SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
October 17, 2000
Date of Report ..............................................................
(Date of earliest event reported)
CARCO Auto Loan Master Trust
Chrysler Financial Receivables Corporation
DaimlerChrysler Wholesale Receivables LLC
..............................................................................
(Exact name of registrant as specified in its charter)
State of Delaware 333-38873 and 33-55795 None
...............................................................................
(State or other jurisdiction (Commission) (IRS Employer
of incorporation) File No.) Identification No.)
27777 Franklin Rd., Southfield, Michigan 48034
..............................................
(Address of principal executive offices)
(248) 512-3990
Registrant's telephone number, including area code...........................
This filing relates to Registration Statement Nos. 333-37882, 333-37882-01 and
333-37882-02.
Item 5. Other Events.
------------
In connection with the proposed offering of CARCO Auto Loan Master Trust
Floating Rate Auto Loan Asset Backed Certificates, Series 2000-B, attached as
Exhibit 99 are certain materials prepared by Chrysler Financial Company L.L.C.
that are required to be filed pursuant to the no-action letter dated May 20,
1994 issued by the staff of the Securities and Exchange Commission (the
"Commission") to Kidder, Peabody Acceptance Corporation-1, Kidder, Peabody &
Co. Incorporated and Kidder Structured Asset Corporation and the no-action
letter dated February 15, 1995 issued by the staff of the Commission to the
Public Securities Association.
Item 7. Financial Statements, Pro Forma Financial Information and
---------------------------------------------------------
Exhibits.
--------
Listed below are the financial statements, pro forma financial
information and exhibits, if any, filed as a part of this Report:
(a) Financial statements of businesses acquired;
None
(b) Pro forma financial information:
None
(c) Exhibits:
Exhibit 99
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DAIMLERCHRYSLER WHOLESALE RECEIVABLES L.L.C.
By Chrysler Financial Receivables Corporation,
a member
By: /s/ B.C. Babbish
---------------------------------
B.C. Babbish
Assistant Secretary
CHRYSLER FINANCIAL RECEIVABLES CORPORATION
as successor to U.S. Auto Receivables Company,
the registrant under Registration Statement
No. 333-38873
By: /s/ B.C. Babbish
---------------------------------
B.C. Babbish
Assistant Secretary
CARCO AUTO LOAN MASTER TRUST, By
DaimlerChrysler Wholesale
Receivables LLC, as depositor, on
behalf of the trust, by Chrysler
Financial Receivables Corporation,
a member
By: /s/ B.C. Babbish
---------------------------------
B.C. Babbish
Assistant Secretary
Date: October 17, 2000
EXHIBIT INDEX
Exhibit
No. Description of Exhibit
- ------- ----------------------
99 Material prepared by Chrysler Financial Company L.L.C. in
connection with CARCO Auto Loan Master Trust Floating Rate
Auto Loan Asset Backed Certificates, Series 2000-B pursuant
to the no-action letter dated May 20, 1994 issued by the
staff of the Securities and Exchange Commission (the
"Commission") to Kidder, Peabody Acceptance Corporation-1,
Kidder, Peabody & Co. Incorporated and Kidder Structured
Asset Corporation and the no-action letter dated February
15, 1995 issued by the staff of the Commission to the Public
Securities Association.
EXHIBIT 99
CARCO Auto Loan Master Trust Floating Rate Auto Loan Asset Backed Certificates,
Series 2000-B Structural and Collateral Materials
The information contained in the attached materials is referred to as the
"Information".
The attached Term Sheet has been prepared by Chrysler Financial Company
L.L.C. ("CFC"). Neither Morgan Stanley & Co. Incorporated ("Morgan Stanley")
nor any of its affiliates makes any representation as to the accuracy or
completeness of the Information herein. The Information contained herein is
preliminary and will be superseded by the applicable prospectus supplement and
by any other information subsequently filed with the Securities and Exchange
Commission.
The Information contained herein will be superseded by the description of
the collateral pool contained in the prospectus supplement relating to the
securities.
The Information addresses only certain aspects of the applicable
security's characteristics and thus does not provide a complete assessment. As
such, the Information may not reflect the impact of all structural
characteristics of the security. The assumptions underlying the Information,
including structure and collateral, may be modified from time to time to
reflect changed circumstances.
