| Bingham Financial Services Corporation | |||
| Ticker: | BFSC | 31700 Middlebelt Road, Suite 125 | |
| Exchange: | NASDAQ-Small Cap Market | Farmington Hills, MI 48334 | |
| Industry: | Financial (SIC Code 6141) | (248) 932-9656 | |
| # of Employees: | 3 | ||
| Type of Shares: | Common Shares | Filing Date: | 8/27/97 | |
| U.S. Shares: | 1,200,000 | Offer Date: | 11/12/97 | |
| Non-U.S. Shares: | 0 | Filing Price: | $10.00 | |
| Primary Shares: | 1,200,000 | Offer Price: | $10.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.70 | |
| Offering Amount: | $12,000,000 | Selling: | $0.40 | |
| Expenses: | - | Reallowance: | $0.10 | |
| Shares Out After: | - | |||
| Spin out parent firm: | Sun Communities, Inc. | |||
| Manager | Tier | Phone |
| Roney & Co. | Lead Manager | (313) 225-5741 |
| Issuer's Law Firm: | Jaffe, Raitt, Heuer & Weiss, P.C. |
| Bank's Law Firm: | Honigman, Miller, Schwartz & Cohn |
| Auditor: | Coopers & Lybrand |
| Registrar/Transfer Agent: | State Street Bank and Trust Company |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 6/30/97 | 6/30/97 | ||||
| Revenue: | $0.12 | Assets: | $5.42 | ||
| Net Income: | $0.07 | Curr Assets: | |||
| EPS: | Liabilities: | $5.49 | |||
| Prior EPS: | $0.17 | Curr Liabilities: | |||
| Cash Flow/Oper: | $5.28 | Equity: | -$0.07 | ||
| Cash Flow/Fin: | -$5.45 | Cash: | |||
| Cash Flow/Inv: | -$5.45 | ||||
| Business Description |
| The company provides financing for new and previously owned manufactured homes. The company makes conventional loans under installment loan agreements secured by the borrower's manufactured home. The Company makes conventional loans under installment loan agreements secured by the borrower's manufactured home ("Contracts"). The Company intends to market property and casualty, credit life and warranty insurance relating to Contracts. The Company initially intends to offer loans on manufactured homes only but may offer other types of commercial and consumer loans, engage in the acquisition and sale of loans or engage in other related businesses in the future through initiation of new businesses or through acquisitions of existing businesses. The Company was formed by Sun Communities, Inc. (together with all entities owned or controlled by Sun Communities, Inc., "Sun"), a fully integrated real estate investment trust ("REIT"), in response to the growing need for providing timely and competitive financing to residents of Sun's manufactured home communities. Sun is one of the nation's largest owners and managers of manufactured housing communities. Established in 1975, Sun became a public company in 1993 with its common stock listed on the New York Stock Exchange under the symbol SUI. Sun has experienced rapid growth since becoming public, growing from 24 communities and 6,500 developed sites as of 1993 to 84 communities and over 30,500 developed sites as of July 31, 1997. |
| Competition |
| The manufactured housing finance industry is very fragmented and highly competitive. There are numerous non-traditional consumer finance sources serving this market. Specifically, Green Tree, founded in 1975 in order to provide financing for the purchase of manufactured houses, is the clear financing leader, with an approximate 28% market share in the financing of new manufactured housing shipments. It is the leading commercial lender to manufactured housing retail dealers. In addition, some of the manufactured housing industry's larger manufacturers, such as Clayton Homes and Oakwood Homes, maintain their own finance subsidiaries to provide financing for purchasers of their manufactured homes. Historically, traditional financing sources (commercial banks, savings and loans, credit unions and other consumer lenders), many ofwhich have significantly greater resources than the Company and may be able to offer more attractive terms to potential customers, have not consistently served this market. The Company believes that its relationship with Sun, its focus on community owners and operators, its prompt and consistent review of credit applications and its emphasis on providing a high level of service enable it to compete effectively for the purchase price financing and refinancing of manufactured homes. However, to the extent that traditional and non-traditional lenders significantly expand their activity in this market, the Company may be adversely affected. There is no assurance that the Company will be able to effectively compete against its existing or any future competitors. |
| Business Plan |
| The Company's business plan is based on the Company's belief that financing of manufactured homes is a profitable business filling a need in the expanding manufactured home industry. The Company believes its relationship with Sun under the Participants Support Agreement will provide immediate access to a significant and growing source of borrowers in Sun Communities.The Company's strategy is to market its services principally through Sun and other manufactured home community owners and their on-site managers. The Company intends to compete aggressively for manufactured housing loans through a systematic approach to all 84 housing communities currently owned and operated by Sun, but the Company also intends to market its services to other manufactured housing community owners and operators. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to repay the company's indebtedness to Sun under the Demand Note and repay Sun for services advanced, to fund loans and provide an equity base for borrowers, and for working capital and for general corporate purposes. |
| Officer Name | Title | Age |
| Gary A. Shiffman | Chairman of the Board and Secretary | 43 |
| William L. Mulvaney | Chief Operating Officer | 56 |
| Jeffrey P. Jorissen | President, Chief Executive Officer, Chief Financial Officer and Director | 52 |