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Nissan Motor plans to offer $1.5 bln car loan ABS

NEW YORK, June 17 (Reuters) - Nissan Motor Co. Ltd. , Japan's third-largest carmaker, plans to offer $1.5 billion in asset-backed securities supported by car loans it made, a source close to the deal said on Friday.

Merrill Lynch and J.P. Morgan are jointly heading the deal's underwriting group that includes ABN AMRO, Citigroup Global Markets, Morgan Stanley and Williams Capital, the source said.

The following are early terms and conditions for "Nissan Auto Receivables Owner Trust (NAROT) 2004-B" based on market sources (subject to change):

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Class A1

Issue Amount $354.8 million

Average Life 0.33 year

Price Guidance 4-month Libor minus 1 bps area

Ratings A1-plus (S&P), P1 (Moody's)

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Class A2

Issue Amount $383 million

Average Life 1 year

Price Guidance eurodollar futures + 4 bps area

Ratings AAA (S&P), Aaa (Moody's)

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Class A3

Issue Amount $512 million

Average life 2.2 years

Price Guidance Interpolated swaps + 7 bps area

Ratings AAA (S&P), Aaa (Moody's)

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Class A4

Issue Amount $225 million

Average Life 3.59 years

Price Guidance Interpolated swaps + 5 to 6 bps

Ratings AAA (S&P), Aaa (Moody's)

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Expected Settlement June 24, 2004