| Ticker: FACO | 17305 Von Karman Avenue | |
| Exchange: NASDAQ-National Market | Irvine, California 92714 | |
| Industry: Financial | (714) 224-8500 |
| Type of Shares: | Class A Common Shares | Filing Date: | 5/13/96 | |
| U.S. Shares: | 3,500,000 | Offer Date: | 7/26/96 | |
| Non-U.S. Shares: | 0 | Filing Range: | $17.00 - $19.00 | |
| Primary Shares: | 3,500,000 | Offer Price: | $17.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.02 | |
| Offering Amount: | $63,000,000 | Selling: | $0.61 | |
| Expenses: | $869,000 | Reallowance: | $0.10 | |
| Shares Out After: | 14,100,000 |
| Manager | Tier | Phone |
| Friedman, Billings, Ramsey & Co., Inc. | Lead Manager | (703) 312-9500 |
| Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 12/31/95 | ||||
| Revenue: | $58.88 | Assets: | $66.99 | ||
| Net Income: | $30.54 | Liabilities: | $24.67 | ||
| EPS: | Equity: | $42.32 | |||
Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year, unaudited figures are partial year | |||||
| Business Description |
| First Alliance Mortgage Company, founded in 1971, originates, purchases, sells and services non-conventional mortgage loans secured primarily by first mortgages on single family residences. The Company focuses on a distinct segment of the home equity lending market by narrowly targeting its marketing efforts at homeowners believed by management of the Company, based on historic customer profiles, to be pre-disposed to using the Company's products and services while satisfying its underwriting guidelines. The Company originates loans through its centralized telemarketing operations, its direct mailing campaigns and its expanding retail branch network of 16 offices located in ten states. The Company intends to expand its existing retail branch network in selected states on a nationwide basis and currently plans to open at least four new retail branches per year. The Company's customers, who principally use the loans from the Company to consolidate indebtedness or to finance other consumer needs rather than to purchase homes, consist of two primary groups. The first category of the Company's customers are individuals who are unable to obtain mortgage financing from banks, savings and loan institutions and other companies that have historically provided loans to individuals with favorable credit characteristics. |
| Use of Proceeds |
| The Company intends to use between $43 million and $47 million of the net proceeds to repay, immediately after the Closing Date (or as soon thereafter as is practicable), the principal and interest outstanding under the S Distribution Notes. To the extent that the balance of the net proceeds exceeds the amount due under the S Distribution Notes, such excess will be used initially to repay any outstanding borrowings on the Company's Warehouse Financing Facility, then to fund costs associated with the Company's retail branch network and United Kingdom expansions and for general corporate purposes |
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