Mbia Inc. · NYSE:MBI
Mbia — Debt Investor Presentation (November 2016)
12 slides from Mbia's debt investor presentation, Nov 28, 2016
Slide 1: Project Phantom: Zohar Collateral Overview
Project Phantom ZOHAR COLLATERAL OVERVIEW NOVEMBER 2016 Exhibit 99.2
Slide 2: Disclaimer
Disclaimer These materials, and any oral or video presentation that may supplement them (collectively, the “materials”) are being provided to your company by Houlihan Lokey in connection with an actual or potential engagement, are for discussion purposes only and may not be relied upon by any person
Slide 3: Executive Summary
Pro Forma for the MBIA UK transaction, MBIA Inc. and MBIA Insurance Corp. (“MBIA Corp.”) will together hold approximately $385mm (1) of the approximately $770mm Zohar II notes due January 20, 2017 that MBIA Corp. insured (“Zohar II Notes”) In connection with the approximately $385mm remaining Zohar
Slide 4: Transaction Diagram
Transaction Diagram Insured Senior Lenders MBIA Insurance Corp. “MBIA Corp.” Zohar II Notes Outstanding Assured Guaranty Corp. MBIA UK (Divested) MBIA Corp. has agreed to sell its MBIA UK Subsidiary and provide $23 million in cash to Assured Guaranty Corp. in exchange for $347mm outstanding principa
Slide 5: Balance Sheet Update – Q3 2016 Results
Balance Sheet Update – Q3 2016 Results Set forth below is MBIA Corp.’s balance sheet as of Q3 2016 Source: MBIA Inc. As of September 30, 2016 and December 31, 2015, the discount rate was 5.18%
Slide 6: Income Statement Update – Q3 2016 Results
Income Statement Update – Q3 2016 Results Set forth below is MBIA Corp.’s income statement as of Q3 2016 Source: MBIA Inc.
Slide 7: Reserve Statistics – 3Q 2016 Results
Reserve Statistics – 3Q 2016 Results Source: MBIA Inc. Excludes the non-admitted portion of MBIA UK's ending equity of $125 million and $75 million, as of September 30, 2016 and December 31, 2015, respectively As of September 30, 2016 and December 31, 2015, the discount rate was 5.18% The amounts co
Slide 8: Reserve Case and Hypothetical Downside Case
The Reserve Case is the scenario used for the purpose of setting MBIA Corp.’s loss reserves and is based on a probability weighted average of three scenarios of loan losses (base case, stress case, and an extended stress case) The Hypothetical Downside Case was prepared by MBIA Corp. and shows a mor
Slide 9: Zohar Collateral Portfolio Companies
180’s LLC American Doors, LLC Acme International Enterprises, Inc. American LaFrance LLC Amweld International Arizona Beverage Acquisition, LLC Automated Ductwork Manufacturing Company Best Textiles Acquisition, LLC Bomar Industries International Inc. CBA Group, LLC Croscill Acquisition, LLC Denali
Slide 10: Diligence Performed by Houlihan Lokey and Counsel
Houlihan Lokey and Kramer Levin Naftalis & Frankel LLP (“Counsel”) performed the following diligence, which was limited by various constraints highlighted on the next slide and was therefore not subject to a usual degree of diligence verification The diligence process included discussions with MBIA,
Slide 11: Diligence Limitations
Houlihan Lokey and Counsel were unable to conduct a full due diligence process due to the lack of complete and current available information, and lack of access to Patriarch Partners and management teams of each of the portfolio companies of Zohar I and II MBIA and its counsel and other advisors are
Slide 12: Reliability Concerns: SEC Allegations and Litigation Involving Patriarch
The SEC fraud allegations and various litigations surrounding Lynn Tilton and Patriarch Partners, as former collateral manager, raise concerns about the reliability of the information provided, much of which was provided to MBIA by Tilton or one of the Patriarch entities Patriarch is believed to be