First North American National Bank, a Circuit City Corp. banking subsidiary, last week filed to issue up to $1 billion in asset-backed securities with the Securities & Exchange Commission.
FNANB has not brought a bankcard deal since 1998, according to Thomson Financial. The securities off this shelf would not be backed by the usual Circuit City store card receivables, but by Visa and MasterCard general purpose accounts originated by FNANB. The filing also draws a distinction between the FNANB bankcard product and Circuit City’s new co-branded hybrid, called the Circuit City PLUS Visa, which will not be securitized in this trust.
As of the filing date, FNANB had about $1.5 billion in bankcard receivables. The bank’s most recent deal, $600 million in size, priced in late 1998 via Nations Bank Montgomery, which has since merged with Bank of America.
Circuit City last brought its store card portfolio to market in April, with a $300 million deal managed by Banc of America Securities. Though the company did not come to term with its card program in 2001, it hit the market twice the prior year. Also, Circuit City subsidiary The CarMax Group has regularly issued auto loan backed deals through an issuance vehicle of Wachovia Securities (Pooled Auto Securities Shelf). Circuit City recently announced its intention to spin off CarMax, however.
