NextCard, Inc. , the No. 1 Internet credit card, announced it has closed a $150 million asset-backed facility arranged by Chase Securities, Inc., the investment banking subsidiary of Chase Manhattan Bank. The asset-backed commercial paper facility will be used to fund credit card receivables at competitive commercial paper-based interest rates. This financing follows the recent completion of a $150 million increase in the facility provided by Barclays Capital. In total, NextCard has raised approximately $1 billion in asset-backed commercial paper facilities over the past year.
In addition to the larger funding capacity available through multiple conduit providers, NextCard(R) has also successfully built its ability to raise funds through NextBank, a wholly owned banking subsidiary. Year to date, NextBank has raised over $250 million in FDIC-insured Certificates of Deposits, with maturities ranging from 3 months to 2 years. “We continue to enhance the diversity, size and quality of our funding sources,” said John Hashman, Chief Executive Officer of NextCard, Inc. “This $1.25 billion in available funding is combined with a cash position of nearly $200 million. These funding sources are an important component of NextCard’s overall business strategy and will support our continued growth.”
NextCard, Inc. ([www.nextcard.com]) is the No. 1 Internet credit card and the most visited financial services Web site. Launched in 1997, the company was the first to offer instant online credit card approval, a choice of customized credit card offers, personalized PictureCard(SM) designs, and exceptional online customer service. NextCard is committed to providing the most robust consumer shopping experience on the Internet and has continued to innovate with its complete GoShopping!(SM) service, NextCard Concierge(SM) one-click shopping assistant, online bill payment services, and comprehensive rewards program. NextCard is also one of the leading direct marketers on the Internet, operates a network of more than 60,000 online affiliates, and has exclusive card relationships with leading brands, including Amazon.com and MyPoints.com. NextCard owns a minority stake in Flooz.com, the premier online gift currency, and PayTrust, a leading service that lets consumers receive, review, pay and organize all of their bills online. NextCard was named the No. 1 online credit card in 2000 by Gomez Advisors, was ranked the No. 1 credit card that Internet consumers would consider for use (according to ZDNet’s 1999 BrandIQ study), and was nominated for a 2000 Webby Award in the finance category. NextBank N.A. is a wholly-owned subsidiary of NextCard, Inc.