Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - WFN CREDIT CO LLC | exhibit_99-1.htm |
| 8-K - FORM 8-K - WFN CREDIT CO LLC | form_8k.htm |
Exhibit 99.2
PRO FORMA COMPOSITION OF THE TRUST PORTFOLIO
The tables below reflect certain information regarding the composition of the credit card receivables held by World Financial Network Credit Card Master Trust (the "Trust Portfolio") on a pro forma basis as if the Proposed Account Removal and the Account Addition (each as defined in the accompanying Form 8-K) had occurred at the close of business on June 30, 2018 (the "Pro Forma Date"). Because the future composition of the Trust Portfolio will change over time, these tables are not indicative of the composition of the Trust Portfolio at any subsequent time after the Pro Forma Date.
For purposes of the tables below, "Number of Accounts" refers to all trust accounts, including any accounts that are inactive accounts and zero-balance accounts, which in some cases may be closed accounts that have not yet been removed from the Bank's computer system and from the Trust Portfolio.
The table immediately below sets forth the number of fixed and floating rate credit cards and the associated principal amounts contained in the Trust Portfolio as of June 30, 2018.
Distribution of Trust Portfolio
by Fixed/Floating APR
(Dollars in Thousands; Accounts in Thousands)
by Fixed/Floating APR
(Dollars in Thousands; Accounts in Thousands)
|
Number of
Accounts
|
Percentage of Number of Accounts |
Principal
Receivables |
Percentage of
Total Principal
Receivables
|
|||||||||||||
|
Total Fixed
|
3,265
|
4.04
|
%
|
$
|
221,368
|
2.98
|
%
|
|||||||||
|
Total Variable (1)
|
77,582
|
95.96
|
%
|
$
|
7,201,944
|
97.02
|
%
|
|||||||||
|
Total (2)
|
80,847
|
100.00
|
%
|
$
|
7,423,312
|
100.00
|
%
|
|||||||||
________________________________
|
(1)
|
In the majority of instances, the annual variable rate is currently either prime plus 21.74% or prime plus 23.74%.
|
|
(2)
|
Amounts and percentages may not add up to the total due to rounding.
|
Our variable rate credit cards represent APRs indexed to a benchmark rate plus various spread levels. Variable rate credit cards are not subject to a maximum rate.
Composition by Retailer Type
Trust Portfolio
Trust Portfolio
|
Retailer Type
|
Percentage of Total
Principal Receivables
|
|
Soft goods
|
58.88%
|
|
Department Store
|
8.14%
|
|
Furniture
|
19.00%
|
|
Jewelry
|
13.42%
|
|
Other
|
0.56%
|
|
Total (1)
|
100.00%
|
________________________________
|
(1)
|
Amounts and percentages may not add up to the total due to rounding.
|
The table immediately below sets forth the companies, including each of their respective affiliates, that have credit card programs, or groups of credit card programs, that account for more than 7.5% of principal receivables balances in the Trust Portfolio as of June 30, 2018. Except for the three companies listed below, no other credit card program, or group of credit card programs, accounts for more than 7.5% of the principal receivables in the Trust Portfolio as of June 30, 2018.
Composition by Retailer Group of
Trust Portfolio
Trust Portfolio
(Dollars in Thousands; Accounts in Thousands)
|
Retailer Group (1)
|
Number of
Accounts
|
Percentage
of Total Number of Accounts
|
Principal
Receivables
|
Percentage of
Total Principal
Receivables
|
||||||||||||
|
L Brands, Inc. Retail Group
|
14,174
|
17.53
|
%
|
$
|
1,647,844
|
22.20
|
%
|
|||||||||
|
Signet Inc. Retailer Group
|
2,291
|
2.83
|
%
|
$
|
872,699
|
11.76
|
%
|
|||||||||
|
Ascena Retail Group, Inc.
|
10,702
|
13.24
|
%
|
$
|
770,018
|
10.37
|
%
|
|||||||||
|
Retailer Groups less than 7.5%
|
53,680
|
66.40
|
%
|
$
|
4,132,751
|
55.67
|
%
|
|||||||||
|
Total (2)
|
80,847
|
100.00
|
%
|
$
|
7,423,312
|
100.00
|
%
|
|||||||||
________________________________
|
(1)
|
Includes each individual retailer in the trust commonly owned by the retailer group.
|
|
(2)
|
Amounts and percentages may not add up to the total due to rounding.
