-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, R4vhK/FbPu8cIj3sxdiDqBQgOG0xTquwFrwav57TaS1mCfoFM1DJInHHwkfscza4 aNnJWkqt15DU8bEIt6XrUQ== 0001021408-01-500374.txt : 20010430 0001021408-01-500374.hdr.sgml : 20010430 ACCESSION NUMBER: 0001021408-01-500374 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20010426 ITEM INFORMATION: FILED AS OF DATE: 20010427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FRIEDMAN BILLINGS RAMSEY GROUP INC CENTRAL INDEX KEY: 0001048750 STANDARD INDUSTRIAL CLASSIFICATION: SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211] IRS NUMBER: 541837743 STATE OF INCORPORATION: VA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-13731 FILM NUMBER: 1612296 BUSINESS ADDRESS: STREET 1: 1001 19TH STREET N CITY: ARLINGTON STATE: VA ZIP: 22209 BUSINESS PHONE: 7033129500 MAIL ADDRESS: STREET 1: 1001 NINETEENTH ST N CITY: ARLINGTON STATE: VA ZIP: 22209 8-K 1 d8k.txt FORM 8-K FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (date of earliest event reported): April 26, 2001 Friedman, Billings, Ramsey Group, Inc. (Exact name of Registrant as specified in its charter) Virginia 54-1837743 001-13731 (State or other (I.R.S. Employer incorporation or (Commission File jurisdiction of organization) Number) Identification No.) 1001 Nineteenth Street North Arlington, VA 22209 (Address of principal executive offices) (Zip code) (703) 312-9500 (Registrant's telephone number including area code) Item 5. Other Events 1. On April 26, 2001, Friedman, Billings, Ramsey Group, Inc. issued a press release announcing its earnings for the 1st quarter 2001. The entire text of that press release is being filed herewith and attached as Exhibit 99.1. including the Condensed Consolidated Statements of Operations. 2. On April 26, 2001, Friedman, Billings, Ramsey Group, Inc. held a conference call announcing its earnings for the 1st quarter 2001. The text of that conference call is being filed herewith and attached as Exhibit 99.2. 3. Friedman, Billings, Ramsey Group, Inc., attaches herewith, as Exhibit 99.3, Financial & Statistical Supplement - Operating Results(unaudited), financial schedule of its operating results for 2000 and the 1st quarter 2001. 4. Friedman, Billings, Ramsey Group, Inc. attaches herewith, as Exhibit 99.4, Friedman, Billings, Ramsey Group, Inc. Long-Term Investment Matrix. 99.1 Press Release dated April 26, 2001 99.2 Conference Call Transcript 99.3 Financial & Statistical Supplement - Operating Results(unaudited) 99.4 Long-Term Investment Matrix. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. By: /s/ Emanuel J. Friedman Chairman and Co-Chief Executive Officer EX-99.1 2 dex991.txt EXHIBIT 99.1 EXHIBIT 99.1 [FBR LOGO APPEARS HERE] For Immediate Release Media Contact: Michael W. Robinson (703)-312-1830 or mrobinson@fbr.com ----------------- Investor Contact: Kurt R. Harrington (703)-312-9647 or kharrington@fbr.com ------------------- Friedman, Billings, Ramsey Group Reports First Quarter 2001 Results ARLINGTON, Va., April 26, 2001 - Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) today reported a net loss of $6.1 million, or $(0.12) diluted per share for the quarter ended March 31, 2001, versus net income of $6.4 million, or $0.12 diluted per share for the same quarter last year. Revenues (excluding technology venture capital gains and losses) for the first quarter were $29.6 million compared with $25.0 million for the first quarter of 2000. Reported revenues were $22.5 million compared with $66.2 million for the first quarter of 2000. "The deterioration of values in the technology sector, specifically in some of the private company holdings of our venture funds, contributed $5 million of the loss in the quarter," said Chairman and Co-Chief Executive Officer Emanuel J. Friedman. "Importantly, we began to see renewed activity in our other three sectors - financial services, real estate and energy - in the first quarter. We are disappointed with the loss this quarter, however since inception our technology venture capital efforts have generated excellent returns for our shareholders. As of March 31, 2001, FBR's investment in our technology venture capital funds was $17.4 million." The company reported institutional brokerage revenue of $12.5 million, up