U S Loan Syndications Chris Droussiotis 2010 Table

U. S. Loan Syndications 美国银团贷款 Chris Droussiotis 2010

Table of Contents 1. Loan Syndication Background & History 银团贷款的背景及历史 2. Syndication Loan Market Overview Types of Loan Syndications Formats银团贷款市 场概况 银团贷款方式种类 3. Loan Syndication Process including a summary of Internal Rating Analysis包括内部 评级分析总结的银团贷款过程 4. Typical Leverage Loan Structure典型的杠杆贷款结构 5. Typical Leverage Loan Term Sheet / Credit Agreement典型的杠杠贷款期限表/信贷 协议 6. Example of Large Syndication大型银团案例 7. Lecturer’s Biography 讲师简历 2

Loan Syndication Background银团贷款背景 Ø A syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial or investment banks known as Arrangers. 银团贷款主要由 一组贷款人提供，由一个或几家商业或投资银行，被称为安排银行，来组织、安排和管理。 Ø Arrangers serve the investment-banking role of raising investor dollars for an issuer in need of capital. 安排银行扮演投资银行的角色来为需要资本的发行人筹措投资资金。 Ø The issuer pays the Arranger a fee for this service, and this fee increases with the complexity and risk factors of the loan. 发行人为此向安排银行支付费用。这笔费用根据贷款的复杂性和风险因素而增加。 ØIn the Mid-1980’s when the larger buyouts needed bank financing, the syndicated loan market became the dominant way for issuers to tap banks and other institutional capital providers for loans. 在 20世纪 80年代中期，当大型并购投资需要银行融资，银团贷款市场成为发行人寻找贷款银行和其他资本 提供机构的主要方式。 ØIn the late 90 s to early 2000’s hundreds of Collateral Loan Obligation funds (CLO’s) were created and joined the loan syndication process. These funds were referred to as non-bank institutions or institutional investors. These institutional investors played a key role in the exponential growth of the Mega LBO deals seen in 2005 -2007. 在 90年代晚期到 21世纪初，数以百计的贷款抵押债券基金（ CLO’s）被创造出来，加入到银团贷款的过程中。这些基金被称为非银行金融机构或者机构投资者。 2005 -2007年见证了这些机构投资者在指数级增长的超级杠杆收购交易中发挥的关键作用。 Ø By 2007, nearly 75% of the loans were provided by non-banks, versus less than 20% 10 years earlier. 到 2007年，将近 75%的贷款由非银行机构提供，而在 10年之前，只有不到 20%。 Ø The Fall of 2007 – the end of liquidity in the U. S Syndication market – Traditional Banks had to step up in the months and years to follow the liquidity crisis – The U. S Syndication market completely changed. 2007年秋季——美国银团贷款市场的流动性终结——传统银行需要几个月或者几年的提高来 适应流动性危机——美国银团市场完全改变。 3

Two Markets Served两种服务市场 Investment Grade Loan Market投资级别 贷款市场 • Rated BBB- and Higher (Corporate) BBB级及其以 上（公司） • Arrangers hold Higher Exposure ($200 million +) 安 排银行承担高风险（2亿美元以上） • The majority of the Syndicate are traditional banks 大部分辛迪加主要是传统银行 Leveraged Loan Market杠杆 贷款市场 • Rated BB+ and Lower (Corporate)BB+级以下的（公司） • Arrangers hold Lower Exposure thus the need to syndicate • 安排银行风险低 –因此需要进行辛迪 加 • The majority of the Syndicate are non-banks (Financial institutions) 大 部分辛迪加为非银行（金融机构） 2

Two Markets Served 两个服务市场 Investment Grade Loan Market投资 级别贷款市场 Leveraged Loan Market 杠杆 贷款市场 $715 Billion $229 Billion $692 Billion $245 Billion 5

Loan Syndication Market Overview (Continued)银团贷款市场概述（续） Exponential Demand Surge of Syndicated Leveraged Loans Vs Bonds银行杠杆贷 款需求指数级别的激增与债券比较 5

