Download Monetizing Your Parking Assets

People. Ideas. Success.
Monetizing Your Parking Assets
December 10, 2012
Reliance
This presentation and any associated materials provided together with the presentation (together, the ”Materials”) have been prepared by
Guggenheim Securities, LLC (“Guggenheim Securities”) solely for the client or potential client to whom such Materials are directly addressed
and delivered (the “Recipient”) in connection with a specific actual or potential transaction mandate or engagement (the “Transaction”).
These Materials may only be used by the Recipient in its evaluation of the specific transaction or transactions referred to herein (the
“Transaction”) and may not be used, considered or relied upon for any other purpose or in connection with any other matter, without the prior
written approval of Guggenheim Securities.
The financial and other information contained in these Materials was obtained by Guggenheim Securities solely from the Recipient or from
public sources. Guggenheim Securities has relied upon and assumed the accuracy and completeness of all such information. To the extent
such information includes estimates and forecasts of future financial performance prepared by or reviewed with the management of the
Recipient or other potential Transaction party, Guggenheim Securities has assumed that such estimates and forecasts have been reasonably
prepared on bases reflecting the best currently available estimates and judgments of such management (or, with respect to estimates and
forecasts obtained from public sources, represent reasonable estimates). Guggenheim Securities has not assumed any responsibility or
liability for the independent verification of, and has not independently verified, any information, in these Materials including, without
limitation, the projections and estimates. No representation or warranty, express or implied, is made as to the accuracy or completeness of
such information and nothing contained herein is, or shall be relied upon as, a representation, whether as to the past, the present or the
future. The Materials are not intended to provide the sole basis for evaluating, and should not be considered a recommendation or
commitment by Guggenheim Securities with respect to any transaction or other matter. These Materials do not constitute an offer or
solicitation to sell or purchase any securities or commitment by Guggenheim Securities or any of its affiliates to provide or arrange any
financing, enter into any transaction or to purchase or sell or underwrite the sale of any security in connection therewith. This presentation
and any other Materials have each been prepared as of the date on the cover of this presentation and reflect information made available to
Guggenheim Securities as of or prior to such date. We assume no obligation to update or otherwise revise these Materials.
Guggenheim Securities and its affiliates engage in a wide range of financial services activities for their own accounts and the accounts of
customers, including asset and investment management, investment banking, corporate finance, mergers and acquisitions, restructuring,
merchant banking, fixed income and equity sales, trading and research, derivatives, foreign exchange and futures. In the ordinary course of
these activities, Guggenheim Securities and its affiliates may, directly or indirectly, hold long or short positions, trade and otherwise conduct
such activities in or with respect to debt or equity securities and/or bank debt of, and/or derivative products relating to the Recipient and/or
other potential parties to the Transaction.
2
Reliance
Consistent with applicable legal and regulatory guidelines, Guggenheim Securities has adopted certain policies and procedures to establish
and maintain the independence of its research departments and personnel. As a result, Guggenheim Securities’ research analysts may hold
views, make statements or investment recommendations and/or publish research reports with respect to the Recipient and/or other potential
parties to the Transaction that differ from the views of Guggenheim Securities’ Municipal Finance personnel.
Guggenheim Securities and its affiliates do not provide legal, compliance, tax or accounting advice. Any statements contained herein as to tax
matters were neither written nor intended by us to be used and cannot be used by any taxpayer for the purpose of avoiding tax penalties that
may be imposed on such taxpayer. If any person uses or refers to any such tax statement in promoting, marketing or recommending a
partnership or other entity, investment plan or arrangement to any taxpayer, then the statement expressed herein is being delivered to
support the promotion or marketing of the transaction or matter addressed and the recipient should seek advice based on its particular
circumstances from an independent tax advisor. These Materials are confidential and except as expressly provided below, these Materials
may not be reproduced, disseminated, quoted or referred to, in whole or in part, without our prior written consent. Notwithstanding anything
that may appear in these Materials to the contrary, the Recipient shall be permitted to disclose the tax treatment and tax structure of a
Transaction (including any materials, opinions or analyses relating to such tax treatment or tax structure, but without disclosure of identifying
information or, except to the extent relating to such tax structure or tax treatment, any nonpublic commercial or financial information) on and
after the earliest to occur of the date of (i) public announcement of discussions relating to a Transaction, (ii) public announcement of such
Transaction or (iii) execution of a definitive agreement (with or without conditions) to enter into such Transaction; provided, however, that if
such Transaction is not consummated for any reason, the provisions of this sentence shall cease to apply.
These Materials are for discussion purposes only. You should consult with your own legal, accounting, tax and financial advisors to
determine whether any transaction described herein is in your best interests and you should make an independent analysis and decision
regarding any such transaction based on such advice. These Materials are being provided in anticipation of a transaction in which
Guggenheim Securities would be acting as a principal in an arm’s-length transaction, and not as your advisor or fiduciary. By providing these
Materials to you and in respect of any discussions or procedures leading up to the consummation of such transaction, neither Guggenheim
Securities nor its affiliates are acting as your fiduciary or advisor and will not assume any fiduciary or advisory responsibility or liability in
your favor.
3
SECTION 1
Firm Overview
4
Firm Overview
Guggenheim Partners, LLC is a privately held global
financial services firm that provides asset management,
investment banking and capital markets services,
insurance, institutional finance and investment advisory
solutions to institutions, governments and agencies,
corporations, investment advisors, family offices and
individuals.
We combine innovative thinking and time-tested
investment management and advisory skills to offer our
clients a sophisticated array of products and services,
trusted counsel and exceptional value.
Our commitment is to create opportunities for our clients
to grow their wealth, access innovative investment
products and solutions and execute strategic
transactions.
