SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended: Commission file number:
August 1, 1998 33-88098
NEIMAN MARCUS FUNDING CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 04-2354838
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
NEIMAN MARCUS FUNDING CORPORATION
1201 Elm Street
Dallas, Texas 75201
(214) 761-2300
(Address of principal executive offices, including Zip Code
and Telephone Number, including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
NONE
Securities registered pursuant to Section 12(g) of the Act:
Neiman Marcus Group Credit Card Master Trust
7.60% Class A Asset Backed Certificates, Series 1995-1
7.75% Class B Asset Backed Certificates, Series 1995-1
Indicate by check mark whether the Registrant has (1) filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No ___
State the aggregate market value of the voting stock held by non-affiliates of
the Registrant: NONE - all of the voting stock of the Registrant is held by
The Neiman Marcus Group, Inc., and there is no public market for such stock.
2
PART I
Item 1: Business
The Neiman Marcus Group Credit Card Master Trust (the "Trust") was
formed pursuant to the Pooling and Servicing Agreement dated as of
March 1, 1995 (the "Pooling and Servicing Agreement") among The
Neiman Marcus Group, Inc. ("NMG") as Servicer, its wholly owned
subsidiary, Neiman Marcus Funding Corporation ("NMFC") as Seller,
and The Chase Manhattan Bank, N.A., as Trustee (the "Trustee").
On March 15, 1995, the Trust issued $225,000,000 aggregate
principle amount of Class A 7.60% Asset Backed Certificates,
Series 1995-1 (the "Class A Certificates"); $21,000,000 aggregate
principal amount of Class B 7.75% Asset Backed Certificates,
Series 1995-1 (the "Class B Certificates"); and $54,000,000
aggregate principal amount of Class C Asset Backed Certificates,
Series 1995-1 (the "Class C Certificates"), pursuant to the
Pooling and Servicing Agreement. The property of the Trust
includes a pool of receivables arising under consumer revolving
credit accounts originated by NMG. The receivables were sold by
NMG to NMFC pursuant to a Receivables Purchase Agreement dated as
of March 1, 1995 between NMG and NMFC, and the receivables were
sold by NMFC to the Trust pursuant to the Pooling and Servicing
Agreement. The only business of NMFC is to perform its
obligations as Seller in connection with the issuance by the Trust
of the Class A, Class B and Class C Certificates pursuant to the
Receivables Purchase Agreement, the Pooling and Servicing
Agreement, and the Series 1995-1 Supplement to the Pooling and
Servicing Agreement.
Item 2. Properties
See item 1 for a description of the property of the Trust.
Item 3. Legal Proceedings
None
Item 4. Submission of Matters to a Vote of Security Holders
None.
3
PART II
Item 5. Market For Registrant's Common Equity and Related Stockholder
Matters
The Class A and Class B Certificates are held and delivered in
book entry form through the facilities of The Depository Trust
Company ("DTC"), a "clearing agency" registered pursuant to the
provisions of Section 17A of the Securities Exchange Act of 1934
as amended. The Certificates representing investors' interests in
the Trust are registered in the name of Cede & Co., the nominee of
DTC.
To the best knowledge of the Registrant, there is no established
public trading market for the Certificates.
The Class C Certificate is held by NMFC, and all of the common
stock of NMFC is owned by NMG. There is no public market for the
common stock of NMFC.
Item 6. Selected Financial Data
Not Applicable.
Item 7. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Not Applicable.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
Not Applicable.
Item 8. Financial Statements and Supplementary Data
Not Applicable.
Item 9. Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure
None.
Item 10. Directors and Executive Officers of the Registrant
Not Applicable.
Item 11. Executive Compensation
Not Applicable.
4
PART III
Item 12. Security Ownership of Certain Beneficial Owners and Management
(a) The Class A Certificates and the Class B Certificate, which
represent investors' interests in the Trust, are registered in the
name of Cede & Co., the nominee of the Depository Trust Company
("DTC"), and an investor holding an interest in the Trust is not
entitled to receive a Certificate representing such interest
except in certain limited circumstances. Accordingly, Cede & Co.
is the sole holder of record of the Class A and Class B
Certificates; which it held on behalf of brokers, dealers, banks
and other direct participants in the DTC system at August 1, 1998.
Such direct participants may hold Certificates for their own
accounts or for the accounts of their customers. At October 27,
1998, the following direct DTC participants held positions in
Certificates representing interests in the Trust equal to or
exceeding 5% of the total principal amount of the Certificates of
each Class outstanding on that date:
Title of Aggregate Amount Percentage
Class Name of Certificates Held of Ownership
- ----- ---- -------------------- ------------
Series 1995-1
Class A Bankers Trust Company $62,000,000 27.6%
Chase Manhattan Bank $47,335,000 21.0%
Bank of New York $38,375,000 17.1%
State Street Bank-Custodian $35,285,000 15.7%
Citibank $14,180,000 6.3%
Class B Chase Manhattan Bank $21,000,000 100%
The address of each of the above participants is:
c/o The Depository Trust Company
7 Hanover Square
New York, NY 10004
5
NMFC, as of October 27, 1998, owned 100% of the Class C Certificate,
which represented beneficial ownership of a residual interest in the assets of
the Trust as provided in the Pooling and Servicing Agreement.
The Neiman Marcus Group, Inc. is the owner of 100% of the issued and
outstanding common stock of the Registrant, which is not traded in any market.
Item 13. Certain Relationships and Related Transactions
None.
PART IV
Item 14. Exhibits, Financial Statement Schedules, and Reports on Form 8-K
(a) The following Exhibits are filed as part of this Report:
20.1 1998 Annual Servicer's Certificate
99.1 Annual Servicing Report of Independent Public Accounts
pursuant to Section 3.06 of the Pooling and Servicing
Agreement
(b) Reports on Form 8-K
Current Reports on Form 8-K are filed on or before the
Distribution Date each month (on, or the first business day
after, the 15th of each month). The reports include as an
Exhibit the Monthly Servicer's Certificate. Current Reports
on Form 8-K were filed with the Securities and Exchange
Commission on: August 11, 1997, September 12, 1997, October
10, 1997, November 10, 1997, December 11, 1997, January 12,
1998, February 11, 1998, March 10, 1998, April 10, 1998, May
12, 1998, June 10, 1998 and July 13, 1998.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
NEIMAN MARCUS FUNDING CORPORATION
By: /s/Paul F. Gibbons
Paul F. Gibbons
Vice President and Treasurer
Date: October 30, 1998
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EXHIBIT INDEX
Sequentially
Exhibit Number Description Numbered Page
20.1 Annual Servicer's Certificate
99.1 Annual Servicing Report of
Independent Public Accountants
pursuant to Section 3.06 of the
Pooling and Servicing Agreement
8