|
Composition by Individual Retailer of
Trust Portfolio
(Dollars in Thousands; Accounts in Thousands)
|
Retailer
|
Number of
Accounts
|
Percentage
of Total Number of Accounts
|
Principal
Receivables
|
Percentage of
Total Principal
Receivables
|
||||||||||||
|
Victoria's Secret PL
|
14,133
|
17.48
|
%
|
$
|
1,642,262
|
22.12
|
%
|
|||||||||
|
Kay Jewelers PLCC
|
1,664
|
2.06
|
%
|
$
|
591,084
|
7.96
|
%
|
|||||||||
|
Lane Bryant PL
|
3,722
|
4.60
|
%
|
$
|
406,483
|
5.48
|
%
|
|||||||||
|
Wayfair PL
|
995
|
1.23
|
%
|
$
|
362,386
|
4.88
|
%
|
|||||||||
|
Express PL
|
3,765
|
4.66
|
%
|
$
|
319,926
|
4.31
|
%
|
|||||||||
|
New York & Company PL
|
4,785
|
5.92
|
%
|
$
|
295,664
|
3.98
|
%
|
|||||||||
|
Pottery Barn PL
|
1,298
|
1.61
|
%
|
$
|
279,056
|
3.76
|
%
|
|||||||||
|
Jared PLCC
|
525
|
0.65
|
%
|
$
|
255,955
|
3.45
|
%
|
|||||||||
|
Ann Taylor PL
|
5,730
|
7.09
|
%
|
$
|
252,446
|
3.40
|
%
|
|||||||||
|
Pier 1 Imports PL
|
4,447
|
5.50
|
%
|
$
|
218,258
|
2.94
|
%
|
|||||||||
|
All Other Retailers(1)
|
39,784
|
49.21
|
%
|
$
|
2,799,792
|
37.72
|
%
|
|||||||||
|
Total (2)
|
80,847
|
100.00
|
%
|
$
|
7,423,312
|
100.00
|
%
|
|||||||||
________________________________
|
(1)
|
Retailers individually representing a lesser percentage of principal receivables balances in the Trust Portfolio as of June 30, 2018.
|
|
(2)
|
Percentages may not add up to the total due to rounding.
|
Composition by Account Balance
Trust Portfolio
(Dollars in Thousands; Accounts in Thousands)
|
Account Balance Range
|
Number of
Accounts
|
Percentage
of Total Number of Accounts
|
Principal
Receivables
|
Percent of
Total Principal Receivables
|
||||||||||||
|
Credit Balance
|
328
|
0.41
|
%
|
$
|
(14,410
|
)
|
-0.19
|
%
|
||||||||
|
No Balance
|
66,619
|
82.40
|
%
|
$
|
-
|
0.00
|
%
|
|||||||||
|
$0.01 - $50.00
|
1,687
|
2.09
|
%
|
$
|
48,342
|
0.65
|
%
|
|||||||||
|
$50.01 - $100.00
|
1,843
|
2.28
|
%
|
$
|
137,261
|
1.85
|
%
|
|||||||||
|
$100.01 - $150.00
|
1,391
|
1.72
|
%
|
$
|
172,529
|
2.32
|
%
|
|||||||||
|
$150.01 - $250.00
|
2,060
|
2.55
|
%
|
$
|
407,253
|
5.49
|
%
|
|||||||||
|
$250.01 - $350.00
|
1,193
|
1.48
|
%
|
$
|
353,759
|
4.77
|
%
|
|||||||||
|
$350.01 - $500.00
|
1,275
|
1.58
|
%
|
$
|
538,849
|
7.26
|
%
|
|||||||||
|
$500.01 - $1,000.00
|
2,388
|
2.95
|
%
|
$
|
1,716,732
|
23.13
|
%
|
|||||||||
|
$1,000.01 - $1,500.00
|
1,000
|
1.24
|
%
|
$
|
1,216,029
|
16.38
|
%
|
|||||||||
|
$1,500.01 or more
|
1,064
|
1.32
|
%
|
$
|
2,846,968
|
38.35
|
%
|
|||||||||
|
Total (1)
|
80,847
|
100.00
|
%
|
$
|
7,423,312
|
100.00
|
%
|
|||||||||
________________________________
|
(1)
|
Amounts and percentages may not add up to the total due to rounding.
|
Composition by Credit Limit
Trust Portfolio
(Dollars in Thousands; Accounts in Thousands)
|
Credit Limit Range
|
Number of
Accounts
|
Percentage
of Total Number of Accounts
|
Principal
Receivables
|
Percent of
Total Principal Receivables
|
||||||||||||
|
No Credit Limit
|
3,315
|
4.10
|
%
|
$
|
29,751
|
0.40
|
%
|
|||||||||
|
$0.01 - $100.00
|
627
|
0.78
|
%
|
$
|
6,714
|
0.09
|
%
|
|||||||||
|
$100.01 - $250.00
|
6,398
|
7.91
|
%
|
$
|
186,805
|
2.52
|
%
|
|||||||||
|
$250.01 - $350.00
|
2,669
|
3.30
|
%
|
$
|
104,744
|
1.41
|
%
|
|||||||||
|
$350.01 - $500.00
|
6,310
|
7.80
|
%
|
$
|
253,560
|
3.42
|
%
|
|||||||||
|
$500.01 - $750.00
|
10,863
|
13.44
|
%
|
$
|
448,158
|
6.04
|
%
|
|||||||||
|
$750.01 - $1,000.00
|
17,263
|
21.35
|
%
|
$
|
606,912
|
8.18
|
%
|
|||||||||
|
$1,000.01 - $1,250.00
|
4,481
|
5.54
|
%
|
$
|
543,741
|
7.32
|
%
|
|||||||||
|
$1,250.01 - $1,500.00
|
6,731
|
8.33
|
%
|
$
|
610,409
|
8.22
|
%
|
|||||||||
|
$1,500.01 - $2,000.00
|
6,879
|
8.51
|
%
|
$
|
999,649
|
13.47
|
%
|
|||||||||
|
$2,000.01 - $2,500.00
|
2,124
|
2.63
|
%
|
$
|
628,033
|
8.46
|
%
|
|||||||||
|
$2,500.01 or more
|
13,186
|
16.31
|
%
|
$
|
3,004,836
|
40.48
|
%
|
|||||||||
|
Total (1)
|
80,847
|
100.00
|
%
|
$
|
7,423,312
|
100.00
|
%
|
|||||||||
________________________________
| (1) |
Amounts and percentages may not add up to the total due to rounding.
