Bank of America Investment Banking Pitch Book
Introduction
Transaction Rationale
3
Benefits
Considerations
?
A take private of SIRE could be the best alternative for all stakeholders
SCR
Free cash flow at SIRE must no longer be
distributed and instead can be reinvested in
the operating entity
Reduced public company costs (board, filing,
audit, investor relations, etc.)
Simplified organizational structure
Greater flexibility to control and execute
strategy
Reduced management burden
Lower cost of capital
May not have benefit of MLP structure if MLP
market improves dramatically in the future (not
likely)
?
?
SIRE
Unitholders may receive a premium; whereas
sales in the open market will likely create
downward pressure
Efficient monetization of their interest without
being exposed to downside and suffering from
poor trading liquidity
Potential tax burden to certain unitholders
Will not enjoy possible future upside in the
business
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