Loan Syndication Market Overview (Continued)银团贷款市场概述（续） The Exponential Surge in Supply of Syndicated Loans was driven by large Leveraged Buyouts starting in 2005 thru the summer of 2007 从2005年开始到 2007年夏季由大宗杠杆贷 款驱动的银团贷款的供给呈指数级别激增 $37. 9 $33. 0 Hi Yield $11. 25 $28. 4 Hi Yield $11. 3 $22. 3 Hi Yield $13. 22 Other (CMBS) $7. 25 $11. 3 Hi Yield $6. 03 $8. 0 Hi Yield $3. 0 Leveraged Loan $5. 0 28 Mar 05 Leveraged Loan $11. 3 20 Nov 05 Leveraged Loan $26. 65 Leveraged Loan $15. 185 Leveraged Loan $21. 7 Leveraged Loan $9. 0 24 Jul 06 2 Oct 06 26 Feb 07 30 Jun 07 Source: Loan. Connector Extremely high liquidity in the market gave banks confidence to underwrite larger and larger deals… 市场上极高的流动性给予银行承销越来越大交易的信心 6

Loan Syndication Market Overview (Continued)银团贷款市 场概述（续） Institutional Investors through June 2007 dominated the market 2007年 6 月机构投资者主导市场 Loan Syndication Participants: 银团贷款参与者 Source: Deutsche Bank Over time, institutional investors have replaced banks as lenders with over 75% of demand coming from institutional investors as of LTM 6/30/07 机构投资者取代银行成为借贷方，07年 6月30日LTM资料显示超过75%的需求来自机构投资者。 7

Loan Syndication Market Overview (Continued) 银团贷款市场概述（续） The Leverage Loan Syndication Supply and Demand Imbalance 银团杠杆贷款的供需不平衡 After (2 nd Half 2007(2)) As of 12/05/07 Before (LTM June 30, 2007(1)) ($ in Billions) $620 $162 $95 (15%) $45 ( 14. 5% $120 (19. 3%) ) Cross -over In Distre vestor / ss Bu Oppo yer rtunit y Fun / ds 9. 4% $95 (15%) ) Hedg $50 ( e Fun 14. 3% r $50 ( $10 ( (3) ) 3. 5% ) Bank s CLOs (2) Dema Liqui d Colla ation / teral Calls Y 14. 3% $310 (50%) $350 $50 ds / H ) Othe $620 $350 . 3%) (4) Capit Abso al Require rb Ex d to cess Supp ly (3) $33 ( B (46 Prima ry Issua nce (5) $300 nd Supp ly Investor Landscape has changed Sources: (1) Standard & Poor’s Leveraged Lending Review 2 Q 07 (2) Demand assumptions: Banks and Other at 35% consistent with LTM 6/30/07; CLO, Hedge Fund and New Capital amounts Wall Street estimates Supply assumptions: Primary Issuance based on current estimated forward calendar; Liquidation / Collateral Calls amounts Wall Street estimates (3) (4) Finance Companies, Insurance Companies, Prime Rate Funds (5) Grossed up for ordinary issuance Standard & Poors LCD News 12/5/07 8

The Secondary Loan Market took a plunge as a result of oversupply at the time of financial crisis. 由于金融危机时的过度供 应，二级贷款市场暴跌。 New Issue Loans with LIBOR Floor, higher Spread pricing and tighter structures post 2007 10

Types of Loan Syndication Formats 银团贷款的方式种类 Ø Underwritten deal包销协议 Ø Best-efforts syndication 尽力辛迪加贷款 Ø Club deal 俱乐部交易 9

Types of Loan Syndication Formats (Continued)银团贷款的方式种类（ 续） Underwritten deal 包销协议 Ø Arrangers guarantee the entire commitment, then syndicate the loan to reduce their exposure. 安排银行担保整个承诺， 然后联合贷款来减少风险 Ø If the arrangers cannot fully subscribe the loan, they are forced to absorb the difference. 如果安排银行不能完全卖掉 贷款，他们被迫吸收其中的差额。 Reasons for Arrangers to underwrite: 安排银行包销的原因： • Offering an underwritten loan can be a competitive tool to win mandates. 发行包销贷款成为赢得投标的竞 争性 具 • Underwritten loans usually require higher fees 包销贷款通常需要更高的费用 New Terms: 新条款 • “Flex Language” “柔性语言” • Memorandum of Understanding (MOU) “谅解备忘录（MOU）” • Balancing between holding and syndicating exposure 在持有和联合风险之间保持平衡 • For preferred customers, the banks tend to hold higher exposure justifying it by additional products offered going forward (an important variable in the banks’ profitability calculations (RAROC), though given the size of the facility, the banks’ are phased with the dilemma of successfully syndicating and holding their exposure. 对于优先客户，银行趋向于持有更高的 风险，理由是所提供的附加产品在向前发展（银行利润（RAROC）计算中的重要变量），尽管考虑到 具的规模，但是银 行还是面临成功联合和持有风险的困境。 10

