Pershing Square Activist Presentation Deck
III. Pershing's Proposal to McDonald's:
McOpCo IPO
Set forth below are the sources and uses of proceeds associated with a $14.7 bn issuance of secured
collateralized financing (net of cash on hand), or an incremental $9.7 of net debt, based on expected net
debt as of FY 2005E. We have assumed a 5% fixed rate for this collateralized financing. After this
transaction, Pro Forma McDonald's would be leveraged approximately 3.5x Total Debt/EBITDA or at a
25% Debt to Enterprise Value ratio. Proceeds from this issuance would be used to repay existing debt,
buyback shares and pay financing fees and expenses.
$ in millions
Sources
New CMBS Financing (net of cash)
Percentage Loan to Value
Total
Capitalization and Credit Profile of Pro Forma
McDonald's
Uses
Repay Existing Net Debt at PF McDonald's
Buyback Shares
Fees and Expenses
Total
$14,650
44%
$14,650
$4,965
9,535
150
$14,650
PF McDonald's Capital Structure
Total Net Debt at Stand-alone McDonalds
Less: Net Debt Allocated to McOpCo
Net Debt at PF McDonalds
Incremental Debt Issued through CMBS
Total Net Debt
Total Debt / EBITDA
Net Debt / EBITDA
Assumed Corporate Credit
Total Debt / Total Capitalization
35
FY2005E
$6,315
(1,350)
$4,965
9,685
$14,650
3.5x
3.4x
Investment Grade
24.5%View entire presentation