|
Composition by Account Age
Trust Portfolio
(Dollars in Thousands; Accounts in Thousands)
|
Account Age Range
|
Number of
Accounts
|
Percentage
of Total Number of Accounts
|
Principal
Receivables
|
Percent of
Total Principal Receivables
|
||||||||||||
|
Not More than 12 Months
|
7,536
|
9.32
|
%
|
$
|
1,467,872
|
19.77
|
%
|
|||||||||
|
Over 12 Months to 24 Months
|
6,779
|
8.39
|
%
|
$
|
1,036,514
|
13.96
|
%
|
|||||||||
|
Over 24 Months to 36 Months
|
7,404
|
9.16
|
%
|
$
|
958,813
|
12.92
|
%
|
|||||||||
|
Over 36 Months to 48 Months
|
7,178
|
8.88
|
%
|
$
|
813,702
|
10.96
|
%
|
|||||||||
|
Over 48 Months to 60 Months
|
6,955
|
8.60
|
%
|
$
|
634,843
|
8.55
|
%
|
|||||||||
|
Over 60 Months
|
44,996
|
55.66
|
%
|
$
|
2,511,568
|
33.83
|
%
|
|||||||||
|
Total (1)
|
80,847
|
100.00
|
%
|
$
|
7,423,312
|
100.00
|
%
|
|||||||||
________________________________
| (1) |
Amounts and percentages may not add up to the total due to rounding.
|
Cardholders whose accounts are designated for the Trust Portfolio had billing addresses in all 50 states, the District of Columbia and other U.S. territories, except for approximately 0.27% of the principal receivables balance for the trust for which cardholders had billing addresses located outside of the United States, the District of Columbia or other U.S. territories. Except for the six states listed below, no state accounted for more than 5% of the number of accounts or 5% of the total principal receivables balances as of June 30, 2018.
Composition by Billing Address
Trust Portfolio
|
State
|
Percentage of
Number of Accounts
|
Percentage of
Total Principal Receivables |
|
Texas
|
8.06%
|
11.21%
|
|
California
|
8.62%
|
10.50%
|
|
Illinois
|
4.76%
|
5.34%
|
|
New York
|
7.77%
|
7.07%
|
|
Florida
|
7.30%
|
7.54%
|
|
Pennsylvania
|
4.80%
|
4.07%
|
The Bank uses credit bureau scoring and a proprietary scoring model developed for the Bank as tools in the underwriting process and for making credit decisions. The Bank uses credit bureau scoring and a proprietary scoring model also for purposes of monitoring obligor credit quality. The Bank's proprietary scoring model is based on historical data and requires the Bank to make various assumptions about future performance. As a result, the Bank's proprietary model is not intended, and should not be relied upon, to forecast actual future performance.
Information regarding customer performance is factored into these proprietary scoring models to determine the probability of an account becoming 91 or more days past due or becoming charged off at any time within the next 12 months. Obligor credit quality is monitored at least monthly during the life of an account. The information in the table below is based on the most recent information available for each account in the Trust Portfolio. Because the future composition of the Trust Portfolio will change over time, obligor credit quality as shown in the table below is not indicative of obligor credit quality for the Trust Portfolio at any subsequent time. In addition, the Bank's assessment of obligor credit quality may change over time depending on the conduct of the cardholder and changes in the proprietary scoring models used by the Bank.
Composition by Obligor Credit Quality
Trust Portfolio
(Dollars in Thousands)
|
Probability of an Account Becoming 91 or More
Days Past Due or Becoming Charged-off (within the next 12 months) |
Principal
Receivables |
Percentage of Total
Principal
Receivables |
|||||||
|
No Score
|
$
|
65,096
|
0.88
|
%
|
|||||
|
27.1% and higher
|
$
|
671,419
|
9.04
|
%
|
|||||
| 17.1% – 27.0% |
$
|
413,448
|
5.57
|
%
|
|||||
| 12.6% – 17.0% |
$
|
605,231
|
8.15
|
%
|
|||||
| 3.7% – 12.5% |
$
|
3,187,680
|
42.94
|
%
|
|||||
| 1.9 – 3.6% |
|
$
|
1,220,517
|
16.44
|
%
|
||||
|
Lower than 1.9%
|
$
|
1,259,921
|
16.97
|
%
|
|||||
|
Total (1)
|
$
|
7,423,312
|
100.00
|
%
|
|||||
________________________________
|
(1)
|
Amounts and percentages may not add up to the total due to rounding.
|