| New Century Financial Corporation | |||
| Ticker: | NCEN | 4910 Birch Street, Suite 100 | |
| Exchange: | NASDAQ-National Market | Newport Beach, CA 92660 | |
| Industry: | Financial (SIC Code 6162) | (714) 440-7030 | |
| Type of Shares: | Common Shares | Filing Date: | 4/18/97 | |
| U.S. Shares: | 3,500,000 | Offer Date: | 6/25/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $8.50 - $10.50 | |
| Primary Shares: | 2,900,000 | Offer Price: | $11.00 | |
| Secondary Shares: | 600,000 | Gross Spread: | $0.77 | |
| Offering Amount: | $33,250,000 | Selling: | $0.44 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - |
| Manager | Tier | Phone |
| Montgomery Securities | Lead Manager | (415) 627-2100 |
| Piper Jaffray Incorporated | Co-manager | (612) 342-6220 |
| Issuer's Law Firm: | O'Melveny & Meyers |
| Bank's Law Firm: | Brobeck, Phleger & Harrison |
| Auditor: | KPMG Peat Marwick |
| Registrar/Transfer Agent: | U. S. Stock Transfer Corporation |
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 | ||
| 12/31/96 | 3/31/97 | 3/31/96 | 3/31/97 | ||
| Revenue: | $14.51 | $12.59 | $0.04 | Assets: | $64.64 |
| Net Income: | $1.34 | $2.35 | -$0.50 | Curr Assets: | |
| EPS: | Liabilities: | $60.24 | |||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | -$0.52 | Equity: | $4.40 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a specialty finance company engaged in the business of originating, purchasing, selling and servicing subprime mortgage loans secured primarily by first mortgages on single family residences. The company originates loans through independent loan brokers and through direct solicitation of borrowers. From the commencement of lending operations in February 1996 through March 31, 1997, the company originated and purchased $607.5 million in mortgage loans. The company's loan originations and purchases have grown from $4.3 million for the first quarter of 1996 to $250.6 million for the first quarter of 1997. The company's borrowers generally have substantial equity in the property securing the loan, but have impaired or limited credit profiles or higher debt-to-income ratios than traditional mortgage lenders allow. The company's borrowers also include individuals who, due to self-employment or other circumstances, have difficulty verifying their income, and individuals who prefer the prompt and personalized service provided by the company. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to fund future loan originations and purchases, to fund securitization transaction costs, to repay amounts outstanding under the company's revolving credit facility and for general corporate purposes. |