Although a registration statement (including the prospectus) relating to
the securities discussed in this communication has been filed with the
Securities and Exchange Commission and is effective, the final prospectus
supplement relating to the securities discussed in this communication has not
been filed with the Securities and Exchange Commission. This communication
shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any offer or sale of the securities discussed in this
communication in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such state. Prospective purchasers are referred to the final prospectus
and prospectus supplement relating to the securities discussed in this
communication for definitive Information on any matter discussed in this
communication. Any investment decision should be based only on the data in the
prospectus and the prospectus supplement ("Offering Documents") and the then
current version of the Information. Offering Documents contain data that is
current as of their publication dates and after publication may no longer be
complete or current. A final prospectus and prospectus supplement may be
obtained by contacting the Morgan Stanley Trading Desk at 212-761-2248.
DAIMLERCHRYSLER
CARCO Auto Loan Master Trust
DAIMLERCHRYSLER WHOLESALE RECEIVABLES LLC, Seller
CHRYSLER FINANCIAL COMPANY L.L.C., Servicer
Subject to Revision
Term Sheet dated October 17, 2000.
Issuer............................................... CARCO Auto Loan Master Trust (the "trust").
Seller............................................... DaimlerChrysler Wholesale Receivables LLC ("DCWR" or the
"seller").
Servicer............................................. Chrysler Financial Company L.L.C. ("CFC" or the
"servicer"), a wholly owned subsidiary
of DaimlerChrysler Corporation ("DaimlerChrysler").
Trustee.............................................. The Bank of New York (the "trustee").
Title of Securities.................................. $501,000,000 Floating Rate Auto Loan Asset Backed
Certificates, Series 2000-B (the "Series 2000-B
certificates").
The Series 2000-B Invested
Amount............................................ The total principal amount of the Series 2000-B
certificates invested in receivables on the date they are
issued is expected to be $501,000,000. This invested
amount may increase or decrease depending on principal
collections deposited into or released from the excess
funding account, principal distributed to or accumulated
for Series 2000-B certificateholders and losses on the
receivables and the reimbursement of those losses.
Series Issuance Date................................. October 23, 2000.
Series Cut-Off Date.................................. October 20, 2000.
Interest Payment Dates............................... Interest will be payable on the 15th of each month,
unless the 15th is not a business day, in which case the
payment will be made on the following business day. The
first payment will be on November 15, 2000.
Per Annum Interest Rate.............................. 0.08% above one-month LIBOR or, if lower, the assets
receivables rate, which rate is based primarily on the
interest rates on the receivables. Interest will be
calculated on the basis of the actual number of days in
the applicable interest period divided by 360.
Interest Periods..................................... Each period from and including a distribution date to but
excluding the following distribution date, except that
the first interest period will be 23 days.
Principal Payments................................... We expect to pay the principal of the Series 2000-B
certificates in full on October 15, 2003. However, under
some circumstances we may pay principal earlier or later
or in reduced amounts.
Series 2000-B Termination Date....................... We will be obligated to pay the outstanding principal
amount of the Series 2000-B certificates, to the extent
not previously paid, by October 17, 2005.
Excess Funding Account............................... The excess funded amount is the amount, if any, of the
Series 2000-B certificates not invested in receivables
and, except as described below, will be maintained in an
excess funding account established with the trustee.
Upon the earlier of (a) the commencement of any early
amortization period and (b) the April 2003 distribution
date, some or all of the funds on deposit in the excess
funding account will be distributed to the Series 2000-B
certificateholders or deposited in the principal funding
account.
Revolving Period..................................... During the revolving period, we will not pay principal on
the Series 2000-B certificates or accumulate principal
for that purpose. Instead, we will use the Series 2000-B
share of principal collections to make principal
distributions to other series or pay them to the seller.
The revolving period will begin at the close of business
on the Series Cut-Off Date and end when the accumulation
period begins. The revolving period will also end if an
early amortization period that is not terminated begins.
Series 2000-B Accumulation Period.................... We will accumulate principal for the Series 2000-B
certificates during an accumulation period between one
and five months long unless an early amortization period
that is not terminated begins before the start of the
accumulation period. The latest date on which the
accumulation period will commence is September 1, 2000.
During the accumulation period we will accumulate the
Series 2000-B share of principal collections for payment
on October 15, 2003.
Early Amortization Period............................ If an early amortization event occurs and is not cured,
you will begin to receive payments of principal. We
refer to this period after the occurrence of an early
amortization event as the early amortization period.
Early amortization events are events that might adversely
affect the trust's ability to make payments on the Series
2000-B certificates as originally expected.
