Walker & Dunlop, Inc · NYSE:WD
Walker & Dunlop — Merger or Acquisition (June 2012)
11 slides from Walker & Dunlop's merger presentation, Jun 8, 2012
Slide 1: Acquisition of CWCapital LLC
Acquisition of CWCapital LLC June 8, 2012
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the statements contained in this presentation constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar exp
Slide 3: Game Changing Transaction
Game Changing Transaction 2 Doubles Walker & Dunlop’s size Origination scale – combined originations of $7.7 billion in 2011 Servicing portfolio – $33.7 billion combined portfolio creates significant recurring revenue streams Economies of scale – accretive transaction with cost synergies over time E
Slide 4: Transaction Summary
Transaction Summary 3 Transaction Value: $220 million Consideration: $80 million in cash 11.6 million shares of Walker & Dunlop stock ($140 million) fixed within a 60% range in Walker & Dunlop stock (30% up or down); floating share count thereafter Stock consideration subject to lock-up period of 18
Slide 5: CWCapital LLC is a leading lender to multifamily, healthcare and commercial real estate
CWCapital LLC is a leading lender to the multifamily, healthcare and commercial real estate industries Founded in 1972 and based in Needham, Massachusetts Currently has approximately 180 employees One of the four operating subsidiaries of CW Financial Services LLC In-house origination capabilities i
Slide 6: Lender rankings
1 Wells Fargo 1 Wells Fargo 2 MetLife Real Estate Investments 2 Deutsche Bank Commercial Real Estate 3 PNC Real Estate 3 Walker & Dunlop 4 Deutsche Bank Commercial Real Estate 4 CWCapital 5 Prudential Mortgage Capital Company 5 Beech Street Capital, LLC 6 J.P. Morgan (CMBS) 6 PNC Real Estate 7 KeyBa
Slide 7: Enhanced National Reach
Enhanced National Reach 6 New York Bethesda (Both) Walker & Dunlop Offices (11) CW Capital Offices (14) Atlanta (Both) Chicago (Both) Dallas (Both) Fort Lauderdale Irvine (Both) Nashville New Orleans Walnut Creek Baltimore Needham Larkspur Seattle Vancouver San Francisco Westlake Village Richmond Pr
Slide 8: Creates the 8th Largest CRE Lender in the US
Creates the 8th Largest CRE Lender in the US(1) 7 (1) According to the Mortgage Bankers Association 2011 Rankings (2) Dollars in millions (3) Other includes CMBS, life insurance, commercial banks and interim loans Note: The terms “combined” and “combined entity” reflect the addition of Walker & Dunl
Slide 9: Creating the 11th Largest Servicer in the US
Creating the 11th Largest Servicer in the US(1) 8 2012 Projected Annual Servicing Revenue: $67.4 million Combined Servicing Portfolio Mix at March 31, 2012 $7.0B $13.2B $14.6B $16.8B $16.8B $16.9B $33.7B WD at March 31, 2012 CWCapital at March 31, 2012 (1) According to the Mortgage Bankers Associati
Slide 10: Helps Meet Strategic Goals
Helps Meet Strategic Goals 9 Grow core business and market share Diversify lending operations Create proprietary sources of capital Become top 5 lender for Fannie Mae, Freddie Mac and HUD Acquire talent of companies to complete national map Grow in key cities without cannibalizing our existing busin
Slide 11: Financially Compelling Accretive Transaction
Financially Compelling 10 Accretive Transaction (1) Accretive in 2012 Continued accretion in 2013 Conservative Assumptions Attractive savings by leveraging our existing platform and infrastructure Servicing operations will approximately double and provide increased scale Diligence / Integrations Ver