| IPO Company Profile |
| SEC Filings | Peer IPO Companies |
| Atherton Capital Corporation |
| 1001 Bayhill Drive, Suite 155, San Bruno, CA 94066 * (650) 827-7800 |
| The company is a leading specialty commercial finance company engaged in the business of financing seasoned, multi-unit operators of established national and regional franchise concepts. |
| Manager | Tier | Phone |
| Piper Jaffray Incorporated | Lead Manager | (612) 342-6220 |
| PaineWebber Incorporated | Co-manager | (212) 713-2626 |
| NASNTL: | ATHR | Financial: | SIC 6162 | |
| Type of Shares: | Common Shares | Filing Date: | 6/3/98 | |
| U.S. Shares Filed: | 0 | Filing Price: | - | |
| Non-U.S. Shares Filed: | 0 | Offering Amount: | $60,000,000 | |
| Primary Shares: | 0 | Expenses: | - | |
| Secondary Shares: | 0 | Post-IPO Shares: | ||
| Employees: | 37 |
| Issuer's Law Firm: | Wilson, Sonsini, Goodrich & Rosati |
| Bank's Law Firm: | Orrick, Herrington & Sutcliffe |
| Auditor: | KPMG Peat Marwick |
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 | ||
| 12/31/97 | 3/31/98 | 3/31/97 | 3/31/98 | ||
| Revenue: | $9.51 | $0.83 | $7.26 | Assets: | $268.55 |
| Net Income: | $2.89 | -$0.46 | $3.80 | Curr Assets: | |
| EPS: | $0.13 | -$0.02 | $0.18 | Liabilities: | $261.08 |
| Prior EPS: | Curr Liab: | ||||
| Cash Flow/Oper: | -$3.61 | Equity: | $7.47 | ||
| Cash Flow/Fin: | $2.88 | Cash: | $0.61 | ||
| Cash Flow/Inv: | -$0.14 | ||||
| Competition |
| As a specialty franchise finance lender, the Company faces intense competition, primarily from other franchise lenders, commercial banks, thrift institutions, diversified finance companies, asset-based lenders, specialty commercial finance companies and real estate investment trusts, among others. Many of these competitors are substantially larger and have considerably greater financial, marketing and capital resources than the Company. In addition, certain of the Company's competitors may have higher risk tolerances or different risk assessments which could allow them to build market share or establish lower margin requirements and pricing levels. Competition may also be affected by fluctuations in interest rates and general economic conditions. During periods of rising interest rates, competitors that have locked in low borrowing costs may have a competitive advantage. During periods of declining rates, competitors may solicit the Company's customers to refinance their loans. During economic slowdowns or recessions, the Company's borrowers may experience financial difficulties and may be receptive to offers by the Company's competitors. Furthermore, the current level of gains realized by the Company and its competitors on the sale of franchise loans is attracting and may continue to attract additional competitors into the market with the possible effect of lowering gains that may be realized on the Company's loan sales. |
| Business Plan |
| The Company's goal is to be the leading financial resource for the franchise industry. The Company is committed to quality loan originations, product innovation, superior customer service and maximization of stockholder value. The following strategic elements are integral to the Company's success in achieving its goal: (I) Increase Lending to Existing Markets, (ii) Expand into New Franchise Markets, (iii) Develop Additional and Improve Existing Financial Products, (iv) Diversify Revenue Sources, (v) Provide Superior Customer Service, (vi) Maintain High Credit Standards, (vii) Improve Borrowing Spread and Diversify Funding Sources and (vii) Improve Secondary Market Execution. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to fund future loan originations, for general corporate purposes and to reduce outstanding borrowings under the Warehouse Line and the Facility. |