction is a reflection of our focus on the educational loan finance market, and we anticipate completing more transactions of this type," said Al Bush, director of student loan finance within the Structured Products and Real Estate Group.

The $391.4 million in senior notes were rated "Aaa" by Moody's and "AAA" by Fitch. The $14.2 million subordinated certificates were rated "A3" by Moody's and "A" by Fitch.

The loans are federally guaranteed through the U.S. Department of Education and are predominately in repayment status. First Union will serve as master servicer and administrator.

First Union Corp. provides a full range of capital markets products and services including asset-backed securities, real estate finance, public finance, syndicated loans, merger and acquisition advisory, private placements and high-yield finance.

First Union has grown its capital markets business substantially over the last three years. In 1996, First Union Capital Markets reported a 75 percent increase in fee income to $464 million from 1995 and a 46 percent increase in pretax net income to $422 million.

Charlotte-based First Union Corp. is the nation's sixth-largest bank holding company with assets of $143 billion as of June 30, 1997. The company serves approximately 12 million customers throughout the East Coast and nation.

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