Early Amortization Events............................ The early amortization events with respect to the Series
2000-B certificates will include each of the following
events:
1. failure on the part of DCWR, the servicer or CFC,
as applicable,
o to make any payment required by the Pooling and
Servicing Agreement or the Receivables Purchase
Agreement, or
o to deliver a Distribution Date Statement required
by the Pooling and Servicing Agreement, or
o to comply with its covenant not to create any lien
on a receivable or
o to observe or perform in any material respect any
other covenant or agreement set forth in the
Pooling and Servicing Agreement or the Receivables
Purchase Agreement beyond any applicable grace
period;
2. any representation or warranty made by CFC, as seller of
the receivables to DCWR, in the Receivables Purchase
Agreement or by DCWR in the Pooling and Servicing Agreement
or any information required to be given by DCWR to the
trustee to identify the accounts proves to have been
incorrect in any material respect when made and continues
to be incorrect in any material respect for a period of 60
days after written notice and as a result the interests of
the certificateholders are materially and adversely
affected. An early amortization event, however, shall not
be deemed to occur if DCWR has repurchased the related
receivables or all of the receivables, if applicable,
during that period in accordance with the provisions of the
Pooling and Servicing Agreement;
3. the occurrence of events of bankruptcy, insolvency or
receivership relating to CFC, DaimlerChrysler, the trust or
the seller;
4. a failure by DCWR to convey receivables in additional
accounts to the trust when required;
5. on any determination date, the available subordinated
amount for the next distribution date will be reduced to an
amount less than the required subordinated amount on that
determination date after giving effect to the distributions
to be made on the next distribution date;
6. any service default with respect to the Series 2000-B
certificates occurs;
7. on any distribution date, as of the last day of the
preceding collection period, the aggregate amount of
principal receivables relating to used vehicles exceeds 20%
of the pool balance on that last day;
8. on any determination date, the average of the monthly
payment rates for the three preceding collection periods is
less than 20%;
9. any carry-over amount is outstanding on six consecutive
distribution dates;
10. the outstanding principal amount of the Series 2000-B
certificates is not repaid by the Series 2000-B expected
payment date.
Subordination of the Seller's
Interest.......................................... The interest collections, investment proceeds, amounts in
the reserve fund, amounts on deposit in the yield
supplement account and other amounts allocable to the
Series 2000-B certificateholders for any collection
period may not be sufficient to cover the interest
payable with respect to the Series 2000-B certificates on
the next distribution date, plus any overdue interest and
interest thereon, the monthly servicing fee for that
distribution date, any investor default amount for that
distribution date and other amounts. In that case, the
available subordinated amount will be applied to make up
that deficiency.
The available subordinated amount for a determination
date is equal to
(a) the lesser of
(i) the available subordinated amount for the preceding
determination date, minus, with some limitations,
the draw amount for that preceding determination
date, minus funds from the reserve fund applied to
cover any portion of the investor default amount,
plus the excess, if any, of the required
subordinated amount for that determination date
over the required subordinated amount for the
immediately preceding determination date due to an
increase in the subordination factor, plus the
amount of excess servicing available to be paid to
the seller and
(ii) the product of the fractional equivalent of the
subordinated percentage and the invested amount
minus
(b) in the case of clause (a)(i), the incremental
subordinated amount for that preceding determination
date, plus
(c) the incremental subordinated amount for the current
determination date, plus
(d) the subordinated percentage of funds to be withdrawn
from the excess funding account on the succeeding
distribution date and paid to the seller or allocated
to one or more series.
However, (x) from and after the commencement of the Series
2000-B accumulation period until the Series 2000-B
certificates are paid in full and (y) from and after any
early amortization period that is not terminated begins
until the payment in full of the Series 2000-B
certificates, the available subordinated amount shall be
calculated based on the invested amount as of the close of
business on the day preceding that Series 2000-B
accumulation period or early amortization period, as
applicable. The available subordinated amount for the first
determination date is equal to the required subordinated
amount. The required subordinated amount shall mean, as of
any date of determination, the sum of (a) the product of
the initial subordinated percentage, as adjusted from time
to time other than as a result of an increase at the option
of the seller, and the invested amount and (b) the
incremental subordinated amount.
