Fieldstone Investment — Merger or Acquisition (February 2007)
14 slides from Fieldstone Investment's merger presentation, Feb 16, 2007
Slide 1: Schedule 14A Proxy Statement Information
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A (Rule 14a-101) INFORMATION REQUIRED IN PROXY STATEMENT SCHEDULE 14A INFORMATION Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 (Amendment No. ) Filed by the Registrant x Filed by a
Slide 2: Filing consists of FAQs and PowerPoint for employees regarding merger
(4) Date Filed: THIS FILING CONSISTS OF FREQUENTLY ASKED QUESTIONS AND A POWERPOINT PRESENTATION FOR EMPLOYEES OF FIELDSTONE REGARDING THE PROPOSED MERGER TRANSACTION.
Slide 3: Enhancing a Unique Business Model
* * * Enhancing a Unique Business Model John Draghi Michael Sonnenfeld C-BASS, Chief Operating Officer Fieldstone, Chief Executive Officer Noelle Savarese C-BASS, Senior Managing Director February 16, 2007
Slide 4: Who is C-BASS?
Who is C-BASS? C-BASS is unique in its structure and operations… » C-BASS stands for “Credit-Based Asset Servicing and C-BASS Corporate Structure Securitization” » Leading issuer, servicer, and investor specializing in credit-sensitive residential mortgage assets MGIC C-BASS Holding Radian » Started
Slide 5: Enhancing a Unique Business Model
Enhancing a Unique Business Model Strategic alignment of three complementary business models » Wholesale and retail » Servicing mortgage loans » 11 years of advanced subprime/Alt-A origination for the past 19 years credit analytics practice platform » State-of-the-art servicing » Leader in purchasin
Slide 6: Strategic Rationale: Value by combining core competencies
Strategic Rationale: Value by combining core competencies Quality sub-prime loan origination Credit Risk Investment Focus » Ample opportunity for product » 11-year successful track record in diversification and geographic mortgage portfolio management expansion » Loan-level risk-based pricing Credit
Slide 7: Financial Rationale: Strong capital generation
Financial Rationale: Strong capital generation C-BASS’s strong balance sheet and business performance will add tremendously to the organization C-BASS Financials (12/31/06) » Lower Cost of Funds, Cost to Produce Total Assets $8.8B » Greater ability to endure and exploit market Servicing Portfolio $5
Slide 8: Profit & Loss Rationale: Synergies in revenues, expenses and loan performance
Profit & Loss Rationale: Synergies in revenues, expenses and loan performance Volume & Revenues Expenses Loan Performance » Product Development: » Servicing: Litton has the » Servicing: Litton has the more robust data and credit scale and operational operational excellence to risk intelligence will
Slide 9: Transaction & Integration Timeline
Transaction & Integration Timeline » Board of Directors approval 2/15/07 » Public announcement 2/16/07 » Next Steps: » Shareholder Approval » Integration Planning & Execution » Timeline: Initial Steps Integration Planning Execution Key Milestones: Key Milestones: Key Milestones: » BOD Approval » Sha
Slide 10: Alignment of Fieldstone, C-BASS and Litton gives access to tools
* * * The alignment of Fieldstone, C-BASS and Litton gives the Fieldstone Team immediate access to the tools to build market share in a challenging market: » Best-in-class servicing and loss mitigation » Best-in-class analytics and predictive modeling 8
Slide 11: Safe Harbor Statement
Safe Harbor Statement This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that m
Slide 12: Fieldstone Investment Corporation FAQ's
Fieldstone Investment Corporation FAQ’s Q: Who / what is C-BASS? A: C-BASS, which stands for Credit-Based Asset Servicing and Securitization, was formed in 1996 and is a joint venture among MGIC, Radian Group Inc., and C-BASS Management. MGIC and Radian are two of the largest private mortgage insure
Slide 13: FAQ's continued
Q: Should I be worried? A: Your manager will tell you if your department or your job might be affected. Please keep in mind this deal is not about cutting jobs – it is all about Fieldstone’s success and growth of its mortgage banking business. Q: What is our severance policy? A: We provide two weeks
Slide 14: Safe Harbor Statement
Safe Harbor Statement This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that m
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