Credit Suisse Investment Banking Pitch Book
PRELIMINARY | SUBJECT TO FURTHER REVIEW & REVISION
Preliminary Osprey standalone projections comparison (cont'd)
Updated forecast (Sept. 2017) versus prior 2017 fiscal year plan (Feb. 2017)
Selected changes to Osprey standalone model per Osprey management include:
2 Lower earnings from delay in transition to asset-light credit asset manager and shift in market conditions
Dartmouth fund launch delayed one year; more challenging fundraising environment; offset slightly by inclusion of
newly acquired Fifth Street CLOs and reopening of 2014-1 and 2016-1 CLOs in 2018E
- Taking smaller pieces of deals; less syndication income (based on market dynamics) in non-interest income
Net interest income fluctuates based on average loan balances
- 2017E: $180mm lower forecasted average balance
- 2018E: $250mm higher forecasted average balance; reopening of 2014-1 and 2016-1 CLOS
2019E: Reset of Arch Street and 2015-2 CLOS to off-balance sheet, offset by resulting lower cost of funds
3 Financing cash flow assumptions
- Higher unsecuritized debt balances from resetting / calling of existing CLOs through forecast horizon(¹)
- Share repurchase amount reduced; additional cash used to pay down term debt
- Adjusted for FSIC warrant constraints
Accelerated repayment of high-yield senior unsecured notes starting in 2018E
Early repayment of GSO subordinated notes in 2H'19E
Book value per share and earnings per share
- Higher shares outstanding resulting from reduced share repurchase amounts
- Higher average repurchase price (improvement in market price)
- Slight increase in options exercised
Inclusion of mark-to-market adjustment on Arch Street CLO
Lower share repurchase amount increases book value, offsetting lower net income
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Source: Osprey management estimates as of February 2017 and September 2017.
Excluding high-yield senior unsecured notes and subordinated notes.
Confidential
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