Form 425 for New Century Financial Corporation

Filed by New Century Financial Corporation

Pursuant to Rule 425 under the Securities Act of 1933

and deemed filed pursuant Rule 14a-12 of the Securities Exchange Act of 1934

 

Subject Company: New Century Financial Corporation

Commission File No: 000-22633

 

LOGO

 

This document is being filed pursuant to Rule 425 under the Securities Act of 1933 and is deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934.

 

On May 7, 2004, we issued the following press release:

 

 

News Release      

 

 

FOR ADDITIONAL INFORMATION CONTACT:

 

New Century Financial Corporation

18400 Von Karman, Suite 1000

Irvine, CA 92612

  

Carrie Marrelli, VP, Investor Relations

(949) 224-5745

Erin Freeman, VP, Corporate Communications

(949) 862-7624

 

 

New Century Announces April Loan Production of $3.3 Billion

 

Irvine, Calif., May 7, 2004, New Century Financial Corporation (Nasdaq: NCEN), one of the nation’s largest mortgage finance companies, announced today loan production volume for April 2004 of $3.3 billion, which reflects a 74 percent increase over the same period last year.

 

April Loan Production

 

The following table compares the loan production volume for April 2004 with the same period in 2003:

     2004
    2003
   
 

$’s in billions

    $ Vol.
    Funding
Days
    Average
Daily
$ Vol.
    $ Vol.
    Funding
Days
    Average
Daily
$ Vol.
    %
Change
in Vol.
     % Change
in Average
Daily Vol.
  

April

    $ 3.3    22    $ 0.150    $ 1.9    22    $ 0.086    74 %   74 %

Fiscal YTD

    $ 11.7    84    $ 0.139    $ 6.6    83    $ 0.080    77 %   74 %

 

“We are pleased with the production results reported for April,” said Robert K. Cole, chairman of the board and chief executive officer. “These solid results keep us on track to reach our recently increased 2004 production target of $36 billion.”

 

About New Century

 

New Century Financial Corporation is one of the nation’s largest mortgage finance companies, providing first and second mortgage products to borrowers nationwide through its operating subsidiaries. New Century is committed to serving the communities in which it operates with fair and responsible lending practices. To find out more about New Century, please visit www.ncen.com.

 

Safe Harbor Regarding Forward-Looking Statements

 

Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws and New Century intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, but are not limited to, the belief that New Century is on track to reach its $36 billion 2004 production target. New Century cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward-looking statements. Such factors include, but are not limited to, (i) the condition of the U.S. economy and financial system, (ii) the stability of residential property values, (iii) the potential effect of new state or federal laws or regulations, (iv) the effect of increasing competition in New Century’s sector, (v) the interest rate environment, (vi) New Century’s ability to maintain adequate financing facilities, (vii) the outcome of litigation or regulatory actions pending against New Century, and (viii) the risks identified in New Century’s Annual Report on Form 10-K, as amended, for the year ended December 31, 2003 and its other periodic filings with the Securities and Exchange Commission. New Century assumes no obligation to update the forward-looking statements contained in this press release.

 

 

Proxy Information

 

This press release may be deemed to be solicitation material in connection with our previously announced plan to convert to a real estate investment trust (REIT). In connection with the proposed REIT conversion, a preliminary proxy statement/prospectus that is part of the registration statement on Form S-4 of New Century REIT, Inc. was filed with the Securities and Exchange Commission on April 22, 2004. The preliminary proxy statement/prospectus is a proxy statement of New Century Financial and prospectus of New

Century REIT, Inc., a wholly owned subsidiary of New Century Financial. Investors are urged to read the preliminary proxy statement/prospectus and any other relevant documents filed with the Securities and Exchange Commission, including the definitive proxy statement/prospectus when available, because they will contain important information. You will be able to obtain the documents free of charge at the website maintained by the Securities and Exchange Commission at www.sec.gov. In addition, you may obtain documents filed by New Century Financial with the Securities and Exchange Commission free of charge by requesting them in writing from New Century Financial Corporation, 18400 Von Karman, Suite 1000, Irvine, California, 92612, Attention: Carrie Marrelli, or by telephone at (949) 224-5745.

 

Participants in Solicitation

 

New Century and its directors and executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from the stockholders of New Century in connection with the proposed REIT conversion. Information about the directors and executive officers of New Century and their ownership of New Century stock are set forth in the preliminary proxy statement/prospectus. Investors are also urged to review the information regarding the interests of such participants in the definitive proxy statement/prospectus when filed with the Securities and Exchange Commission.