J.P.Morgan Investment Banking Pitch Book
TRANSACTION OVERVIEW
Transaction overview
Transaction type
Offer price per share
Implied enterprise value of $3,840
Acquirer total equity contribution of
approximately $1,500mm
New debt financing of approximately $2,480mm
100% cash acquisition; management-led buyout (MBO)
JPMorgan
$81.00 per share
15.1% premium to share price of $70.36¹
18.7% premium to 30-day average share price of $68.25¹
■ 20.3% premium to 60-day average share price of $67.35¹
17.9X EV/2006E EBITDA (based on upside case)
Contributor
Istithmar
Whitehall
Colony
Sol Kerzner
Butch Kerzner
The Related Companies
Providence
■ Approximately 65% of total transaction value
Max leverage of 76% total debt/EBITDA in 2007
(EBITDA-capex)/interest coverage less than 1x until 2008
1 Share price data as of 3/17/06; last trading day before public announcement
Source
New/Rollover
New
New
Rollover
Rollover
New
New
PROJECT PLATO
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