from $11.7 million in the first quarter of 2000; base asset management fee revenue of $2.9 million, up from $2.2 million in the first quarter of 2000; and interest, dividends, and other revenue of $2.2 million, up from $2.0 million in the first quarter of 2000. "In this quarter we saw continued growth in our predictable revenue streams, including institutional brokerage, base asset management fees, and spread income," said Vice Chairman and Co-Chief Executive Officer Eric F. Billings. "These revenue streams were running at an annualized run rate of $70.4 million in the quarter, " he said. "We are also encouraged to see the return of capital to sectors such as financial institutions, real estate and energy," Mr. Billings continued. "In 1998 we were one of the last investment banks to execute transactions in the financial and REIT sectors before the market break that virtually closed the capital markets to new issues in these sectors. And we were the first to execute transactions again in the first quarter of 2001, with three lead-managed mortgage REIT transactions. Indeed, we are encouraged by the level of activity in our investment banking business and by the growth in our institutional brokerage and asset management businesses," he said. During the quarter, FBR announced the opening of new offices in Dallas and New York. At the end of the quarter, the company also announced the opening of an office in Cleveland and the completion of its previously-announced acquisition of Money Management Associates (MMA) and Rushmore Trust and Savings (now FBR National Bank & Trust). First quarter results reflect no revenues from these new initiatives. FBR had 49.4 million common shares outstanding, shareholders' equity of $211.0 million, and book value per share of $4.27 as of March 31, 2001. Total assets as of March 31, 2001, were $238.0 million, including cash and liquid assets of $84.5 million. ($17.5 million was subsequently used to acquire MMA and Rushmore). A live webcast of FBR's conference call will be available at 9 a.m. (Eastern Time) via: http://www.vcall.com/NASApp/VCall/EventPage?ID=73600. Replays of the webcast will be available afterward. - ------------------------------------ Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) is a financial holding company for investment banking, institutional brokerage, specialized asset management, and banking products and services. FBR provides capital and financial expertise throughout a company's lifecycle and affords investors access to a range of proprietary financial products and services. Headquartered in the Washington metropolitan area, FBR has offices in Arlington and Reston, Va., Bethesda, Md., Boston, Charlotte, Chicago, Cleveland, Dallas, Irvine, Ca., New York, Portland, Seattle, London, and Vienna. For more information, see www.fbr.com. Statements concerning future performance, developments, or events, expectations or plans and objectives for future operations or for growth and market forecasts, and any other guidance on present and future periods, constitute forward-looking statements that are subject to a number of factors risks and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances. These factors include but are not limited to competition among venture capital firms and the high degree of risk associated with venture capital investments, the effect of demand for public offerings and advisory services, activity in the secondary securities markets, available technologies, competition for business and personnel, and general economic, political and market conditions. Note to Editors: 1 page of financial information follows this page. FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share amounts) (Unaudited)
