Manhattan Bridge Capital, Inc · NASDAQ:LOAN
Manhattan Bridge Capital — IPO Roadshow (July 2014)
15 slides from Manhattan Bridge Capital's IPO roadshow presentation, Jul 10, 2014
Slide 1: Manhattan Bridge Capital
__ aaa MANHATTAN BRIDGE CAPITAL
Slide 2: Manhattan Bridge Capital NASDAQ: LOAN
— | MANHATTAN BRIDGE CAPITAL NASDAQ: LOAN
Slide 3: Forward-Looking Statements
Forward - Looking Statements 2 This prospectus includes forward - looking statements. All statements other than statements of historical facts contained in this prospectus, including statements regarding our future results of operations and financial position, strategy and plans, and o ur expectatio
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
Slide 5: Offering Summary
Offering Summary Issuer Manhattan Bridge Capital Listing Ticker LOAN (NASDAQ) Offering Size $10M Issue Common Shares Common Shares Offered TBD Price TBD Overallotment 15% Estimated Net Proceeds $8.9M 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 • H igher 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: Existing Loan Portfolio: Deal Types
Residential Developers $13.8M Commercial Developers $1.2M Mixed-Use Developers $0.5M 89% 8% 3% Deal Types Existing Loan Portfolio 7 ( As of 3/31/14 ) 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 • $50K - $1.4M Collateral • Senior Mortgage Term • Up to one year Rate • 12% - 15% (current pay) Upfront Fees • 1% - 5% Payments • Typically, interest payable monthly and principal payable at maturity Covenants • According to company’s lending policy Criteria • Compelling exit st
Slide 11: Financial Highlights
Financial Highlights Portfolio Overview Balance Sheet 9 • Currently managing approximately 75 loans • Completed more than 280 transactions in 7 years worth more than $ 70M • 2013 revenues of $2.3M compared to $1.8M 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 23 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 Conversion
MBC REIT Model Conversion • Conversion to a REIT tax pass - through entity • Distribute 90% of earnings to shareholders • Post offering, 5 largest shareholders will own less than 50% of shares outstanding • Lower leverage compared to peers • High capital turnover results in increased liquidity 13
Slide 15: 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