| Ticker: MMGC | 1000 Parkwood Circle, Suite 500 | |
| Exchange: NASDAQ-National Market | Atlanta, Georgia 30339 | |
| Industry: Financial | (770) 952-6700 |
| Type of Shares: | Common Shares | Filing Date: | 9/20/96 | |
| U.S. Shares: | 2,000,000 | Offer Date: | 11/19/96 | |
| Non-U.S. Shares: | 0 | Filing Price: | - | |
| Primary Shares: | 2,000,000 | Offer Price: | $10.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.70 | |
| Offering Amount: | $32,200,000 | Selling: | $0.38 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | 12,000,000 | |||
| Spin out parent firm: | Mego Financial Corp. | |||
| Manager | Tier | Phone |
| Oppenheimer & Company, Inc. | Lead Manager | (212) 667-7402 |
| Friedman, Billings, Ramsey & Co., Inc. | Co-manager | (703) 312-9500 |
| Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 8/31/95 | 5/31/96 | 5/31/95 | 5/31/96 | ||
| Revenue: | $13.58 | $17.39 | $6.83 | Assets: | $40.50 |
| Net Income: | $3.64 | $4.63 | $1.20 | Liabilities: | $25.09 |
| EPS: | $0.36 | $0.46 | $0.12 | Equity: | $15.41 |
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year | |||||
| Business Description |
| The company is a specialized consumer finance company that originates, purchases, sells and services consumer loans consisting primarily of home improvement loans secured by liens on the improved property. Through its network of independent correspondent lenders and home improvement construction contractors, the company initially originated only home improvement loans insured under the Title I credit insurance program of the Federal Housing Administration. The Title I program provides for insurance of 90% of the principal balance of the loan, and certain other costs. The company began offering conventional uninsured home improvement loans and debt consolidation loans through its Correspondents in May 1996 and such loans have become a significant portion of its current loan originations. The company's borrowers are individuals who own their home and have verifiable income but may have limited access to traditional financing sources due to insufficient home equity, limited Credit history or high ratios of debt service to income. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to support and expand its existing business; to repay debt and for general corporate purposes. |
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