Three months ended March 31, 2001 % 2000 % ------- ----- ------- ----- REVENUES: Investment banking $ 9,898 44.1% $16,696 25.2% Institutional brokerage 12,537 55.8% 11,677 17.6% Asset management (2,222) -9.9% 35,877 54.2% Interest, dividends and other 2,240 10.0% 1,993 3.0% ------- ----- ------- ----- Total revenues 22,453 100.0% 66,243 100.0% ------- ----- ------- ----- EXPENSES: Compensation and benefits 16,251 72.4% 46,223 69.8% Business development and professional services 5,326 23.7% 4,617 7.0% Interest 81 0.4% 222 0.3% Other 6,934 30.9% 6,625 10.0% ------- ----- ------- ----- Total expenses 28,592 127.3% 57,687 87.1% ------- ----- ------- ----- Net (loss) income before income taxes (6,139) -27.3% 8,556 12.9% Provision for income taxes - 0.0% 2,139 3.2% ------- ----- ------- ----- Net (loss) income $(6,139) -27.3% $ 6,417 9.7% ======= ===== ======= ===== Basic (loss) earnings per share $ (0.12) $ 0.13 ======= ======= Diluted (loss) earnings per share $ (0.12) $ 0.12 ======= ======= Weighted average shares - basic 49,389 49,021 ======= ======= Weighted average shares - diluted 49,389 51,353 ======= =======
EX-99.2 3 dex992.txt EXHIBIT 99.2 EXHIBIT 99.2 First Quarter 2001 FBR Group Earnings Conference Call Script Thursday, April 26, 2001 [Speaker: Michael Robinson] Good morning. This is Michael Robinson, Vice President of Corporate Communications and Investor Relations at Friedman, Billings, Ramsey Group. Before beginning our call, I would like to remind everyone that statements concerning future performance, developments or events, concerning expectations for growth, filed backlog and market forecasts, and any other guidance on present and future periods, constitute forward-looking statements. These forward-looking statements are subject to a number of factors, risks, and uncertainties which might cause actual results or developments to differ materially from stated expectations or current circumstances. These factors include, but are not limited to, the effect of demand for public offerings, activity in the secondary securities markets, the high degree of risk associated with venture capital investment, competition among venture capital firms, competition for business and personnel, available technologies, and general economic, political, and market conditions. Additional information concerning factors that could cause actual results to differ materially is contained in FBR's Annual Report on Form 10K and quarterly reports on Form 10Q. I would now like to turn over the call to our Chairman and Co-Chief Executive Officer, Emanuel Friedman. [New speaker: Manny Friedman] Thank you and good morning. As I'm sure you've seen by now, Friedman, Billings, Ramsey Group this morning reported a net loss of $6.1 million, or $(0.12) diluted per share for the quarter ended March 31, 2001, versus net income of $6.4 million, or $0.12 diluted per share for the same quarter last year. Revenues (excluding technology venture capital gains and losses) for the first quarter were $29.6 million compared with $25.0 million for the first quarter of 2000. Reported revenues were $22.5 million compared with $66.2 million for the first quarter of 2000. Before I hand the call over to Eric Billings to provide a little more detail on the capital markets part of our business, and what we see in the coming months, I want to take a moment to talk about our asset management results. As you may recall, we record asset management revenues from three sources: base management fees, incentive income (or "carry"), and investment gains or losses on FBR Group's own invested dollars in the investment vehicles that we manage. Base asset management fees are up year-over-year, and sequentially quarter-over-quarter. Incentive income and investment returns were negative for the quarter, due to write-downs in technology venture capital, primarily private companies. During the quarter, public market valuations fell 26 percent (Nasdaq)* and write-downs in private holdings reflect the reality that both access to capital, and exits, are more remote in these circumstances. Outside of these technology sector write downs, we saw positive returns in our other long-term investments, notably in the financial and real estate sectors, and in our arbitrage fund. I also want to point out that of $118.8 million in long-term investments, more than 85 percent is in non-technology sectors, primarily financial services, real estate, and our arbitrage fund, and debt instruments. With that, I'll turn the call over to my colleague, Eric Billings. - -------------------- * ( Source: Nasdaq.com) [New speaker: Eric Billings] Thank you, Manny. In our capital markets business, we were encouraged during the quarter to see two key positive signs. First, we saw capital flows returning to sectors