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First Union Institutional Debt Management Closes $550 Million Private Placement; Brings Asset Total to $1.5 Billion CHARLOTTE, NC - First Union Institutional Debt Management, Inc. (IDM) has closed a $550 million private placement of collateralized debt obligation (CDO) securities managed by IDM and, as to high-yield securities, advised by American General Investment Management, L.P. (AGIM). Named ELC (Cayman) CDO Series 1999-II, it is the first CDO for IDM to include high-yield debt in the collateral pool. ELC 1999-II was structured and sold by First Union Capital Markets Corp., with Bear, Stearns & Co. Inc. as co-agent. IDM is serving as collateral manager General with AGIM managing the high-yield assets for ELC Series 1999-II. The securities issued by ELC 1999-II are collateralized by highly structured, rated pools of senior corporate loans and high-yield bonds. IDM President Mark Mahoney said AGIM's credit-based management philosophy in public high yield bonds will complement IDM's fundamental credit approach in building the bank loan portfolio. This placement is IDM's third transaction since the unit's formation in August 1998 as part of the Capital Management Group, and brings IDM's assets under management to $1.5 billion. IDM was formed to capture a share of the growth in the CLO and asset-backed securities market. Investor participation included international and domestic institutional investors. AGIM is wholly owned by American General Corporation (AGC), one of the largest financial services companies and insurance organizations in the U.S. with $110 billion in assets and approximately $19 billion in market capitalization as of June 30, 1999. First Union's Capital Management Group manages $164 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. First Union Capital Markets Corp. is a separate broker-dealer, non-bank affiliate of First Union Corp. (NYSE: FTU). The firm offers M&A advisory services through its Bowles Hollowell Conner division. First Union Capital Markets Corp. provides a full range of investment banking products and services including equity underwriting, investment grade and high-yield debt finance, private placements, loan syndications and asset-backed finance. First Union Capital Markets Corp. is a member of the New York Stock Exchange, Inc., the National Association of Securities Dealers, Inc. and the Securities Investor Protection Corp. First Union (NYSE:FTU) is a leading provider of financial services to more than 16 million customers throughout the East Coast and the nation. At June 30, 1999, First Union had assets of $230 billion and total stockholders' equity of $16 billion. The company operates full-service banking offices in Connecticut, Delaware, Florida, Georgia, Maryland, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia and Washington, D.C. Note: The securities referred to herein have not been and will not be registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act. All of such securities have been sold and this press release does not constitute and offer to sell or the solicitation of an offer to buy any of the securities. |
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