Types of Loan Syndication Formats (Continued) 银团贷款的方式种类（续） Best-efforts syndication 尽力辛迪加贷款 Ø The Arranger commits to underwrite less than the entire amount of the loan. 安排银行承诺包销整个贷款 的一部分 Ø If the loan is undersubscribed, the deal may not close unless the terms/pricing/structure are changed. 如 果贷款仍不足，除非期限/价格/结构发生变化，否则交易不能关闭。 Ø Best-efforts syndications were used for risky borrowers or for complex transactions. 尽力辛迪加贷款主要 用于有风险的借款人或者复杂交易。 ØAs in the case of underwriting, for preferred customers, the banks tend to hold higher exposure justifying it by additional products offered going forward (an important variable in the banks’ profitability calculations (RAROC). 在包销的条件下，对优先客户，银行倾向持 有更高的风险，理由是所提供的附加产品在向前发展（是银行利润（RAROC）计算中的重要变 量）。 11

Types of Loan Syndication Formats (Continued)银团贷款的方式种类（续） Club deal俱乐部交易 Ø Pre-marketed to a group of issuer’s or equity sponsor’s relationship lenders. 预销售给一组发行人 或资产赞助的关系贷款人 Ø Typically a smaller loan (usually $25 million to $200 million but as high as $500 million) 通常是较小 的贷款（通常是 2500万美元到 2亿美元之间，但是有时也高达 5亿美元。） Ø The arranger is generally a first among equals, and each lender gets a full cut of the fees. 安排银 行通常首先获取收益，每个贷款人都会获得各自的费用。 ØFor preferred customers, the banks tend to hold higher exposure justifying it by additional products offered going forward (an important variable in the banks’ profitability calculations (RAROC). 对优先客户，银行倾向持有更高的风险，理由是所提供的附加产品在向前 发展（是银行利润（RAROC）计算中的重要变量）。 12

The Loan Syndication Process 银团贷款过程 Lead Arranger Bank牵头主办银行 Issuer /Company 发行人/公司 Administrative Agent行政代理 Bookrunner Bank承销银行 #1 Bookrunner Bank承销银行 #2 Bookrunner Bank 承销银行#3 Syndication Agent承销代理 Documentation Agent文件代理 Co-Mgr Co-Mgr Bank #1 Bank #2 Bank #3 Bank #4 Bank #5 Bank #6 Bank or Institution Bank or Institution Bank or Institution Bank or Institution First Tier Second Tier “Retail” Level 13

The Loan Syndication Process (Continued)银团贷款过程(续) Ø The issuer or Company solicits bids from Arrangers. 发行人或者公司向安排银行申请投标 Ø Arrangers will outline their syndication strategy and their view on the way the loan will price in market. 安排银行将阐述 他们的辛迪加策略以及他们对贷款市场定价方式的看法。 Ø Issuer gives the mandate to one or more Arrangers (Co-Arrangers) 发行人向一个或者多个安排银行投标。 Ø The arranger will prepare an information memo (IM) describing the terms of the transactions. 安排银行将准备一份信息 备忘录来记录交易条件 Ø The IM typically will include: 信息备忘录包括： Ø Executive Summary 内容提要 As part of the Ø Investment Considerations 投资考虑 syndication process Ø Summary of Terms and Conditions (Term Sheet)总条款和条件 we will discuss in Ø Transaction Overview 交易概述 detailed these two Ø Company 公司 items following this Ø Management and Equity Sponsor Overview管理和资产赞助商概述 page. Ø Industry Overview 行业概述 Ø Financial Model 财务模型 Ø Timing for commitments, closing, as well as fees on level of commitments 时间承诺、关闭 以及不同水平承诺的费用 Ø Bank meeting is scheduled at which potential lenders hear the management and the Investor group. 银行会议安排潜在 的贷款人来听证管理层和投资者团队。 ØA deadline is given for the banks to send their commitment levels subject to final documentation 银行有截止日期以将他们 的承诺级别提案提交成最终文件。 Ø Each Bank analyzes the deal’s credit and assess the pricing (RORA). Each Issuer is assigned an internal rating. 每 家银行都会分析交易信用并评估定价（RORA）。 每个发行者被指定一个内部评级 ØThe Arranger collects all commitments – different amounts from each Bank安排银行集合所有的承诺金额——每个银行数 量不同 Ø Allocations are given and Legal Documentation is sent for their final review. 分配配额，发出法律文件作最后审查。 Ø If the Deal is Oversubscribed, the allocation of each bank will most likely be reduced 如果是超额认购，每家银行 的配额很可能减少。 Ø If the Deal is Undersubscribed, depending on the FLEX language, the pricing could be Flexed up 如果认购不足， 取决于FLEX语言，定价可以更加灵活。 ØAfter Review of Legal Documentation by each lender and signatures are sent, the Deal closes and funds. 每 14 个借贷者审查了法律文件并签字后，交易结束，资金到位。