The incremental subordinated amount on any determination
date will equal the result obtained by multiplying
(a) a fraction, the numerator of which is the sum of the
invested amount on the last day of the immediately
preceding collection period and the available
subordinated amount for that determination date,
calculated without adding the incremental subordinated
amount for such determination date as described in
clause (c) above, and the denominator of which is the
pool balance on that last day times
(b) the excess, if any, of (x) the sum of the
overconcentration amount, the installment balance
amount and the aggregate amount of ineligible
receivables on such determination date over (y) the
aggregate amount of ineligible receivables, receivables
in accounts containing dealer overconcentrations and
receivables in installment balances, in each case that
became defaulted receivables during the preceding
collection period and are not subject to reassignment
from the trust, unless insolvency events relating to
the seller or CFC have occurred.
The subordinated percentage will initially equal the
percentage equivalent of a fraction, the numerator of which
is the subordination factor and the denominator of which
will be the excess of 100% over the subordination factor.
The subordination factor will initially be 10%, but will be
subject to increase to 11% in the event that the rating of
CFC's long-term unsecured debt is lowered below BBB- by
Standard & Poor's or withdrawn by Standard & Poor's, unless
the seller receives written confirmation from Standard &
Poor's that the failure to so increase the subordination
factor would not result in that rating agency lowering or
withdrawing its rating of the Series 2000-B certificates.
The seller may, in its sole discretion, increase at any
time the available subordinated amount for so long as the
cumulative amount of those discretionary increases does not
exceed the lesser of (i) $5,566,666.67 or (ii) 1.11% of the
invested amount. The seller is not under any obligation to
increase the available subordinated amount at any time,
except as described in this term sheet. If the available
subordinated amount were reduced to less than the required
subordinated amount, an early amortization event would
occur. The seller could elect to increase the available
subordinated amount at the time that early amortization
event would otherwise occur, thus preventing or delaying
the occurrence of the early amortization event.
Yield Supplement Account............................. On the Series 2000-B issuance date, the seller will
deposit $2,004,000 in the yield supplement account for
the Series 2000-B certificates. The yield supplement
account required amount for any distribution date will
equal 0.40% of the outstanding principal balance of the
Series 2000-B certificates for that distribution date,
after giving effect to any change in the outstanding
principal balance on that distribution date. Amounts on
deposit in the yield supplement account will be available
to pay carry-over amounts. A carry-over amount is the
excess, if any, of interest on the Series 2000-B
certificates at the applicable LIBOR rate over interest
on the Series 2000-B certificates at the assets
receivables rate.
Reserve Fund......................................... On the Series 2000-B issuance date, the Seller will
deposit $1,753,500 into the reserve fund for the Series
2000-B certificates. The reserve fund required amount
for any distribution date will equal 0.35% of the
outstanding principal balance of the Series 2000-B
certificates for that distribution date, after giving
effect to any change in the outstanding principal balance
on that distribution date. Amounts on deposit in the
reserve fund will be available to pay monthly interest,
the monthly servicing fee and investor default amounts
and, on the final payment date, carry-over amounts.
Other Series Issuances............................... As of the date of this term sheet, nine other series
issued by the trust are outstanding.
Allocations.......................................... Interest collections, principal collections and defaulted
receivables allocated to Series 2000-B will be further
allocated between the Series 2000-B certificateholders'
interest and the seller's interest as described below.
Interest collections and defaulted receivables allocated to
Series 2000-B will be allocated at all times to the Series
2000-B certificateholders' interest based on the floating
allocation percentage applicable during the related
collection period. The floating allocation percentage for
any collection period is the percentage obtained by
dividing the invested amount on the last day of the
immediately preceding collection period by the product of
(x) the pool balance on the last day of the immediately
preceding collection period and (y) the series allocation
percentage for that collection period. Principal
collections allocated to Series 2000-B will be allocated to
the Series 2000-B certificateholders' interest based on the
floating allocation percentage during any period (a
"nonprincipal period") that is not the Series 2000-B
accumulation period or an early amortization period and
based on the principal allocation percentage during the
Series 2000-B accumulation period and any early
amortization period. The principal allocation percentage
for any collection period means the percentage equivalent
,which shall never exceed 100%, of a fraction, the
numerator of which is the invested amount as of the last
day of the Series 2000-B revolving period, if that last day
has occurred or, if that last day has not occurred, as of
the last day of the immediately preceding collection period
or, after the Series 2000-B certificates have been paid in
full, zero and the denominator of which is the product of
(x) the pool balance as of that last day and (y) the series
allocation percentage for the collection period in respect
of which the principal allocation percentage is being
calculated.
