| 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 |
| Manager | Tier | Phone |
| 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 | $1.97 | Assets: | $51.04 |
| Net Income: | $6.88 | $4.80 | $0.27 | Liabilities: | $41.29 |
| EPS: | $0.71 | $0.51 | $0.02 | Equity: | $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. |
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