| 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 |
| Manager | Tier | Phone |
| Natwest Securities Ltd | Lead Manager | (212) 602-4800 |
| Piper Jaffray Incorporated | Co-manager | (612) 342-6000 |
| Prudential Securities Incorporated | Co-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 | $13.79 | Assets: | $155.81 |
| Net Income: | $2.61 | $8.70 | $1.04 | Liabilities: | $111.08 |
| EPS: | $0.22 | $0.57 | Equity: | $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. |
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