Excess Principal Collections......................... Principal collections allocable to other series, to the
extent not needed to make payments in respect of the
other series, will be applied to make principal payments
in respect of the Series 2000-B certificates and of other
series of certificates entitled to principal payments.
Registration of Series 2000-B
Certificates .................................... The Series 2000-B certificates will initially be
represented by one or more certificates registered in the
name of Cede & Co., as the nominee of The Depository
Trust Company ("DTC"). No person acquiring an interest in
the Series 2000-B certificates will be entitled to
receive a definitive certificate representing that
person's interest except under some circumstances. Series
2000-B certificateholders may only hold their Series
2000-B certificates through DTC. Series 2000-B
certificates may not be held through Clearstream,
Luxembourg or the Euroclear System.
Servicing Fee Rate .................................. 1/12 of 1.0% per month (on a 30/360 day basis) or, if the
servicer waives the monthly servicing fee, 0.0% for the
distribution date in respect of which the servicer has
waived the monthly servicing fee.
Optional Repurchase ................................. The Series 2000-B certificateholder's interest in the
trust is subject to optional repurchase by the servicer
on any distribution date after the invested amount for
the Series 2000-B certificates is reduced to $50,100,000
or less.
ERISA Considerations ................................ Series 2000-B certificates may be eligible for purchase
by employee benefit plans.
Certificate Ratings ................................. The trust will issue the Series 2000-B certificates only
if they are rated at the time of issuance in the highest
long-term rating category by at least one nationally
recognized rating agency. A security rating is not a
recommendation to buy, sell or hold securities and is
subject to revision or withdrawal in the future by the
assigning rating agency.
- ------------------------------------------------------------------------------
THE DEALER FLOORPLAN FINANCING BUSINESS
- ------------------------------------------------------------------------------
The receivables sold to the trust were or will be selected from
extensions of credit and advances made by DaimlerChrysler and CFC to
approximately 3,190 domestic motor vehicle dealers.
o CFC financed 57.6% of the total number of all DaimlerChrysler
franchised dealers as of September 30, 2000.
o CFC has extended credit lines to 1,173 DaimlerChrysler-franchised
dealers that also operate non-DaimlerChrysler franchises,
representing approximately 43% of the aggregate credit lines of
dealers in the U.S. Wholesale Portfolio as of September 30, 2000,
and 458 non-DaimlerChrysler dealers, representing approximately 19%
of such aggregate credit lines.
o As of September 30, 2000, the balance of principal receivables in
the accounts of the U.S. Wholesale Portfolio was approximately $10.8
billion.
o CFC currently services the U.S. Wholesale Portfolio through its
Southfield Support office and through a network of 25 zone offices
located throughout the United States.
o As of September 30, 2000, the average credit lines per dealer in the
U.S. Wholesale Portfolio for new and used vehicles, which includes
Auction Vehicles, were $3.76 million and $0.49 million,
respectively, and the average balance of principal receivables per
dealer was $3.39 million.
o As of September 30, 2000, the aggregate total receivables balance as
a percentage of the aggregate total credit line was approximately
79.8%.
The following table sets forth the percentages of dealer account balances
by year of credit line origination for the U.S. Wholesale Portfolio.
Portfolio Percentages by Year
of Credit Line Origination
As of September 30, 2000
- ---------------- ------------- -------------- ------------- -------------- ------------- ------------- --------------
2000 1999 1998 1997 1996 1995 1994 Prior to 1994
- ---------------- ------------- -------------- ------------- -------------- ------------- ------------- --------------
6.00% 8.58% 7.05% 6.13% 3.49% 5.61% 3.31% 59.83%
- ---------------- ------------- -------------- ------------- -------------- ------------- ------------- --------------
As of September 30, 2000, the weighted average spread over the prime rate
charged to dealers in the U.S. Wholesale Portfolio was approximately 0.76%.
Used vehicles, which excludes Auction Vehicles, represented approximately
3.08% of the aggregate principal amount of receivables in the U.S. Wholesale
Portfolio as of September 30, 2000. As of September 30, 2000, Used Vehicles
represented approximately 3.18% of the aggregate principal amount of
receivables in the trust, including Excluded Receivables.
The following table provides the percentage of dealers in the U.S.
Wholesale Portfolio that were subject to finance hold.
