Delta Financial Corporation
Ticker: DFC 1000 Woodbury Road, Suite 200
Exchange: New York Stock Exchange Woodbury, New York 11797
Industry: Financial (516) 364-8500

Type of Shares:Common Shares Filing Date:9/3/96
U.S. Shares:4,000,000 Offer Date:10/31/96
Non-U.S. Shares:0 Filing Range:$14.50 - $16.50
Primary Shares:4,000,000 Offer Price:$16.50
Secondary Shares:0 Gross Spread:$1.15
Offering Amount: $62,000,000 Selling:$0.65
Expenses:$800,000 Reallowance:$0.10
Shares Out After:14,653,000

ManagerTierPhone
Natwest Securities LtdLead Manager (212) 602-4800
Piper Jaffray IncorporatedCo-manager (612) 342-6000
Prudential Securities IncorporatedCo-manager (212) 214-3000

Auditor: KPMG Peat Marwick
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$36.14$30.33$13.79Assets:$155.81
Net Income:$2.61$8.70$1.04Liabilities:$111.08
EPS:$0.22$0.57Equity:$44.73

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 specialty consumer finance company that has engaged in originating, acquiring, selling and servicing home equity loans since 1982. Throughout its 14 years of operating history, the company has focused on lending to individuals who generally have impaired or limited credit profiles or higher debt to income ratios and typically have substantial equity in their homes. The company makes loans to these borrowers for such purposes as debt consolidation, home improvement, refinancing or education, and these loans are primarily secured by first mortgages on one- to four-family residential properties. The company originates home equity loans through licensed mortgage brokers and other real estate professionals who submit loan applications on behalf of the borrower. The company also purchases from approved mortgage bankers and financial institutions loans that conform to the company's underwriting guidelines.

Use of Proceeds
The proceeds from the proposed offering will be used to fund a distribution of $23 million to the existing stockholders in connection with termination of Delta Funding Corporation's status as a Subchapter S Corporation and to repay amounts outstanding under the company's warehouse lines.

Last updated: 12/8/96

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