JPMorgan's Non-TALF $1 Billion Deal Sold -Source

JPMorgan Chase & Co.'s (JPM) $1 billion credit card loan-backed deal sold Friday, according to a person familiar with the matter.

The self-led deal, which was increased in size to $1 billion from $700 million amid strong demand, was not eligible for funding under the Federal Reserve's Term Asset-Backed Securities Loan Facility, or TALF.

The single tranche, triple-A rated deal, dubbed CHAIT 09-A3, sold at 115 basis points over a benchmark rate, in line with guidance.

The bond's maturity is 2.067 years.

May 4, JPMorgan sold a $5 billion TALF-eligible credit-card loan-backed deal at 155 basis points over the one-month London interbank offered rate, or Libor. This was the largest TALF-eligible bond sold since the Fed launched the program in March.

"Chase is the gold standard in credit cards," said Dan Nigro, an asset-backed securities portfolio manager at Dynamic Credit Partners. They are doing non-TALF deals "because they can."

Investors who have not filled out TALF documents but need bonds and "relatively bullet-proof credit" will be the likely buyers, Nigro said.

The central bank provides nonrecourse loans to investors to buy mostly consumer-loan backed bonds through TALF.

Since March, TALF-eligible bonds worth more than $25 billion have sold. Non-TALF issuance stands at more than $10 billion.

JPMorgan did not immediately return calls for comment.

-By Anusha Shrivastava, Dow Jones Newswires; 201-938-2371; [e-mail]