Finance Hold Experience
As of
September 30, As of December 31,
---------------- ------ ------- ------- ------ ------- ------- ------- ------ -------
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
---------------- ------ ------- ------- ------ ------- ------- ------- ------ -------
Percentage of Dealers 0.4% 0.4% 0.9% 2.1% 1.1% 1.8% 1.6% 3.2% 6.8% 9.4%
--------------------------- ---------------- -- ------ ------- ------- ------ ------- ------- ------- ------ -------
The following table provides the number and percentage of dealers in
Dealer Trouble Status in the U.S. Wholesale Portfolio as of the dates
indicated.
Dealer Trouble Experience
As of
September 30, As of December 31,
--------------- ------- ------- ------ ------- ------- ------- ------ ------- -------
2000 1999 1998 1997 1996 1995 1994 1993 1992 1991
--------------- ------- ------- ------ ------- ------- ------- ------ ------- -------
Number of Dealers 19 27 21 24 20 6 12 21 56 100
- --------------------------- --------------- -- ------- ------- ------ ------- ------- ------- ------ ------- -------
Percentage of Dealers 0.6% 0.9% 0.7% 0.7% 0.6% 0.2% 0.3% 0.6% 1.8% 3.1%
- --------------------------- --------------- -- ------- ------- ------ ------- ------- ------- ------ ------- -------
- ------------------------------------------------------------------------------
THE ACCOUNTS
- ------------------------------------------------------------------------------
As of September 30, 2000, with respect to the Accounts in the trust:
o there were approximately 2,960 Accounts and the principal receivables
balance was approximately $10.0 billion;
o the average credit lines per dealer for new and used vehicles, which
include Auction Vehicles, were approximately $3.73 million and $0.51 million,
respectively, and the average balance of principal receivables per dealer was
approximately $3.39 million; and
o the aggregate total receivables balance as a percentage of the
aggregate total credit line was approximately 79.9%.
Unless otherwise indicated, the statistics included in this paragraph, in the
table below and under " - Geographic Distribution" with respect to the
Accounts and the receivables in the trust give effect to approximately $8.6
million of principal receivables balances with respect to certain dealers (the
"Excluded Receivables" and the "Excluded Dealers", respectively) that are in
voluntary or involuntary bankruptcy proceedings or voluntary or involuntary
liquidation or that, subject to limitations, are being voluntarily removed by
the seller from the trust. A portion of those principal receivables was
created after those dealers entered into that status or were designated by the
seller, or the servicer on its behalf, for removal from the trust and, as a
result, are owned by CFC. Principal receivables balances created prior to
those dealers entering into that status or being designated for removal from
the trust are included in the principal receivables balance.
The following table sets forth the percentages of dealer account
balances by year of credit line origination for the accounts in the trust.
Portfolio Percentages by Year
of Credit Line Origination
As of September 30,
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
Prior to
2000 1999 1998 1997 1996 1995 1994 1994
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
2.66% 9.04% 7.04% 6.04% 3.62% 4.55% 3.51% 63.54%
--------------- ------------ ------------ ------------ ------------ ------------ ------------ ------------
As of September 30, 2000, the weighted average spread over the prime rate
charged to dealers was approximately 0.76%.
Loss Experience
The following tables set forth the average principal receivables balance
and loss experience for each of the periods shown on the U.S. Wholesale
Portfolio. Because the eligible Accounts in the trust (the "Eligible
Accounts") will be only a portion of the entire U.S. Wholesale Portfolio,
actual loss experience with respect to the Eligible Accounts may be different.
We cannot assure you that the loss experience for the receivables in the
future will be similar to the historical experience set forth below with
respect to the U.S. Wholesale Portfolio. Also, the historical experience set
forth below reflects financial assistance provided by DaimlerChrysler or
Chrysler to DaimlerChrysler-franchised dealers. If DaimlerChrysler is not able
to or elects not to provide that assistance, the loss experience in respect of
the U.S. Wholesale Portfolio may be adversely affected.