such as financial services, real estate, and energy, that historically have accounted for a significant part of our business. In 1998, we were one of the last investment banks to execute transactions in the financial and real estate sectors, including the IPOs of Capital Automotive, Resource Asset, and Anthracite before the capital markets virtually closed to those sectors for the better part of the last three years. Now we're the first back into the market last quarter, leading secondaries for Annaly, Anthracite and Resource Asset. Second, we continue to see returns on our focus on institutional brokerage, in particular from our enhanced coverage of larger capitalization names. Our institutional brokerage revenues were up year-over-year and sequentially quarter-over-quarter. While these are encouraging signs, the potential of our platform is clearly not yet reflected in our numbers. As I have said before, the annualized breakeven point for each of the two legs of our capital markets businesses - institutional brokerage and investment banking - is about $50 million each, so around $100 million combined. We are very encouraged looking forward. We are seeing building levels of activity across our sectors, especially in financial services, real estate and energy, and continued expansion in institutional brokerage and asset management. As many of you know, FBR has historically been a major lead-manager of equity underwritings for middle-market companies. This has been particularly the case in financial services, real estate and energy, the sectors to which we now see capital flowing once again. For the five years 1996-2000, we were a top 10 lead-manager of IPOs (excluding technology)* in the United States. Indeed, our strategic expansion plan details our continuing role as a major underwriter in our four core sectors of financial services, real estate, technology, and energy. A key component of this plan, of course, is the addition of resources specifically targeted at helping us get there. Since August 2000, when we initiated our current expansion efforts, we have hired 10 research analysts, 8 professionals in sales and trading, and 9 investment bankers at the vice president level or higher to help us in this regard. I will talk in a minute about the positive results of these additions. I want to mention a couple of other things about the results we announced this morning. As I have said before, our base case assumes a 10 percent annual return on our invested equity - the amount we have invested in our own asset management vehicles and other merchant banking investments. Remember, that for the five-year period 1996-2000, the simple average annual gross return for all of our managed vehicles (excluding the mutual funds) was approximately 51 percent. Now I'm going to take a moment to tell you about our strategic direction, and what we see for the future. In this regard, one of our most important focuses is the continued building of recurring revenue sources that we can largely count on through good markets and bad, while also building out the investment bank - a source of high-margin revenues. Specifically, we have a number of initiatives to increase our brokerage revenues, base asset management fees, and interest spread income, all of which we regard as recurring. We have invested in our research department and sales and trading to bolster institutional brokerage revenue. We have increased our research coverage of large capitalization names to enhance our penetration of the largest institutional accounts in the United States. We are beginning to see the results, with increased institutional brokerage revenues (excluding trading gains and losses) this quarter of $12.6 million, or 9 percent over the quarterly average last year of $11.6 million. Another recurring revenue source - base asset management fees - is up 32 percent over the first quarter a year ago, and that is before the acquisition of Rushmore/MMA. With the acquisition of Rushmore/MMA in the second quarter, we will immediately add another component to our recurring base asset management fees. Similarly, our acquisition of Rushmore Bank - now FBR National Bank & Trust - at the beginning of the second quarter, positions us to add to the third