Huntington National Bank Offers $830 Million Deal, TALF Eligible
18 März 2009 - 7:31PM
Dow Jones News
Huntington National Bank is in the market with an $830 million
bond deal that is eligible for funding under the Federal Reserve's
program to jumpstart the consumer lending market.
Huntington's deal, backed by prime auto loans, is due to price
later this week, according to a person familiar with the deal.
This is the third deal announced since Tuesday that investors
can buy using funds from the Fed's Term Asset-Backed Securities
Loan Facility, or TALF.
Earlier Wednesday, Ford Motor Credit Co. issued a $2.954 billion
deal backed by auto receivables. On Tuesday, auto maker Nissan
(NSANY) said it will sell $1.5 billion of bonds backed by auto
receivables.
The Fed's $200 billion program, for which the central bank began
accepting applications Tuesday, is geared toward encouraging
issuance in the market of consumer loan-backed securities. This
market dried up during the financial upheaval that began last
fall.
The application deadline for the first round of financing
through TALF is Thursday, with disbursement funds due March 25.
Market participants expect more bond issuance in the coming
weeks.
-By Anusha Shrivastava, Dow Jones Newswires; 201-938-2371;
anusha.shrivastava@dowjones.com
(Liz Rappaport of The Wall Street Journal contributed to this
story)