Loss Experience for the U.S. Wholesale Portfolio
Nine Months Ended
September 30, As of Year Ended December 31,
--------------------- ------------------------------------------------------------------------
2000 1999 1999 1998 1997 1996 1995 1994 1993
--------------------- ------------------------------------------------------------------------
(Dollars in millions)
Average Principal
Receivables
Balance(l) $ 11,552 $ 10,417 $ 10,430 $ 9,236 $ 8,877 $ 8,825 $ 8,256 $ 6,754 $ 6,271
- --------------------------------------------------------------------------------------------------------------------------
Net Losses/(Net
Recoveries)(2) $ 0 $ (0) $ (0) $ 11 $ 4 $ (0) $ (1) $ (1) $ 12
- --------------------------------------------------------------------------------------------------------------------------
Net Losses/(Net
Recoveries) as a
Percent of
Liquidations(3) 0.001% 0.000% (0.001)% 0.020% 0.007% (0.000)% (0.002)% (0.003)% 0.035%
- --------------------------------------------------------------------------------------------------------------------------
Net Losses/(Net
Recoveries) as a
Percent of Average
Principal Receivables
Balance(3) 0.00% (0.00)% (0.00)% 0.12% 0.04% (0.00)% (0.01)% (0.01)% 0.19%
- --------------------------------------------------------------------------------------------------------------------------
Loss Experience for the U.S. Wholesale Portfolio (Continued)
Year Ended December 31,
------------ ----------- ------------ ----------- ------------ -----------
1992 1991 1990 1989 1988 1987
------------ ----------- ------------ ----------- ------------ -----------
(Dollars in millions)
Average Principal Receivables
Balance(l) $ 5,344 $ 4,826 $ 4,726 $ 4,933 $ 4,129 $ 3,787
- ------------------------------ ------------ ----------- ------------ ----------- ------------ -----------
Net Losses/(Net
Recoveries)(2) $ 26 $ 36 $ 23 $ 13 $ 3 $ 2
- ------------------------------ ------------ ----------- ------------ ----------- ------------ -----------
Net Losses/(Net
Recoveries) as a Percent
of Liquidations(3) 0.098% 0.163% 0.117% 0.060% 0.015% 0.015%
- ------------------------------ ------------ ----------- ------------ ----------- ------------ -----------
Net Losses/(Net Recoveries)
as a Percent of Average
Principal Receivables
Balance(3) 0.49% 0.75% 0.49% 0.26% 0.07% 0.06%
- ------------------------------ ------------ ----------- ------------ ----------- ------------ -----------
(1) Average Principal Receivables Balance is the average of the month-end
principal balances for the thirteen months ending on the last day of the
period, except for the nine months ended September 30, 2000 and 1999
which are based on a ten-month average.
(2) Net losses in any period are gross losses less recoveries for such
period.
(3) Percentages for the nine months ended September 30, 2000 and 1999 are
expressed on an annualized basis and are not necessarily indicative for
the entire year.
Aging Experience
The following table provides the age distribution of vehicle
inventory for all dealers in the U.S. Wholesale Portfolio, as a percentage of
total principal outstanding at the date indicated. Because the Eligible
Accounts will only be a portion of the entire U.S. Wholesale Portfolio, actual
age distribution with respect to the Eligible Accounts may be different.
Age Distribution for the U.S. Wholesale Portfolio
As of
September 30, As of December 31,
---------------- --------------------------------------------------------------------------------
Days 2000 1999 1998 1997 1996 1995 1994 1993 1992
---------------- --------------------------------------------------------------------------------
1-120 76.9% 81.7% 81.7% 80.1% 80.4% 82.2% 82.5% 82.4% 77.2%
- ---------------------------------------------------------------------------------------------------------------------
121-180 10.6 12.1 11.0 10.8 10.0 9.3 10.1 9.6 13.8
- ---------------------------------------------------------------------------------------------------------------------
181-270 8.3 3.6 4.1 4.2 5.0 3.8 4.0 4.6 4.8
- ---------------------------------------------------------------------------------------------------------------------
over 270 4.2 2.6 3.2 4.9 4.6 4.7 3.4 3.4 4.2
- ---------------------------------------------------------------------------------------------------------------------
Geographic Distribution
The following table provides the geographic distribution of the
vehicle inventory for all dealers in the trust on the basis of receivables
outstanding and the number of dealers generating the portfolio. The
percentages may not add to 100.00% because of rounding.