5
Guggenheim Global Reach
Guggenheim Partners Overview
ASSETS
EMPLOYEES
OFFICES
More than $125 billion
under management
2,200 worldwide
We are headquartered in New York and
Chicago and serve our clients from more than
25 offices in 10 countries.
As of 4/8/2012
6
Our Core Values and Culture
Preservation
Integrity
Excellence
We are dedicated to the
preservation and growth
of our clients’ wealth,
our unique culture
and honoring the legacy
of our firm’s name.
We do the right thing,
for the right reasons.
We pride ourselves
on the quality of our
work and seek to
exceed expectations.
Innovation
Entrepreneurship
Talent
We strive to create
opportunities
with new approaches
and resources.
We believe in fostering
individual creativity and
a sense of ownership.
We believe that great
organizations are built
by employing and
partnering with the best
and the brightest people.
7
Primary Business Areas
Guggenheim Partners is comprised of six primary businesses:
Investments
Securities
Insurance
Fixed Income
Advisory
Life and Annuity
Equities
Financing
Capital
Solutions
Alternatives
Sales &Trading
Hedge Fund Managed
Account Solutions
Research
Institutional
Finance
Investment
Advisory
Funding
Solutions for
Financial
Institutions
Investment
Advisory Solutions
Global Trading
Multi-Strategy
Private Trading
Initiative
Consulting
8
Guggenheim Securities
Guggenheim Securities is the Investment Banking and Capital Markets business of Guggenheim. We offer a
full range of services that fall into the four broad categories:
1
2
ADVISORY
FINANCING
• We serve as trusted advisor
to our clients in connection
with a full range of advisory
services including mergers,
acquisitions, divestitures,
restructurings, spin/split-offs,
join ventures, leveraged
buyouts, capital raisings,
recapitalizations, exchange
offers, takeover defenses,
special committee
assignments, fairness
opinions and other special
situations. Our senior
professionals have advised
on some of the largest and
most complex transactions in
their industries
• We have broad distribution
capabilities for debt and
equity securities and
structured products. We are
able to effectively place and
syndicate securities through
our deep relationships with
institutional investors and
access to unique sources of
capital, including our ability to
act as a principal in select
situations.
3
4
SALES & TRADING
RESEARCH
• We provide a broad array of
sales and trading services to
institutional clients. Our
experienced professionals
deliver customized services
with unconflicted execution
• Our research team delivers
insights on macroeconomic
trends, industry specific
themes and individual
companies. Our analysts
assess companies’ entire
capital structures and provide
unique investment
perspectives pertaining to
debt and equity securities.
9
Guggenheim Securities
FINANCING
We have broad distribution capabilities for debt and equity securities and structured products. We are able to
effectively place and syndicate securities through our deep relationships with institutional investors and access to
unique sources of capital, including our ability to act as a principal in select situations.
Our services include, as relevant, assessing an institution’s optimal capital structure and sources of additional
capital, effectively positioning an issuer to investors, targeting investor pools, introducing investors, underwriting debt
and equity securities, distributing structured products and performing capital structure related management.
We offer a full range of financing products, which include, among others:
Fixed Income
Equities
Structured Products
Capital Structure
Management
Senior
IPOs/follow-on offerings
CDOs/CLOs
Repurchases
Subordinated
PIPES
CMOs
Tenders
Mezzanine
Private placements
RMBs
Exchanges
Convertibles
At-the-market offerings
CMBS
Hybrids
Direct stock purchase
programs
Consumer ABS
Amendments/consent
solicitations
ESPCs
Aircraft Debt Securities
Guggenheim Partners Overview
10
SECTION 2
Asset Monetization
11
Two Distinct Asset Management Models
Public Ownership
P3 Concession
Provide service
Maximize net revenues
Employment not a negative
Efficient operations
Cap Ex
Limited in scope
Upgrades and new technology applications
Capital
Low cost tax-exempt debt
Bank debt plus risk equity
To municipality (often)
To equity investors
Key Objective
Operations
Dividends
12
Public Asset Monetization
Public Ownership
Public Monetization
P3 Concession
Provide service
Service and net revenues
Maximize net revenues
Employment not a negative
Efficient operations
Efficient operations
Cap Ex
Limited in scope
Upgrades and new technology
applications
Upgrades and new technology
applications
Capital
Low cost tax-exempt debt
Low cost tax-exempt debt
Bank debt plus risk equity
To municipality (often)
To municipality
To equity investors
Key Objective
Operations
Dividends
13
Employ Professional Management
Municipal Authority
System Assets
Ownership
Asset Manager
Acts as Authority’s agent and fiduciary
Asset Operator
Operates individual assets
14
Maximizing Value for the Public Good
Public benefits from
modernization and private
sector expertise to optimize
revenues
Asset Revenues
Private management to
create efficiency
Operating Expenses
Senior Lien Debt Service
Junior Lien Debt Service
Public ownership
minimizes cost with taxexempt cost of capital and
avoids the need to pay
equity returns
Balance
Capital
Reserves
Public
Benefits
Constant Reinvestment in
Assets
Assets and All Surplus
Cash Revert to Owner
Without a need to pay equity returns,
all excess cash flow is reinvested into the
assets with the ultimate return of the
assets and surpluses to the owner
15
Summary
 Keep the Assets in public hands
 Deliver meaningful upfront proceeds to the Owner
 Capture and pledge all cash flow to repay debt and maintain the Assets
 Professionally manage the Assets full term; employ new technologies and other cost-effective cap ex
 Alignment of interests of Owner, professional managers and capital sources full term
 Rate of return on Assets goes to Owner rather than equity investor
16