| Long Beach Financial Corporation | |||
| Ticker: | LBFC | 1100 Town & Country Road, Suite 900 | |
| Exchange: | NASDAQ-National Market | Orange, CA 92868 | |
| Industry: | Financial (SIC Code 6162) | (714) 541-5378 | |
| Type of Shares: | Common Shares | Filing Date: | 2/19/97 | |
| U.S. Shares: | 21,750,000 | Offer Date: | 4/28/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $8.00 - $9.00 | |
| Primary Shares: | 0 | Offer Price: | $6.50 | |
| Secondary Shares: | 21,750,000 | Gross Spread: | $0.46 | |
| Offering Amount: | $184,875,000 | Selling: | $0.26 | |
| Expenses: | $850,000 | Reallowance: | $0.10 | |
| Shares Out After: | 25,000,000 |
| Manager | Tier | Phone |
| Friedman, Billings, Ramsey & Co., Inc. | Lead Manager | (703) 312-9571 |
| Issuer's Law Firm: | Gibson, Dunn & Crutcher |
| Bank's Law Firm: | Brobeck, Phleger & Harrison |
| Auditor: | Deloitte & Touche |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 12/31/96 | ||||
| Revenue: | $53.97 | Assets: | $79.83 | ||
| Net Income: | $9.39 | Curr Assets: | |||
| EPS: | Liabilities: | $78.69 | |||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | -$40.75 | Equity: | $1.14 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a specialty finance company engaged in the business of originating, purchasing and selling sub-prime residential mortgage loans secured by one-to-four family residences. The company originates loans primarily through independent mortgage brokers. Prior to the Reorganization, the company's business has been conducted as a division of Old Long Beach under the name "Long Beach Mortgage Company". The company's primary operating strategy is to generate positive cash flow by selling for cash, at a premium, substantially all originated and purchased loans to institutional purchasers several times a quarter. the company does not currently sell loans through securitizations and therefore retains no residual interests, or the related risks, in the loans sold. As a result, the company has less default and prepayment risk than is typically inherent in a mortgage lender's business and has historically had a source of cash flow to fund lending and growth, reducing the need for other sources of financing. |
| Competition |
| As an originator of mortgage loans, the company faces intense competition, primarily from mortgage banking companies, commercial banks, credit unions, thrift institutions and finance companies. Many of these competitors are substantially larger and have more capital and other resources than the company and may have lower costs of funds than the company. Furthermore, the current level of gains realized by the company and its competitors on the sale of the type of loans they originate and purchase is attracting and may continue to attract additional competitors into the sub-prime mortgage market. |
| Use of Proceeds |
| The proceeds from the proposed offering will be distributed to selling shareholders. |