| Preferred Credit Corporation | |||
| Proposed Ticker: | PREF | 3347 Michelson, Suite 400 | |
| Exchange: | NASDAQ-National Market | Irvine, CA 92612 | |
| Industry: | Financial (SIC Code 6141) | (714) 474-0700 | |
| Type of Shares: | Common Shares | Filing Date: | 6/24/97 | |
| U.S. Shares Filed: | 5,000,000 | Filing Range: | $20.00 - $23.00 | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $107,500,000 | |
| Primary Shares: | 4,775,000 | Expenses: | $600,000 | |
| Secondary Shares: | 225,000 | Shares Out After: | 16,994,000 |
| Manager | Tier | Phone |
| Keefe, Bruyette & Woods, Inc. | Lead Manager | (212) 323-8470 |
| Piper Jaffray Incorporated | Co-manager | (612) 342-6220 |
| Issuer's Law Firm: | Troop Meisinger Steuber & Pasich, LLP |
| 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: | $27.19 | $9.69 | $0.52 | Assets: | $172.20 |
| Net Income: | $7.42 | $9.69 | $0.32 | Curr Assets: | |
| EPS: | $0.49 | $0.64 | $0.03 | Liabilities: | $152.50 |
| Prior EPS: | $0.11 | Curr Liabilities: | |||
| Cash Flow/Oper: | -$9.68 | Equity: | $19.70 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a specialized consumer finance company primarily engaged in the origination, purchase, sale and securitization of non-traditional consumer loans. The company's principal loan product consists of second mortgage loans to qualified individuals who generally have above average to superior credit and satisfy the company's underwriting criteria based on income, credit scores and other factors, but who have limited access to traditional mortgage-related financing generally because of a lack of equity in their homes. The company originates and acquires its core loans on a nationwide bases through three different production channels including retail offices, wholesale brokers and correspondent lenders. For the year ended December 31, 1996 and the three months ended March 31, 1997, 14.5% and 19.1%, respectively, of the company's core loan production was originated through its retail/consumer direct loan channel, 72.8% and 38.2%, respectively, was originated through wholesale brokers and 12.7% and 42.7%, respectively, was acquired from correspondent lenders, not including a one-time bulk purchase of $136.0 million in 1996. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay certain indebtedness, fund over collaterization requirements of future securitizations, fund loan originations and acquisitions, and for general corporate purposes. |