ABFS Prices $120MM Deal

American Business Financial Services Inc., Bala Cynwyd, Pa., has priced a $120 million securitization through its three main subsidiaries: American Business Credit Inc., New Jersey Mortgage and Investment Corp., and Upland Mortgage.ABFS Mortgage Loan Trust 1998-2, backed by business and home equity loans, is structured as a real estate mortgage investment conduit consisting of six Class A securities and a 1.5% overcollateralization account, the company said. The $38.7 million of Class A-1 certificates were priced at 5 basis points above the one-month London Interbank Offered Rate. The initial coupon will be set before the deal closes. (The expected settlement date is June 18.) The other five classes were priced at spreads ranging from 57 to 120 bp over related Treasury notes and yields ranging from 6.139% to 6.872%. All bore issue prices of 100. The transaction was underwritten by Prudential Securities Inc. and will be insured by Financial Security Assurance Inc., ABFS said.