Geographic Distribution of Accounts in the Trust
As of September 30, 2000
------------------------- --------------------- ---------------------- ---------------------
Receivables Percentage of Total Number of Percentage of
Receivables Number of
Outstanding (2) Outstanding (2) Dealers (3) Dealers (3)
------------------------- --------------------- ---------------------- ---------------------
Texas $ 915,338,120.68 9.12% 185 6.25%
- ------------------------ ------------------------- --------------------- ---------------------- ---------------------
California 851,285,039.95 8.48 190 6.42
- ------------------------ ------------------------- --------------------- ---------------------- ---------------------
New York 631,670,381.29 6.29 181 6.11
- ------------------------ ------------------------- --------------------- ---------------------- ---------------------
Florida 544,302,535.44 5.42 120 4.05
- ------------------------ ------------------------- --------------------- ---------------------- ---------------------
New Jersey 534,949,765.43 5.33 134 4.53
- ------------------------ ------------------------- --------------------- ---------------------- ---------------------
Illinois 529,777,942.65 5.28 156 5.27
- ------------------------ ------------------------- --------------------- ---------------------- ---------------------
Other (l) 6,030,139,490.89 60.08 1,995 67.38
- ------------------------ ------------------------- --------------------- ---------------------- ---------------------
Total $10,037,463,276.33 100.00% 2,961 100.00%
- ------------------------ ------------------------- --------------------- ---------------------- ---------------------
(1) No other state includes more than 5% of the outstanding receivables.
(2) Includes Excluded Receivables.
(3) Includes Excluded Dealers.
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MATURITY AND PRINCIPAL PAYMENT CONSIDERATIONS
- ------------------------------------------------------------------------------
You will begin receiving principal on your certificates if an Early
Amortization Period that is not terminated has commenced. Full amortization of
the Series 2000-B certificates by the October 2003 Distribution Date (the
"Series 2000-B Expected Payment Date") depends on, among other things,
repayment by dealers of the receivables and may not occur if dealer payments
are insufficient. Because the receivables are paid upon retail sale of the
underlying vehicle, the timing of the payments is uncertain. Also, there is no
assurance that CFC will generate additional receivables under the Accounts or
that any particular pattern of dealer payments will occur. Also, the shorter
the Series 2000-B Accumulation Period Length the greater the likelihood that
payment of the Series 2000-B certificates in full by the Series 2000-A
Expected Payment Date will be dependent on the reallocation of principal
collections which are initially allocated to other outstanding series. If one
or more other series from which principal collections are expected to be
available to be reallocated to the payment of the Series 2000-B certificates
enters into an early amortization period or reinvestment period after the
April 2003 Distribution Date, principal collections allocated to that series
will not be available to be reallocated to make payments of principal of the
Series 2000-B certificates and the final payment of principal of the Series
2000-B certificates may be later than the Series 2000-B Expected Payment Date.
Because an Early Amortization Event with respect to the Series 2000-B
certificates may occur and would initiate an Early Amortization Period, you
may receive the final distribution of principal on your Series 2000-B
certificates prior to the scheduled termination of the Series 2000-B Revolving
Period or prior to the Series 2000-A Expected Payment Date.
The amount of new receivables generated in any month and monthly payment
rates on the receivables may vary because of seasonal variations in vehicle
sales and inventory levels, retail incentive programs provided by vehicle
manufacturers and various economic factors affecting vehicle sales generally.
The following table sets forth the highest and lowest monthly payment rates
for the U.S. Wholesale Portfolio during any month in the periods shown and the
average of the monthly payment rates for all months during the periods shown.
The monthly payment rate is the percentage equivalent of a fraction, the
numerator of which is the aggregate of all collections of principal during the
period and the denominator of which is the average aggregate principal balance
for the period. Monthly payment rates reflected in the table include principal
credit adjustments. We cannot assure you that the rate of principal
collections will be similar to the historical experience set forth below.
Because the Eligible Accounts will be only a portion of the entire U.S.
Wholesale Portfolio, historical monthly payment rates with respect to the
Eligible Accounts may be different than those shown below.
Monthly Payment Rates for the U.S. Wholesale Portfolio
Nine months
ended
September 30, Year Ended December 31,
- ------------------------------------ -----------------------------------------------------------------------------------------
2000 1999 1999 1998 1997 1996 1995 1994 1993 1992 1991
-------------------- -----------------------------------------------------------------------------------------
Highest Month 52.8% 60.5% 60.5% 60.8% 57.7% 58.3% 59.1% 59.7% 54.7% 50.6% 49.0%
- --------------------------------------------------------------------------------------------------------------------------------
Lowest Month 39.0 45.4 44.7 42.5 41.1 43.2 36.5 34.2 35.9 34.4 30.2
- --------------------------------------------------------------------------------------------------------------------------------
Average of the
Months
in the
Period 46.2 53.6 52.0 50.0 48.2 49.0 45.6 50.3 46.6 41.3 38.2
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