The Loan Syndication Process (Continued) 银团贷款过程(续) Typical Internal Analysis Process by each bank 每家银行典型的内部评级过程 Ø Internal Application sent to their respected investment/credit committees. This application includes the following: 内部申请提交到投资/信用委员会。申请包括： Ø Requested amount that is within the rating parameters for each bank 每家银行在评级参数 之内的要求金额 Ø Recommended amounts by Tranche (Revolving Credit / Term Loans)不同层次推荐金额（ 循环信贷/定期贷款） Ø Term and Conditions of the Loans (includes pricing, structure and covenants)期限和贷款 条件（包括定价、结构和担保契约） Ø Profitability (RORA and RAROC) 收益性（资本收益率和资本回报率） Ø Syndication strategy辛迪加策略 Ø Transaction discussion including Source and Uses and Capital Structure交易讨论包括来 源和用途以及资本结构 Ø Company discussion including historical performance and outlook 公司讨论包括历史回顾 和展望 Ø Corporate Structure 公司结构 Ø Management Biographies / Equity Sponsor Profile 管理层历史和股权赞助者概况 Ø Collateral Analysis 抵押品分析 Ø Industry Analysis 行业分析 Ø Financial Analysis (Projections’ Model) 财务分析 （预测模型） This process will be Ø Internal Rating Analysis 内部评级分析 discussed following this page Ø Internal Legal Review 内部法律审查 Ø KYC (know-your-customer) and Compliance Review 了解客户和合规审查 15

The Loan Syndication Process (Continued)银团贷款过程(续) Typical Internal Rating Analysis by each bank 每家银行内部评级分析 Ø Most banks’ internal ratings are in line with the Agencies’ external ratings, though the analysis is done independently. This analysis is based on two approaches: 尽管分析是独立的，很多银行的内 部评级和安排银行的外部评级一致，分析基于两种方法： The Typical Scale is 1 -10, 1 being Ø Quantitative Analysis 定量分析 Ø Qualitative Analysis定性分析 with very limited risk to default and 10 the issuer being in bankruptcy with no chance of recovery ØThe Quantitative Analysis for establishing the Internal rating which measures the probability of default is based on the following parameters (each component is weighted at a level of importance): 定量分析是为了建立内部评级 来衡量违约率，基于以下参数（每个赋予一定的权重） Ø Leverage Ratio - the relationship between debt and earnings (i. e. DEBT / EBITDA)杠杆比率-债 务与收入的关系 Ø Capitalization Ratio – the relationship between the bank debt and the rest of the capital (Capital Leases, Bonds, Equity) 资本比率-银行债务和剩余资本的关系（资本租赁、债券、股票） Ø Coverage Ratio - Issuer’s Cash Flow covering it’s debt obligations (interest and principal payments) 偿还能力系数-发行人覆盖其债务的现金流 （利息和本金支付） Ø Variance of Projections – based on the projections, the model typically assumes a certain haircut (10 -30%) to the management’s projections. 方差and it tests it’s ability to pay its debt obligations预期 方差——这个模型给出的值通常比管理层的预测低（10 -30%），它测试偿还债务的能力。 Ø The Quantitative approach adjusts up or down based on industry characteristics (Recession resistance, cyclical, or event driven). 定量方法根据行业特点上下调整（衰退、周期或者事件驱动） Ø The Qualitative Analysis is subjective based on each bank’s internal policy. The Analysis would include strength of management, support from the equity sponsor, recovery analysis (asset collateral) and outlook. 定性 分析从属于每家银行的内部政策。该分析包括管理实力，股权赞助者提供的帮助、偿还能力分析（资产抵押）以 及展望。 16

