| National Auto Finance Company, Inc. | |||
| Ticker: | NAFI | 621 N.W. 53rd Street, Suite 200 | |
| Exchange: | NASDAQ-National Market | Boca Raton, FL 33487 | |
| Industry: | Financial (SIC Code 6141) | (561) 997-2747 | |
| Type of Shares: | Common Shares | Filing Date: | 10/8/96 | |
| U.S. Shares: | 2,000,000 | Offer Date: | 1/29/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $7.00 - $9.00 | |
| Primary Shares: | 2,000,000 | Offer Price: | $8.50 | |
| Secondary Shares: | 0 | Gross Spread: | $0.60 | |
| Offering Amount: | $16,000,000 | Selling: | $0.35 | |
| Expenses: | $600,000 | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Raymond James & Associates, Inc. | Lead Manager | (813) 573-8108 |
| Cruttenden Roth Incorporated | Co-manager | (800) 678-9147 |
| Issuer's Law Firm: | Weil, Gotshal & Manges |
| Bank's Law Firm: | Greenberg Traurig Hoffman Lipoff Rosen & Quentel |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 6/30/96 | 6/30/95 | 6/30/96 | ||
| Revenue: | $7.81 | $5.63 | $3.61 | Assets: | $15.02 |
| Net Income: | $2.21 | $1.04 | $1.23 | Curr Assets: | |
| EPS: | Liabilities: | $9.05 | |||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $5.96 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| National Auto Finance Company, Inc. is a specialized consumer finance company engaged in the purchase, securitization and servicing of motor vehicle retail installment contracts originated by automobile dealers for Non-Prime Consumers. The company purchases Loans principally from manufacturer-franchised Dealers in connection with their sale of new and used automobiles. The company's strategy is to develop a network of Dealers throughout the United States that will refer Non-Prime Consumer Loan application to the company. To implement this strategy, the company offers to Dealers products and services designed to enhance their ability to sell vehicles to Non-Prime Consumers. The company markets these products and services to Dealers through the efforts of its direct sales force and through a strategic referral and marketing alliance with a financial institution which has established relationships with Dealers. |
| Competition |
| The non-prime credit market is highly fragmented, consisting of a few national and many regional and local competitors. Existing and potential competitors include well-established financial institutions, such as commercial banks, credit unions, savings and loan associations, small loan companies, leasing companies and captive finance companies owned by automobile manufacturers and others. Many of these financial institutions do not consistently solicit business in the Non-Prime Consumer credit market. |
| Business Plan |
| The company expects to increase the number of loans it purchases, securitizes and services by 1) utilizing its Dealer Relations Managers to market the company's products and services directly to the Dealers and 3) forming strategic referral and marketing alliances with financial institutions that have established relationships with Dealers. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to support securitizations and other long-term financing arrangements; to repay a portion of the subordinated indebtedness held by certain affiliates of the company; and for working capital and other general corporate purposes. |