recurring revenue source - spread income - by generating income from our new banking business. We intend to be at a point where recurring revenues that are comparatively predictable generate an acceptable return on our total equity, while our larger investment banking transactions and asset management incentive income provides the potential for significantly higher returns, albeit on a less predictable basis. This quarter is illustrative of the fact that we are making progress, with institutional brokerage revenues, base asset management fees and interest and dividends together providing $17.6 million of revenues, or $70.4 million annualized compared to $15.8 million or 63.2 million annualized a year ago. With the growth that we anticipate in these revenue lines from the investments we have made during the last two quarters, and from further investment during the current quarter, we can begin to see annualized revenues from these three lines in excess of in excess of $100 million run rate later this year. Investment banking and incentive fees together have run at a $68 to $216 million annualized rate during the five years 1996 to 2000. In 1997, we achieved the high case of $216 million with significantly less personnel, diversification of products, and breadth of industry coverage than we have now. Lastly, I want to make it clear that the investments we have made, and continue to make, in building our business are being executed prudently, along the lines of the plans I just described. Specifically, with regard to hiring, while I have mentioned several new hires, remember that during the first three quarters of 2000, we first reduced headcount, and we have continued to open up slots at the same time as we are hiring. At March 31, 2000, we had 390 full-time employees; at March 31, 2001 we had 400, a net increase of 10. And, while we have opened several new offices, we have not incurred significant additional facilities expense in doing so at this stage. With that, I would like to open the call for questions. Joining Manny and me are our Chief Operating Officer Bob Smith and our Chief Financial Officer, Kurt Harrington. [At end of Q&A] If there are no further questions, that concludes our conference call for today. Thank you for joining us. Have a good day. - -------- * For IPO's between $100 million - $1 billion. (Source: CommScan EquiDesk) EX-99.3 4 dex993.txt EXHIBIT 99.3 Exhibit 99.3 [LOGO] FRIEDMAN, BILLINGS, RAMSEY GROUP, INC. FBR Financial & Statistical Supplement -Operating Results (unaudited) (Dollars in thousands, except per share data)
YTD 2001 Q-1 01 YTD 2000 Q-4 00 Q-3 00 Q-2 00 Q-1 00 --------- --------- --------- ------- --------- -------- --------- Revenues - -------- Investment banking: Underwriting $ 7,654 $ 7,654 $ 21,086 $ 4,447 $ 4,928 $ 1,205 $ 10,506 Corporate finance 2,244 2,244 31,404 9,209 7,264 8,741 6,190 Investment income - - 1,453 - 1,453 - - Institutional brokerage: Principal transactions 5,972 5,972 32,319 6,511 7,019 12,788 6,001 Agency commissions 6,565 6,565 21,084 5,792 4,989 4,627 5,676 Asset management: Base management fees 2,907 2,907 9,719 2,835 2,504 2,206 2,174 Incentive income (3,044) (3,044) 44,456 (7,747) 7,751 7,849 36,603 Net investment income (loss) (2,085) (2,085) 9,674 3,026 5,780 3,768 (2,900) Interest, dividends and other 2,240 2,240 9,695 2,336 3,014 2,352 1,993 --------- ------- --------- ------- -------- -------- ------- Total revenues 22,453 22,453 180,890 26,409 44,702 43,536 66,243 --------- ------- --------- ------- -------- -------- ------- Expenses - -------- Compensation and benefits 16,251 16,251 109,768 13,527 24,809 25,209 46,223 Business development & professional services 5,326 5,326 19,229 4,247 5,974 4,391 4,617 Clearing and brokerage fees 1,732 1,732 6,207 1,618 1,483 1,539 1,567 Occupancy & equipment 2,500 2,500 9,544 2,191 2,657 2,373 2,323 Communications 1,167 1,167 5,085 1,337 1,300 1,267 1,181 Interest expense 81 81 1,665 700 424 319 222 Other operating expenses 1,535 1,535 7,147 1,358 1,862 2,373 1,554 --------- ------- --------- ------- -------- -------- ------- Total expenses 28,592 28,592 158,645 24,978 38,509 37,471 57,687 --------- ------- --------- ------- -------- -------- ------- Net income (loss) before taxes (6,139) (6,139) 