Morgan Stanley Investment Banking Pitch Book
Q1 2016
.
Project Roosevelt
Retire $28.2MM of mortgage debt on
Hudson and Delano to meet 7.5% debt
yield requirement
Q2-Q4 2016
• Q2 2016 - No longer manage Shore Club
starting Q2 2016 and receive $2.9MM
termination fees
Key Assumptions
• Q2 2016 - No longer manage Mondrian
South Beach and received $1.0MM
termination fee. Only receive licensing fees
going forward
• Q3 2016 - No longer manage Morgans
starting Q3 2016 and receive $3.5MM
termination fees
.
Q4 2016-No longer manage Royalton
starting Q4 2016 and receive $3.5MM
termination fees
Q4 2016
• The current preferred dividend rate of 10%
increases to 20% in October 2016
Q1 2017
Retire $28.5MM of mortgage debt on
Hudson and Delano to meet 7.75% debt
yield requirement
Debt Yield Maintenance Covenant Test
Year-End
2016
SMM
Delano NOI
Hudson NOI
Bill Back)
NOI for Test
Required Yield
Required Balance
Beginning Debt Balance
Repayment Required
Ending Debt Balance
2017
15.6
15.8
12.9
14.7
2.0
2.0
30.5
32.5
7.75% 8.00%
393.3 406.5
421.8 393.3
ΝΑ
28.5
393.3
Morgan Stanley
393.3
MONROE SELECTED INFORMATION
Financial Estimates and Key Assumptions (Cont'd)
Monroe - Cash Flows Analysis
Net cash provided by operating activities (A)
Capex
Dispositions
A in Restricted Cash
Net cash provided by investing activities (B)
Proceeds from / (Payments of) LT Debt, Revolver, and Lease Notes
Debt Yield Payments
Debt Extension Fees (¹)
Net cash used in financing (C)
Net change in cash and cash equivalents (A+B+C)
Cash and cash equivalents, Beginning
Cash and cash equivalents, Ending
Source Monroe Management Projections
1Q16
(1.1)
(1.5)
(1.0)
0.6
(1.8)
(0.2)
(28.2)
(1.4)
(29.8)
(32.7)
45.9
13.2
2016
2016
2.9
(1.6)
(1.6)
I
1.1
3016
13.2
3.6
14.3
(1.6)
(1.6)
(0.3) (0.3) (0.3)
I
1.7
4016
14.3
8.1
(0.3) (0.3) (0.3)
16.0
1
(1.8)
(1.7) (1.5) (1.7)
I
1017
6.1
(1.7) (1.5) (1.7)
(0.3)
(28.5)
1
16.0
Strictly Confidential
(1.1)
(29.8)
2017
(33.1)
2017
4.5
(0.3)
3017
2.5
1.7
(1.6)
(0.3) (0.3)
(1.6)
1
(0.3)
(0.2)
4017
Note
1. Extension fees associated with the Hudson and Delano mortgage, 0.25% of outstanding balance
2. Per guidance from Monroe Interim CEO on 3/13/2016, reflects bill back expenses from corporate that Monroe is allowed to add back to NOI for debt yield maintenance test calculation
7.3
(1.8)
(1.8)
(0.3)
I
(0.3)
22.1 (10.9) (8.4)
22.1 (10.9) (8.4) (8.6) (3.5)
5.2
(8.6)
8View entire presentation