Manhattan Bridge Capital, Inc · NASDAQ:LOAN
Manhattan Bridge Capital — IPO Roadshow (March 2016)
17 slides from Manhattan Bridge Capital's IPO roadshow presentation, Mar 23, 2016
Slide 1: MBC Funding II Corp. March 2016
NASDAQ: LOAN MBC Funding II Corp. March 2016
Slide 2: Forward-Looking Statements
Forward - Looking Statements 2 This presentation includes forward - looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding our future results of operations and financial position, strategy and plans, and our expecta
Slide 3: 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 t he information that you should consider before investing. We have filed a registration statement (including a prospectus) with the SEC for
Slide 4: Offering Summary
Offering Summary Issuer MBC Funding II Corp. (“Funding”), a wholly owned subsidiary of Manhattan Bridge Capital, Inc. (“MBC”) NYSE MKT Symbol: TBD Offering Size: $8.5 M plus 15% over - allotment, total of $9.775M if exercised Issue: Senior Secured Notes (the “Notes”) Issue Price: $1,000.00 per Note
Slide 5: MBC Funding II Corp.: The Collateral Vehicle
MBC Funding II Corp.: THE COLLATERAL VEHICLE • For the offering, MBC has organized a wholly - owned subsidiary: MBC Funding II Corp. (“Funding”) • Funding will be issuing the Notes to investors in this offering • Funding will use the net proceeds of this offering to purchase a pool of mortgage loans
Slide 6: Overview of MBC
Overview of MBC • 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 • H igher rates than conventional banks for faster approval • Typical loans range from $300K - $600K 6
Slide 7: Business Model of MBC
Business Model of MBC • 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 manag
Slide 8: Deal Types
Deal Types Existing Loan Portfolio of MBC 8 Purchase, Fix and Flip Small/New Construction Projects – single and multi - units Income Producing Properties
Slide 9: MBC Lending Process
MBC 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 underlyi
Slide 10: MBC Loan Structure
MBC Loan Structure Size • $50K - $1.475M; maximum permitted loan amount is $2.0M Collateral • Senior Mortgage Term • Up to one year; with multiple extension options Rate • 12% - 15% (current pay) Upfront Fees • 1% - 3% Payments • Interest payable monthly and principal payable at maturity Covenants •
Slide 11: Collateral Pool
Collateral Pool 11 Number of Loans Principal Balance Interest Rate Average Months to Maturity (1) Residential: 22 $8,903,500 12.2% 7.80 Commercial: 1 $1,000,000 12.0% 7.53 Mixed Use: 1 $300,000 12.0% 6.70 Total: 24 $10,203,500 (2) 12.2% 7.74 (1) Without giving effect to extension options. Calculated
Slide 12: MBC Financial Highlights
MBC Financial Highlights Portfolio Overview Balance Sheet 12 • Currently managing approximately 100 loans • Completed more than 420 transactions in 9 years worth more than $100M • 2015 revenues of $4.0M compared to $2.9M in 2014 • Since commencing this business in 2007, MBC has never foreclosed on a
Slide 13: MBC Organization
MBC 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 b
Slide 14: MBC Management & Board
MBC Management & Board 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
Slide 15: 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 15
Slide 16: The Yield
THE YIELD • Notes pay cash interest of TBD, payable monthly; beginning after the three month anniversary of the issue date • As compared to — as reported in the Wall Street Journal on 3/14/16: • 2 - year Treasury Notes @0.9557% • 10 - year Treasury Notes @1.9468% • 5 - year CDs @ 2.27% 16
Slide 17: Conclusion
Conclusion • Advantages in both strong and recessionary markets • Strong MBC 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 •