22,245 1,431 6,193 6,065 8,556 --------- ------- --------- ------- -------- -------- ------- Provision for income taxes - - 4,163 - 1,239 785 2,139 Net income (loss) $ (6,139) $ (6,139) $ 18,082 $ 1,431 $ 4,954 $ 5,280 $ 6,417 ========= ======= ========= ======= ======== ======== ======= Net income (loss) before taxes as a percentage of revenue -27.3% -27.3% 12.3% 5.4% 13.9% 13.9% 12.9% ROE (annualized) -11.5% -11.5% 9.0% 2.7% 9.5% 10.5% 13.3% Total shareholders' equity $ 211,001 $211,001 $ 214,556 $214,556 $211,796 $203,637 $198,063 Basic earnings (loss) per share $ (0.12) $ (0.12) $ 0.37 $ 0.03 $ 0.10 $ 0.11 $ 0.13 EPS (pro-forma) (1) $ - $ - $ - $ - $ - $ - $ - Diluted earnings (loss) per share $ (0.12) $ (0.12) $ 0.36 $ 0.03 $ 0.10 $ 0.11 $ 0.12 Ending shares outstanding (in thousands) 49,391 49,391 49,380 49,380 49,282 49,204 49,096 Book value per share $ 4.27 $ 4.27 $ 4.34 $ 4.34 $ 4.30 $ 4.14 $ 4.03 Assets under management (in millions) - ------------------------------------- Managed accounts $ 126.1 $ 126.1 $ 133.6 $ 133.6 $ 136.9 $ 131.9 $ 114.6 Hedge & offshore funds 164.7 164.7 149.7 149.7 135.1 114.3 98.8 Mutual funds 148.5 148.5 119.0 119.0 93.1 56.4 54.7 Private equity & venture capital 336.2 336.2 457.2 457.2 757.5 697.4 661.7 --------- ------- --------- ------- -------- -------- ------- Total $ 775.5 $ 775.5 $ 859.5 $ 859.5 $1,122.6 $1,000.0 $ 929.8 ========= ======= ========= ======= ======== ======== ======= Employee count 400 400 386 386 367 392 390 ========= ======= ========= ======= ======== ======== =======
EX-99.4 5 dex994.txt EXHIBIT 99.4 Exhibit 99.4 Friedman, Billings, Ramsey Group, Inc. Long-Term Investment Matrix (1) As of March 31, 2001 The following chart shows the allocation of Friedman, Billings, Ramsey Group, Inc.'s long-term investments, as stated on the March 31, 2001 balance sheet, by sector and by managed fund and also shows the allocation of long-term investments in publicly traded and private securities. Managed funds are categorized by the value of the majority of their investments. In addition, from time to time, FBR Group implements risk management strategies, the value of which may not be included in the balance sheet line for long-term investments.
Financial Public Private Total - --------- ----------- ---------- ---------- FBR Ashton, LP $ 16,596 $ - $ 16,596 14.3% FBR Private Equity Fund, LP 1,199 2,308 3,507 3.0% FBR Future Financial Fund, LP - 1,659 1,659 1.4% FBR Financial Services Partners 269 1,626 1,895 1.6% Direct investment 1,351 - 1,351 1.2% ---------- ---------- ---------- ----- 19,415 5,593 25,008 21.5% Real Estate - ----------- FBR Asset Investment Corporation 27,935 4,699 32,634 28.0% Direct investment 3,572 - 3,572 3.1% ---------- ---------- ---------- ----- 31,507 4,699 36,206 31.1% ---------- ---------- ---------- ----- Subtotal 50,922 10,292 61,214 52.6% ---------- ---------- ---------- ----- Technology - ---------- FBR Technology Venture Partners, LP (2) 768 5,045 5,813 5.0% FBR Technology Venture Partners II 598 3,214 3,812 3.3% FBR CoMotion Venture Capital I, LP (3) - 1,569 1,569 1.3% DDL and related direct investments - 5,791 5,791 5.0% Other direct investment 431 - 431 0.4% ---------- ---------- ---------- ----- 1,797 15,619 17,416 15.0% ---------- ---------- ---------- ----- Debt - ---- ---------- ---------- ---------- ------ Direct investment (4) - 17,837 17,837 15.3% ---------- ---------- ---------- ------ Other - ----- Braddock Partners, LP 4,920 - 4,920 4.2% FBR Arbitrage, LLC 10,769 - 10,769 9.3% FBR Weston, LP 1,569 - 1,569 1.3% Third-party partnerships - 1,483 1,483 1.3% Other 145 955 1,100 1.0% ---------- ---------- ---------- ----- 17,403 2,438 19,841 17.1% ---------- ---------- ---------- ----- ---------- ---------- ---------- ----- TOTALS $ 70,122 $ 46,186 $ 116,308 100.0% ========== ========== ========== =====
(1) Excludes trading securities inventory. (2) Amount is net of accrued Fund Manager Compensation expense ("FMC") of $576. Asset value before FMC as of March 31, 2001 was $6,389. (3) Amount is net of loans of $1,933 made by FBR Group to FBR CoMotion Venture Capital I, LP. (4) Represents private debt of two issuers with a face amount of $10,337 and $7,500 respectively. -----END PRIVACY-ENHANCED MESSAGE-----