Typical Leverage Loan Structure (Rated by S&P as BB or lower)典型的 杠杆贷款结构（标准普尔评级为BB或者更低） Bank Debt Facilities (typically represented 30 -35% of Total Capital): 银行债务 具（通常占总资本的30 -35%） Ø Revolving Credit (Typically, Commercial Banks provide this facility) 循环贷款（通常情况下，商业 银行提供这种 具） § Commitment Amount 承诺额 § Typical maturities of 5 -6 years 一般 5 -6年到期 § Funded Versus Unfunded Amount 有抵押品与无抵押品金额 § Funded Pricing and Unfunded Pricing (Commitment Fee) 有抵押品定价和无抵押品定价（ 承诺费用） § Letters of Credit 信用证 Ø Term Loans (typically, Non-Bank institutions provide this facility)中长期贷款（非银行机构提供） § Funded Amount – sometimes structured as Delayed Draw Down 有抵押品金额-如有时候延 期提取的结构 § Typical Maturities of 6 -8 years 一般 6 -8年到期 Public Bonds / Notes (typically represented 20 -25% of Total Capital): 公共债券/票据（通常占总资本 的20 -25%） Ø Typical maturities of 9 -11 years 通常 9 -11年到期 Ø Unsecured Debt 无担保债券 Private Equity (typically represented 30 -45% of Total Capital): 私募股权：通常占总资本的30 -45% 17

Typical Leveraged Deal Term Sheet / Credit Agreement典型的杠杆交易 条款表/信贷协定 1. Parties to the Credit Agreement: 信贷协定的缔约方 Ø Borrower 借款人 Ø Holding Company 控股公司 Ø Guarantor / Parent and Subsidiaries’ Guarantee 担保人/母公司和子公司担保 Ø Agent Banks 代理银行 § Administrative Agent 行政代理 § Collateral Agent 抵押代理 § Syndication Agent 集团代理 § Documentation Agent 文件代理 Ø Law Firms representing the Borrower and Agent Banks 律师事务所代表借款人和代理银 行 2. Description of the Transaction / Purpose of the Loan (s) 交易/贷款用途说明 18

Typical Leveraged Deal Term Sheet / Credit Agreement (Continued)典型 的杠杆交易条款表/信贷协定 3. Money Terms: 现金条款 Ø Ø Amount / Tranches 金额/贷款部分 Ø Revolving Credit 循环信贷 Ø Term Loans 中长期贷款 Pricing 定价 Ø Interest Rate / Margin over LIBOR利率/超过 LIBOR的保证金 Ø Commitment Fees on unfunded portion 无资 助部分承诺费用 Need 100% Vote from the syndicate banks to amend these terms 需要联合 银行全票通过来修改这些条款 Maturities到期 Amortization Schedule (set principal payments) 摊 销附表（本金支付设定） 19

Typical Leveraged Deal Term Sheet / Credit Agreement (Continued) 典型的杠杆交易条款表/信贷协定 4. Non-Money Terms: 非现金条款 Ø Financial Covenants 财务契约 Ø Negative Covenants 否定契约 Need Majority Vote (typical 51%) from the syndicate banks to amend these terms 需要 超过51%的联合银行来修改这些条款 Ø Affirmative Covenants 肯定契约 20

