| IMH Commercial Holdings, Inc. | |||
| Ticker: | ICH | 20371 Irvine Avenue | |
| Exchange: | New York Stock Exchange | Santa Ana, CA 92707 | |
| Industry: | Financial (SIC Code 6798) | (714) 556-0122 | |
| # of Employees: | 9 | ||
| Type of Shares: | Common Shares | Filing Date: | 7/17/97 | |
| U.S. Shares: | 5,500,000 | Offer Date: | 8/4/97 | |
| Non-U.S. Shares: | 0 | Filing Range: | $14.00 - $16.00 | |
| Primary Shares: | 5,500,000 | Offer Price: | $15.00 | |
| Secondary Shares: | 0 | Gross Spread: | $1.05 | |
| Offering Amount: | $82,500,000 | Selling: | $0.63 | |
| Expenses: | $1,050,000 | Reallowance: | $0.10 | |
| Shares Out After: | 5,875,831 | |||
| Spin out parent firm: | Imperial Credit Mortgage Holdings, Inc. | |||
| Manager | Tier | Phone |
| PaineWebber Incorporated | Lead Manager | (212) 713-2626 |
| Everen Securities, Inc. | Co-manager | (312) 574-6859 |
| Oppenheimer & Company, Inc. | Co-manager | (212) 667-7400 |
| Stifel, Nicolaus & Company, Incorporated | Co-manager | (314) 342-2130 |
| Issuer's Law Firm: | Freshman, Marantz, Orlanski, Cooper & Klein |
| Bank's Law Firm: | Skadden, Arps, Slate, Meagher & Flom |
| Auditor: | KPMG Peat Marwick |
| Registrar/Transfer Agent: | Boston Equiserve Limited Partnership |
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 | ||
| 3/31/97 | 3/31/97 | ||||
| Revenue: | $0.37 | Assets: | $32.25 | ||
| Net Income: | -$2.69 | Curr Assets: | |||
| EPS: | Liabilities: | $17.23 | |||
| Prior EPS: | -$10.02 | Curr Liabilities: | |||
| Cash Flow/Oper: | $31.95 | Equity: | $15.02 | ||
| Cash Flow/Fin: | -$17.54 | Cash: | $4.40 | ||
| Cash Flow/Inv: | -$17.54 | ||||
| Business Description |
| The company is a real estate investment trust, (REIT). The company was organized for the purpose of originating, purchasing, securitizing and selling commercial mortgages and investing in commercial mortgages and commercial mortgage backed securities. The company was formed to seek opportunities in the commercial mortgage market. Commercial mortgage assets include mortgage loans on condominium-conversions, multifamily and cooperative apartment properties and mortgage loans on commercial properties, such as industrial and warehouse space, office buildings, retail space and shopping malls, hotels and motels, nursing homes, hospitals, congregate care facilities and senior living centers. The company will also purchase mortgage-backed securities on commercial properties, such as pass-through certificates, and REMICs. |
| Competition |
| The Company will face competition in its Conduit Operations from other financial institutions, including but not limited to banks and investment banks. Many of the institutions with which the Company will compete in its Conduit Operations have significantly greater financial resources than the Company. Other multifamily residences, self-storage facilities, retail shopping facilities, office buildings and combination warehouse/industrial facilities located in the areas of the mortgaged properties securing the Company's Commercial Mortgages compete with the mortgaged properties of such types to attract residents, retail correspondents, tenants and customers. The leasing of real estate is highly competitive. The principal means of competition are price, location and the nature and condition of the facility to be leased. A borrower under a Commercial Mortgages competes with all lessors and developers of comparable types of real estate in the area in which the mortgaged property is located. Such lessors or developers could have lower rentals, lower operating costs, more favorable locations or better facilities. While a borrower under a Commercial Mortgage may renovate, refurbish or expand the mortgaged property to maintain it and remain competitive, such renovation, refurbishment or expansion may itself entail significant risk. Increased competition could adversely affect income from the market value of the mortgaged properties. In addition, the business conducted at each mortgaged property may face competition from other industries and industry segments. |
| Business Plan |
| The company's business strategy relies on short-term borrowings to fund long-term Commercial Mortgages and investment securities available for sale. In the event the company is not able to renew or replace maturing borrowings, the company could be required to sell, under adverse market conditions, all or a portion of its Commercial Mortgages and investment securities available for sale and could incur losses as a result. In addition, in such event the company may be required to terminate hedge positions, which could result in further losses to the company. Such events could have a material adverse effect on the company. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to provide funding for the company's long term investment operations and its conduit operations and for general corporate purposes. |
| Name of Shareholder | % Owned Before | % Owned After |
| Imperial Credit Mortgage Holdings, Inc. | 65.70% | 9.80% |
| William S. Ashmore | 8.80% | |
| Joseph R. Tomkinson | 8.80% | |
| Richared J. Johnson | 7.10% |
| Officer Name | Title | Age |
| Joseph R. Tomkinson | Chairman of the Board and Chief Executive Officer of ICH and Chairman of the Board and Chief Executive Officer of ICCC | 49 |
| William S. Ashmore | President and Chief Operating Officer of ICH, Executive Vice President and Director of ICCC | 47 |
| William D. Endresen | Senior Vice President of ICH and President and Director of ICCC | 42 |
| Mary C. Glass-Schannault | Senior Vice President of ICH and Senior Vice President of ICCC | 43 |
| Richard J. Johnson | Senior Vice President, Chief Financial Officer, Treasurer and Secretary of ICH and ICCC and Director of ICCC | 35 |