Novation Holdings Inc. · OTC:NOHO
Novation — NovaStar Financial — Corporate Update (July 2007)
10 slides from Novation's corporate update, Jul 17, 2007
Slide 1: NovaStar Financial (NYSE-NFI) Investor Call
NovaStar Financial (NYSE-NFI) Investor Call July 17, 2007
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, regarding management’s beliefs, estimates, projections, and assumptions with respect to, among other things, the Company’s ability to cons
Slide 3: Benefits of Strategic Transaction
Benefits of Strategic Transaction Equity investment of $150 million strengthens balance sheet, reduces liquidity risk and provides additional flexibility Two prominent institutions, MassMutual & Jefferies, are buying in and expect to name members to NovaStar’s board Current NFI shareholders have an
Slide 4: $150 Million Capital Raise
$150 Million Capital Raise On July 16, 2007 MassMutual and Jefferies Capital Partners made a $48.8 million investment through the purchase of a newly issued Series D-1 of convertible preferred stock A one-for-four reverse stock split, to facilitate these transactions, is anticipated to occur on or a
Slide 5: Initial Investment
Initial Investment On July 16, 2007, MassMutual and Jefferies Capital Partners each paid $24.4 million for 9% Series D-1 convertible preferred stock with a total face value of $52.5 million Convertible into 7.5 million shares (pre-split) of common at any time, at the option of the holders, with init
Slide 6: Four-for-one Reverse Stock Split
Four-for-one Reverse Stock Split Anticipated to be on or about July 27, 2007 Every four common shares outstanding will be exchanged for one common share Common stock conversion price of Series D-1 and D-2 preferred will be adjusted to $28.00 to reflect reverse stock-split Fractional shares to be pai
Slide 7: Shareholder Rights Offering and Backstop
Shareholder Rights Offering and Backstop Proposed $101.2 million Rights Offering is expected to commence promptly after there is an effective registration statement filed with the SEC with respect to the offering, but not earlier than the filing of the second quarter 10-Q The Series D-2 Preferred sh
Slide 8: Shareholder Rights Offering and Backstop
Shareholder Rights Offering and Backstop Common shareholders and Series D-1 shareholders entitled to participate in the Rights Offering Subscribers will receive a non-transferable Right to purchase their pro-rata share of Series D-2 preferred offered in the Rights Offering Subscribers, other than Ma
Slide 9: REIT Dividend
REIT Dividend In the third quarter of 2007, subject to declaration by the Board, we intend to declare a dividend in order to satisfy certain requirements to distribute 2006 taxable income relating to our status as a REIT Dividend is expected to be distributed in the form of $157 million issuance of
Slide 10: Pre-split Distribution of Shares
Pre-split Distribution of Shares *Assumes that MassMutual and Jefferies Capital Partners participate in Rights Offering on a proportionate basis with existing NovaStar shareholders, percentages would be higher if MassMutual and Jefferies Capital Partners purchase additional shares under the standby