| HomeSide, Inc. | |||
| Ticker: | HLI | 7301 Baymeadows Way | |
| Exchange: | New York Stock Exchange | Jacksonville, FL 32256 | |
| Industry: | Financial (SIC Code 6162) | (904) 281-3000 | |
| Type of Shares: | Common Shares | Filing Date: | 12/12/96 | |
| U.S. Shares: | 7,350,000 | Offer Date: | 1/30/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $16.00 - $18.00 | |
| Primary Shares: | 7,350,000 | Offer Price: | $15.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.96 | |
| Offering Amount: | $124,950,000 | Selling: | $0.56 | |
| Expenses: | $2,000,000 | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Merrill Lynch & Co. | Lead Manager | (212) 449-4600 |
| Smith Barney Inc. | Co-manager | (212) 723-7300 |
| Issuer's Law Firm: | Hutchins Wheeler & Dittmar |
| Bank's Law Firm: | Brown & Wood |
Dollar amounts in U.S. millions except for per share data | |||||
| 3 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 11/30/96 | 11/30/96 | |||
| Revenue: | $301.50 | $91.64 | Assets: | $2,858.71 | |
| Net Income: | $52.70 | $12.65 | Curr Assets: | ||
| EPS: | Liabilities: | $2,470.78 | |||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $387.93 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is one of the largest full-service residential mortgage banking companies in the United States, formed through the acquisition of the mortgage banking operations of The First National Bank of Boston and Barnett Banks, Inc. The company's strategy emphasizes variable cost mortgage origination and low cost servicing. On a combined basis the company's origination volume and servicing portfolio would have been $14.7 billion and $75 billion, respectively, for and as of the year ended December 31, 1995, ranking the company as the 5th largest originator and 7th largest servicer in the United States for 1995 based on data published by National Mortgage News. For and as of the nine months ended November 30, 1996, the company's loan originations and acquisitions were $18.9 billion and its servicing portfolio was $88.7 billion. The company's business strategy is to increase the volume of its loan originations and the size of its servicing portfolio while continuing to improve operating efficiencies. |
| Business Plan |
| The company plans to build its core operations through (i) improved economies of scale in servicing costs; (ii) increased productivity using proprietary technology; and (iii) expanded and diversified variable cost origination channels. In addition, the company intends to pursue additional loan portfolio acquisitions and strategic origination relationships similar to the existing BKB and Barnett arrangements. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay at the applicable redemption premium of 11.25%, $70 million principal amount of the company's 11.25% Senior Secured Second Priority Notes Due 2003; to reduce amounts outstanding under a bank credit facility extended to certain of the company's subsidiaries. |