Typical Leveraged Deal Term Sheet / Credit Agreement (Continued)典型 的杠杆交易条款表/信贷协定 New Terminology in 2006 and 2007: Typical Financial Covenants 典型的财务契约 Covenant Lite Structures (“Covy lite”) Maximum Leverage Ratio (Total Debt / EBITDA) Incurrence Tests Vs Maintenance Tests 最大杠杆比率 Maximum Senior Leverage Ratio (Bank Debt / EBITDA 最大高级杠杆比率 Minimum Coverage Ratio (EBITDA / Interest 最低偿还率 Minimum Fixed Charge Ratio (EBITDA – Capex – Taxes ) / Interest + Principal Payments) 最低 固定费率 Maximum Capital Expenditures 最大资本支出 Minimum Tangible Net Worth 最低有形资本净值 New Terminology in 2006 and 2007: “Green Shoe” Typical Negative Covenants 典型的否定契约 Limitations on Additional Debt 附加债务限制 Limitations on Asset Sales / Mergers & Acquisitions / Sale/leaseback transactions资产出售/并购/销售 /售后回租交易限制 Limitations of Dividends / Investments股息/投资限制 Limitation on Liens / Negative Pledges 留置权/违反承诺限制 Excess Cash Sweep 超额现金结算 Limitations of Change of Ownership 所有权变更限制 21

Typical Leveraged Deal Term Sheet / Credit Agreement (Continued)典型 的杠杆交易条款表/信贷协定 5. Other Terms & Conditions: 其他条款和条件 Ø Security / Liens / Guarantees 安全/留置权/担保 Ø Mandatory Prepayments 强制性预付款 Ø Optional Prepayments / Call Protection 可选预付款项/赎回保护 Ø Financial Reporting / Maintaining Corporate Existence (“Affirmative Covenants”) 财务 报告/维持企业生存（肯定契约） Ø Representation and Warranties 代表和保证 Ø Conditions Precedent at Closing 关闭的先决条件 Ø Events of Default 违约事件 Ø Assignments and Participations / Secondary Sales 转让和参股/二手交易 Ø Waivers and Amendments 放弃和修订 Ø Indemnification 赔偿金 Ø Cross Default 交叉违约 Ø Material Adverse Clause (MAC) 重大不利条款 22

Typical Leveraged Deal Term Sheet / Credit Agreement (Continued)典型 的杠杆交易条款表/信贷协定 6. Pricing, Fees and Expenses on Separate Documents: 定价、 费用和单独的文件费用 Ø Fee Letter 费用表 Ø Interest Rate (Applicable Margin and Leveraged Grids) 利率（ 适用保证金和杠杆网络） Ø Expenses 开支 23

Typical Leveraged Deal Term Sheet / Credit Agreement (Continued)典型 的杠杆交易条款表/信贷协定 Other Terminology to the Credit Agreement 信贷协议的其他条款 Ø LIBOR Floor 伦敦同业拆解利率下限 Ø Original Issuer Discount (OID) 原始发行折扣 Ø Margin Spread 保证金范围 A typical calculation of Loan Yields in the secondary market for loans: 贷款二级市场典型的贷款 收益计算 LIBOR or LIBOR Floor + Margin Spread + (100 -OID)/4 years = Loan Yield i. e. LIBOR Floor = 3. 00% Margin Spread = 400 basis points (or 4. 00%) OID = 94 Then the Loan Yield is calculated to: 贷款收益率计算： 3. 0% + 4. 0% + [(100 – 94)/100]/4 = 7. 0% + (6. 0% / 4) = 7. 0% + 1. 5% = 8. 5% Yield 24

Typical Leveraged Deal Term Sheet / Credit Agreement (Continued)典型 的杠杆交易条款表/信贷协定 Other Schedules Attached to the Credit Agreement 信贷协定的其他附表 Ø Intercreditor Agreement 关联债权人协定 Ø Purchase Agreement 购买契约 Ø Hedging Arrangement / Hedging Agreement 对冲安排/套期保值协议 25

