Sotheby's Investor Briefing
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Key Considerations Regarding Funding Alternatives
Lend to build relationships and source future business
Speed and agility to respond to client needs
Bespoke nature of existing loan portfolio
Ability of financing sources to value underlying collateral
Current and future scale and composition of portfolio
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Alternative funding structures to be explored may include:
* Existing or upsized revolving credit facility
Additional long term / permanent debt
Loan portfolio securitization
Third-party funding arrangements
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SFS FUNDING ALTERNATIVES
Impact to Sotheby's leverage
Optimize funding to support growth and profitability
Credit rating implications
1 As of June 30, 2013.
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Loan Portfolio: $430mm¹
Three Year CAGR: -44%¹
2012A Revenue:
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Finance revenue: $17.7mm
Auction revenue: Contributed approximately
$40mm
• Loan to Value: 46%¹
Target Loan to Value: 50%
• Loan Losses: Historically insignificant
Spe
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Sotheby's
0.3% on total loans of $3.5bn from 1991 to
2012
19View entire presentation