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First Union Institutional Debt Management Closes $545 Million Private Placement First of 1999 ELC Series Oversubscribed CHARLOTTE, NC - First Union Institutional Debt Management, Inc. (IDM) has closed a $545 million private placement of collateralized loan obligation (CLO) securities. Named ELC (Evaluated Loan Collateral) CDO Series 1999-I, the placement is IDM's second transaction since the unit's formation last year and brings the total of transactions completed to $975 million. Mark Mahoney, president of IDM, attributed the oversubscription of the transaction to an expanding investor base and their confidence in First Union as sponsor and asset manager. IDM was formed last year to capture a share of the growth in the CLO and asset-backed securities marketplace. ELC 1999-I was structured and led by First Union Capital Markets Corp., Chase Securities Inc. and Chase Manhattan International Limited. Investor participation included 46 international and domestic institutional investors. The placement consists of securities issued by ELC (Cayman) Ltd. CDO series 1999-I collateralized by a highly structured, rated pool of corporate loans. The different securities offered allow investors to make investments in those classes of securities that best match their risk/return investment criteria. IDM is serving as collateral manager for ELC CDO Series 1999-I. First Union's Capital Management Group manages $153 billion in assets for individuals and institutions ranging from retail mutual funds to institutional pension plans. The group's business units include: Women's Financial Advisory Services; Corporate and Institutional Trust; the Evergreen Funds; First Capital Group; First Investment Advisors; First Union Insurance Group; Pension Services; Personal Trust; the Private Client Group; the Retail Investment Group including IRA and CAP, the nation's first bank-based asset management account; First Union Brokerage Services, Inc.; Wheat First Union and First Clearing Corp. On April 26, First Union announced a definitive agreement to acquire Chicago-based Everen Capital Corporation. Charlotte-based First Union Corporation (NYSE: FTU) is a leading financial services company with assets of $223 billion at March 31, 1999. Ranked as the nation's sixth largest bank and ninth largest brokerage affiliation, it serves 16 million customers who can access account information and purchase financial products at 2,400 retail offices, 3,500 automated teller machines, through the Internet at www.firstunion.com, or by calling First Union Direct at 1-800-ASK-FUNB. Facts about ELC Series 1999-I Rating Agencies: S&P and Fitch Pricing 5/4 Closing 5/17 Trustee: State Street Bank and Trust Underwriters: First Union Capital Markets and Chase Securities, Inc. (80/20) Legal Counsel: Mayer, Brown and Platt Accountants: KPMG |
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