Example of a Large Syndicated Loan 大型银团贷款案例 Harrah’s Entertainment 美国哈拉斯娱乐公司 26

Example of a Large Syndicated Loan大型银团贷款案例 Harrah’s Entertainment美国哈拉斯娱乐公司 TRANSACTION OVERVIEW 交易概述 On December 19, 2006, Harrah’s Entertainment Inc. (“Harrah’s” or the “Company”) announced that it had entered into an agreement to be acquired by affiliates of Apollo Management (“Apollo”) and TPG Capital (“TPG”) in a transaction valued at approximately $31. 2 billion (including estimated fees and expenses) 2006年 12月9日，美国哈拉斯公司宣称 其已经进入被阿波罗子公司和德克萨斯太平洋集团收购程序，交易价值 大约在 312亿美元（包括估计费用和开支） Harrah’s Entertainment, based in Las Vegas, Nevada, is the world’s largest and most geographically diversified gaming company, operating 50 casinos in six countries, with the #1 or #2 market share in almost every major gaming market in the U. S. 哈拉斯娱乐公司是全球最 大的和最多元化的博彩公司，在 6个国家经营 50多个赌场。在美国几乎 所有主要博彩市场占有#1和#2的市场份额 At the time of the acquisition, Harrah’s generated LTM 9/30/07 Net Revenues and Pro Forma Adjusted EBITDA of $10. 6 billion and $2. 9 billion, respectively. 在收购过程中，哈拉斯产生LTM 9/30/07 的净收入， 试算调整的收益在 106亿美元到 29亿美元之间 Harrah’s Operating Company (“HOC”) owns or manages 43 of the 50 Harrah’s Entertainment casinos and generated LTM 9/30/07 Net Revenues and Pro Forma Adjusted EBITDA of $8. 0 billion and $2. 0 billion, respectively哈拉斯运营公司拥有和管理着50家娱乐赌场中的43 家，产生LTM 9/30/07的净收入，收入在 80亿到税息前利润在 20亿。 27

Example of a Large Syndicated Loan大型银团贷款案例 Harrah’s Entertainment美国哈拉斯娱乐公司 TRANSACTION SOURCES & USES 交易来源和用途 28

Example of a Large Syndicated Loan大型银团贷款案例 Harrah’s Entertainment美国哈拉斯娱乐公司 STRUCTURE – TOO LEVERAGE? ? 结构 –过度杠杆？ Aggressive Structure? ? 激 进的结构？？ 29

Example of a Large Syndicated Loan大型银团贷款案例 Harrah’s Entertainment美国哈拉斯娱乐公司 CORPORATE STRUCTURE 公司结构 30

Example of a Large Syndicated Loan大型银团贷款案例 Harrah’s Entertainment美国哈拉斯娱乐公司 SUMMARY OF TERMS – SENIOR CREDIT FACILITY 条款概要- 优先信用 具 31

Example of a Large Syndicated Loan大型银团贷款案例 Harrah’s Entertainment美国哈拉斯娱乐公司 SYNDICATION GROUP 辛迪加集团 Lender 贷款人 Bank of America (Joint Lead Arranger) 美国银行 Deutsche Bank (Joint Lead Arranger) 德意志银行 Citibank (Joint Bookrunning Managers) 花旗银行 Credit Suisse (Joint Bookrunning Managers)瑞士信贷 JP Morgan (Joint Bookrunning Managers)JP摩根 Merrill Lynch (Joint Bookrunning Managers)美林证劵 Bear Stearns (Co-Managers)贝尔斯登 Goldman Sachs (Co-Managers)高盛 Morgan Stanley (Co-Managers)摩根斯坦利 32

Example of a Large Syndicated Loan大型银团贷款案例 Harrah’s Entertainment美国哈拉斯娱乐公司 SYNDICATION PROCESS – WRONG TIMING FOR AN UNDERWRITTEN DEAL? ? ? 辛 迪加过程-承销交易错误时刻？ Ø The general syndication of Harrah‘s was launched 1/15/2008 with a bank meeting in New York. Over 1, 000 bankers attended the general syndication meeting with commitments requested by 1/29/2008. 哈拉斯集团的银团贷款从2008年 1月15日在纽约举行的银行会议开始执行。 超过1000家银 行出席了2008年 1月29日之前要求承诺的辛迪加会议。 Ø Unfortunately, given the: i) global correction in the financial markets on the week of January 21, 2008, ii) dramatic widening of high yield credit spreads and iii) reduction in the 3 -month Libor Rate by at least 120 bps that followed, the secondary market loan prices pulled back materially and bank investors started to demand a much higher All-In Yield (about L+ 500) on primary market transactions, like Harrah‘s. 不幸的是：i）2008年 2月21日全球金融市场动荡；ii）高收益利差戏剧性的 扩大；iii）3个月的libor利率下降至少 120 bps，二级市场贷款价格大幅下降，银行投资者要求一级市场 上的交易，如哈拉斯，更高的全收益， Ø Investors were demanding All-In Yield of between L+ 450 - 500 to commit/purchase Harrah‘s Term Loan B. Since the offered TLB margin spread was L+300, investors were demanding a discount (OID) of between 92 -93 (compared to the original OID offer of 96. 5) from the Underwriters/Arrangers. 投资人要求在L+400和500之间的全收益来购买哈拉斯贷款协议B。因为提供 的TLB保证金范围是L+300，投资者要求安排银行和承销商的折扣为 92 -93之间。 Ø Following the failed syndication, Arrangers in order to reduce their exposure, were offering 33 Harrah‘s TLB with an OID in the low 90’s. 在辛迪加失败之后，安排银行为了减少开支，向哈拉斯提 供了低至 90多的折扣TLB。

