BANKAMERICA <BAC> TO SECURITIZE CREDIT CARDS
BankAmerica Corp's Bank of America
unit said it will offer 300 mln dlrs in certificates
representing interests in a pool of receivables selected from
its California Classic Visa credit card accounts.
    The certificate rate is 8.2 pct. The offering price to the
public is 99.89 dlrs, resulting in a yield to certificate
holdes of 8.21 pct.
    The certificates have a provisional rating of Aaa by
Moody's Investors Service and are backed by a 30-mln-dlr
lettter of credit by Bayerische Vereinsbank AG, BankAmerica
said.
    The offering will be co-managed by Salomon Brothers Inc and
the bank.
    "Selling these loans provides a cost-effective source of
medium-term funds and allows the bank to leverage its existing
capital base across a broad range of activities," said Vice
Chairman and Chief Financial Officer Frank Newman.
    Bank of America said it will continue to service the loans
and maintain customer relationships, while the proceeds of the
offering can be used to fund new loans.
    BankAmerica said it pioneered securitization in 1977 with
home loans sold as mortgage pass-through certificates.
 Reuter
