RAC Financial Group, Inc.
Ticker: RACF 16901 Dallas Parkway, Suite 200
Exchange: NASDAQ-National Market Dallas, Texas 75248
Industry: Financial (214) 380-5995

Type of Shares:Common Shares Filing Date:9/8/95
U.S. Shares:3,300,000 Offer Date:2/1/96
Non-U.S. Shares:0 Filing Range:$15.00 - $17.00
Primary Shares:2,900,000 Offer Price:$17.00
Secondary Shares:400,000 Gross Spread:$1.19
Offering Amount: $52,800,000 Selling:$0.71
Expenses:$750,000 Reallowance:$0.10
Shares Out After:12,274,908

ManagerTierPhone
Bear, Stearns & Co. Inc.Lead Manager (212) 272-2000

Auditor: Ernst & Young
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
9/30/95 12/31/95 12/31/94 9/30/95
Revenue:$36.07$17.90$1.97Assets:$51.04
Net Income:$6.88$4.80$0.27Liabilities:$41.29
EPS:$0.71$0.51$0.02Equity:$9.75

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 Dallas based home improvement loan company. Through the Company's network of independent correspondent lenders and independent home improvement contractors, as well as its recently initiated direct marketing effort, the Company offers uninsured conventional home improvement loans and Title I home improvement loans under the Title I credit insurance program. In addition, the Company recently began offering various Conventional Loans to certain qualified borrowers under Title I "look-alike" programs that in some cases permit the loan proceeds to be used for purposes other than home improvement. The Company sells substantially all of its loans through its securization program and retains rights to service these loans. The Company originated an aggregate of $100.4 million of loans in the fiscal year ended September 30, 1995, of which $7.0 million, $11.2 million, $14.6 million and $67.7 million were originated during the first, second, third and fourth quarters respectively. In addition, the Company made bulk purchases of loans of $108.4 million during fiscal 1995.

Use of Proceeds
Proceeds from the proposed offering will be used to repay debt to fund loan activities,to redeem Series A and Series B preferred shares, to repay certain interim subordinated debt and for general corporate purposes.

Last updated: 10/28/96

©1996 IPO Data Systems, Inc. - All rights reserved.