Apex Mortgage Capital, Inc.
Proposed Ticker:AXX
Exchange:New York Stock Exchange Los Angeles, CA
Industry:Financial (SIC Code 6798)
# of Employees:0

Filing Information
Type of Shares:Common Shares Filing Date:9/19/97
U.S. Shares Filed:10,000,000 Filing Range:$14.00 - $16.00
Non-U.S. Shares Filed:0 Offering Amount: $150,000,000
Primary Shares:10,000,000 Expenses: -
Secondary Shares:0 Shares Out After:

Primary Underwriting Group
ManagerTierPhone
Merrill Lynch & Co.Lead Manager (212) 449-4600
PaineWebber IncorporatedCo-manager (212) 713-2626
Stifel, Nicolaus & Company, IncorporatedCo-manager (314) 342-2130

Business Description
The company is a real estate investment trust, (REIT). The company will primarily invest in high quality mortgage and mortgage related securities. The company intends to structure its portfolio to maintain a minimum weighted average rating of at least AA or Aa by Standard & Poor's Ratings Services or Moody's Investores Service, Inc., respectively. The company will use its equity captial and borrowed funds to seek to generate income based on the difference between the yield on its mortgage assets and the cost of its borrowings. The company will elect to be taxed as a real estate investment trust under the Internal Revenue Code of 1986, as amended. The company will not generally be subject to federal taxes on its income to the extent that it distributes its net income to its stockholders and maintains its qualification as a REIT.

Business Plan
The company's principal business objective is to produce net interest income on its Mortgage Assets while maintaining a cost efficient organizational structure in order to generate Net Income for distribution to its stockholders. To achieve its business objective and generate dividend yields that provide a competitive rate of return for stockholders, the company's strategy is to: (I) purchase primarily single-family Mortgage Assets, (ii) manage the credit risk of its Mortgage Assets, (iii) finance purchases of Mortgage Assets, (iv) seek to structure its borrowings, (v) utilize interest rate caps and (vi) seek to minimize payment risk.

Use of Proceeds
The proceeds from the proposed offering will be used for general corporate purposes.

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