Example of a Large Syndicated Loan大型银团贷款案例 Harrah’s Entertainment美国哈拉斯娱乐公司 SYNDICATION PROCESS – WRONG TIMING FOR AN UNDEWRITTEN DEAL? ? (continued) 辛迪加过程-承销交易错误时刻？（续） Ø At the time, given such low demand, it was reported that Credit Suisse started to quietly syndicate their exposure prior to the commitment deadline (1/29/2008), independent of the other Arrangers. 当时，在这样低的需求下，据称瑞士信贷在承诺期限之前已经单独悄悄开始风险联盟（ 2008年 1月29日）。 Ø As a consequence, each of the Arrangers started to syndicate their own exposure to their own investors offering as low as 90‘s OID to syndicate their exposure. 因此，每个安排银行开始向他们的 投资者进行风险联盟，提供低至 90的折扣。 Ø After that incident, there was a new agreement made between the Arrangers called The Memorandum of Understanding (MOU) where it prohibits one arranger to sell their exposure within an agreeable period (6 months after the commitments are due) without the consent of the other Arrangers. 这次事件之后，安排银行之间出现了新的协议即谅解备忘录，未经其他安排银行同意，禁 止在协议期内（承诺到期后6个月内）出售他们的风险。 34

BIOGRAPHY OF THE LECTURER 讲师简历 Chris Droussiotis, MBA, C. H. E. Chris Droussiotis has twenty two plus years of banking experience working in the investment banking divisions of major New York money center banks, such as Bank of America, CIBC Oppenheimer, Sumitomo Mitsui Banking Corp. , Mitsui Nevitt Merchant Bank, Mizuho Financial Group and Bank of Tokyo-Mitsubishi, specializing in the financing and structuring of merger & acquisition, leveraged buyout and recapitalization transactions. Chris Droussiotis 有22年多的银行从业经验，如美国银行、加拿大帝国商业银行、三井 住友银行、三井维特招商银行、瑞穗金融集团、东京三菱银行等，专门从事融资并购、 杠杆收购和注资交易. Chris is currently the Co-Head of the Leveraged and Sponsor Group at Sumitomo Mitsui Banking Corporation managing a $1. 4 billion investment portfolio of leveraged loan investments. 目前是三井住友银行杠杆收购和赞助商集团的联席主管。 Duties include portfolio analysis, valuation, financial projections, credit assessment, as well as interaction with issuers, broker-dealers, investment banks, Private Equity firms and bank management. 职责包括组合分析、估价、财务预测、信用评估、以及同发行人、经纪人、交易商、投资银行、私募股权公司以及银行管 理成层进行互动。 Chris is also an Adjunct Professor of certain finance courses for undergraduate and graduate programs at Baruch College and FDU including Investment Analysis, Quantitative Analysis in Business, Managerial Accounting, Business Statistics and Advanced New Venture Management. 同时也是博鲁克学员的兼职教授，主要教授投资分析、商业定量分析、管理会计、商业统计等等课程。 Chris has given various lectures on various subjects including Leveraged Buyouts, Credit Markets, Capital Markets for Baruch College, as well as companies such as Cendant Corporation, Wyndham Worldwide, Travelocity and the Industrial Bank of Japan. 在博鲁克学院举办各种包括杠杆收购、信贷市场、资本市场等的讲座。 Chris is also the president and founder of CSD&A, a financial consulting firm established in 1989 to assist companies with business plan development, quantitative analysis, financial modeling, enterprise valuation, Portfolio Analysis, 35 M&A, and debt and equity capital procurement. 也是成立于1989年的CSD&A金融机构的创始人和总裁。主要进行商业计划开发、 定量分析、金融建模、企业估值、投资组合分析、并购、债务和股权资本采购。