August 17, 2009 (FinancialWire) — Alliance Data Systems Corp. (NYSE: ADS) said that its World Financial Network Credit Card Master Note Trust has issued $950 million of fixed-rate term asset-backed securities. The securities consist of three series of notes with an average life of just under three years.

Around $750 million are eligible collateral under the U.S. government’s TALF program and carry a weighted average fixed rate just under four percent, according to Alliance.

The remaining roughly $200 million of investment grade securities have been and will continue to be retained by the company and financed through FDIC-insured CDs, which is consistent with the company’s strategy on recent offerings.

This offering, combined with a previous issuance of $709 million reported in April, brings the company’s total issuance this year of term fixed-rate asset-backed securities to $1.7 billion.

The $950 million of asset-backed securities were issued as part of a securitization program for Alliance Data’s private label credit card banking subsidiary, World Financial Network National Bank.

company CEO Ed Heffernan said, “Continuing to secure long-term fixed-rate sources of funding is one of our critical objectives. Accessing the term markets frees-up additional excess liquidity from our other sources of funding such as CDs and bank conduits.”

He added that the move supports the company’s plan of augmenting its private label business by taking advantage of “the current favorable funding environment for acquiring high-quality credit card portfolios to supplement our organic growth.”

Along with another $1.2 billion in term fixed-rate bonds still outstanding, the company’s private label portfolio now has two-thirds of its funding through asset-backed securities with fixed-rate, multi-year terms.

Dallas-based Alliance Data provides loyalty and marketing solutions. Alliance is the parent company of Epsilon, a provider of multi-channel technologies and marketing services, and LoyaltyOne, which owns and operates the Air MIles reward program.

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