Franklin
Mortgage
Funding
Announces Completed IPO and Name Change Robert Pilcowitz: SOUTHFIELD, Mich., May 10 /PRNewswireFirstCall/ — Franklin Capital Group Ltd. (TSX: FMF.UN), which recently completed an initial public offering on the Toronto Stock Exchange, has announced FMF Capital LLC, its operating subsidiary, is nearing conclusion of its regulatory and licensing process and should begin operations under its new name FMF Capital in June.
FMF Capital Group Ltd., one of the nation’s leading wholesale nonprime residential mortgage lenders, is listed on the Toronto Stock Exchange (TSX) under the symbol FMF.UN. BMO Nesbitt Burns, Inc., National Bank Financial Inc., TD Securities Inc.,
Canaccord Capital Corporation, First Associates Investment Inc., and Sprott Securities Inc. were the underwriters. FMF Capital Group Ltd. acquired approximately a 60 percent interest in FMF Capital LLC, funded by an offering of income participating securities [IPS(TM)] totaling Cdn$197 million and separately issued notes totaling approximately Cdn$22 million. FMF Capital LLC had an enterprise value of almost US$300 million on March 24, 2005, the date the shares began trading on the Toronto Stock Exchange.
“FMF Capital has experienced tremendous growth, with more than US$2 billion in production in 2004, US$724 million in the fourth quarter alone,” said Robert Pilcowitz, CEO of FMF Capital LLC. “With a publicly traded parent company, and an enterprise value of almost US$300 million, FMF Capital will be better positioned to sell our mortgage originations and attract superior personnel.” “The Company’s success is a testament to the hard work and dedication of our more than 400 employees,” said Edan King, COO of FMF Capital. “Our team has been building the infrastructure for a ‘national brand’ for more than nine years. We will now aggressively take our outstanding products and services to the national marketplace under one unified name — FMF Capital,” said King. Previously, the Company operated under the names Franklin Mortgage Funding and Franklin Direct. “FMF Capital’s IPO on the Toronto Stock Exchange is one of only five cross-border income participating securities IPOs ever completed,” said Bill Sider, a partner with FMF Capital’s lead law firm, Michigan-based Jaffe Raitt, Heuer & Weiss, P.C. “This was an extremely complex cross-border transaction that we led with our Canadian partner Goodmans LLP, and a host of other
participants, to completion in a little over six months.” “Ultimately investors were attracted to FMF Capital’s strong and predictable revenue and cash flow, a compelling strategy for future growth and a dynamic and committed management team with a proven track record of success,” said Tom Little, a director in the financial services group at Toronto-based BMO Nesbitt Burns. “We were delighted to lead this successful offering for FMF Capital, the first financial services company to go public through a cross-border IPS transaction.” “Income participating securities” and “IPS” are trademarks of BMO Nesbitt Burns Corporation Limited. For more information, please see FMF Capital Group’s prospectus dated March 16, 2005.
ABOUT FMF Capital Group Founded in 1996, Southfield, Michigan-based FMF Capital Group is one of the leading wholesale nonprime residential mortgage lenders in the United States. FMF Capital originates its nonprime mortgages though a network of more than 3,000 independent mortgage brokers in 38 states. The Company operates regional processing centers in Scottsdale, Arizona; Overland Park, Kansas; Southfield, Michigan; Nashville, Tennessee and Virginia Beach, Virginia. FMF Capital is traded on the Toronto Stock Exchange under FMF.UN. For more information, please visit http://www.fmfcapital.com
FMF Capital Group Safe Harbor This press release may contain forward-looking statements, including statements regarding the business and anticipated financial performance of FMF Capital Group. These forwardlooking statements reflect the Company’s views, at the time such statements were made, regarding expectations of future events and operating performance and FMF Capital Group assumes no obligation to update or revise them to reflect new events or circumstances. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not or the times at or by which such performance or results will be achieved. A number of factors could cause results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under “Risk Factors.� Although the forward looking statements contained herein are based upon what FMF Capital believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. SOURCE FMF Capital LLC