Manhattan Bridge Capital, Inc · NASDAQ:LOAN
Manhattan Bridge Capital — IPO Roadshow (May 2015)
16 slides from Manhattan Bridge Capital's IPO roadshow presentation, May 18, 2015
Slide 1: Manhattan Bridge Capital
__ aaa MANHATTAN BRIDGE CAPITAL
Slide 2: Manhattan Bridge Capital NASDAQ: LOAN
— | MANHATTAN BRIDGE GCAPITAL NASDAQ: LOAN
Slide 3: Forward-Looking Statements
Forward - Looking Statements 2 This presentation includes forward - looking statements. All statements other than statements of historical facts contained in thi s presentation, including statements regarding our future results of operations and financial position, strategy and plans, and ou r expec
Slide 4: Free Writing Prospectus Statement
Free Writing Prospectus Statement 3 This presentation highlights basic information about us and the offering. Because it is a summary, it does not contain all the information that you should consider before investing. We have filed a registration statement (including a prospectus) with the SEC for t
Slide 5: Offering Summary
Offering Summary Issuer Manhattan Bridge Capital Listing Ticker LOAN (NASDAQ) Offering Size Approximately $4,500,000 (100% Primary) Securities Offered Common Shares Over - Allotment 15% (100% Primary) Use of Proceeds Working Capital Sole Bookrunner Aegis Capital Corp. 4
Slide 6: Overview
Overview • A leading “hard money lender” in the New York metropolitan market • Provide short - term secured financing to real estate investors in the New York metropolitan area • Higher rates than conventional banks for faster approval • Typical loans range from $300K - $600K 5
Slide 7: Business Model
Business Model • Generate above average, consistent returns with low risk • Rigorous due diligence comparable to a conventional bank but with quick approval • Focused on asset and cash flow protection and net worth of principals • Disciplined underwriting, deal structuring and portfolio management •
Slide 8: Deal Types
Deal Types Existing Loan Portfolio 7 Purchase, Fix and Flip Small/New Construction Projects – single and multi - units Income Producing Properties
Slide 9: Lending Process
Lending Process Discipline Origination - Generate deal flow - Opportunity is matched with lending criteria Conservative Loan Underwriting - Thorough due diligence process - Emphasize principal protection to ensure margin of safety Rigorous Portfolio Management - Continuous monitoring of underlying p
Slide 10: Loan Structure
Loan Structure Size • Typically, $50K - $1.3M Collateral • Senior Mortgage Term • Up to one year Rate • 12% - 15% (current pay) Upfront Fees • 1% - 3% Payments • Typically, interest payable monthly and principal payable at maturity Covenants • According to company’s lending policy Criteria • Compell
Slide 11: Financial Highlights
Financial Highlights Portfolio Overview Balance Sheet 10 • Currently managing approximately 75 loans • Completed more than 350 transactions in 8 years worth more than $85M • 2014 revenues of $2.9M compared to $2.3M the prior year • Since commencing this business in 2007, we have never foreclosed on
Slide 12: Organization
Organization • Responsible for overall portfolio management • Interviews each borrower • Oversees due diligence and decision making process • Monitors portfolio daily and interacts with borrowers CEO/Portfolio Manager • Preliminary screening and due diligence of financial conditions • Monitors budge
Slide 13: Management
Management Assaf Ran, CEO Vanessa Kao, CFO • Assaf Ran is the founder of Manhattan Bridge Capital and has been the company’s CEO and President since 1989 • Assaf has 24 years of senior management experience leading public and private businesses • Founder of DAG Media and grew revenues to over $12M •
Slide 14: MBC REIT Model
MBC REIT Model • REIT tax pass - through entity • Distribute 90% of earnings to shareholders • 5 largest shareholders own less than 50% of shares outstanding • Lower leverage compared to peers • High capital turnover results in increased liquidity • Company has increased its dividend and is currentl
Slide 15: Capital Structure (Pre-Offering)
Capital Structure (Pre - Offering) 14 Shares Outstanding¹ % Common Shares 6,095,089 97.4% Equity Awards - Stock Options 2 71,000 1.1% Warrants 3 91,319 1.5% Adjusted Shares Outstanding 6,257,408 100% Short - term Debt $1,100,000 Credit Line 4 $14,000,000 Pro Forma Debt $15,100,000 1 As of 5/15/15. 2
Slide 16: Conclusion
Conclusion • Advantages in both strong and recessionary markets • Strong management team and proven track record • Focused and specialized with one product – hard money loans • Low risk of default with short - term, conservative LTV loans with thorough due diligence and transaction structuring • Ext