Eddie Bauer — Debt Investor Presentation (March 2007)
23 slides from Eddie Bauer's debt investor presentation, Mar 14, 2007
Slide 1: Public Lender Presentation
M A R C H 1 4 , 2 0 0 7 P U B L I C L E N D E R P R E S E N T A T I O N S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L
Slide 2: Special Notice for Public-Side Information Materials
Special Notice for Public-Side Information Materials SPECIAL NOTICE FOR PUBLIC-SIDERS THE BORROWER HAS REPRESENTED TO THE ARRANGER THAT, IN ITS BEST JUDGMENT AFTER DUE CONSIDERATION (i) THE INFORMATION IN THIS DOCUMENT DOES NOT CONSTITUTE OR CONTAIN ANY MATERIAL NON-PUBLIC INFORMATION ("MNPI") WITH
Slide 3: Agenda
Agenda 2 P U B L I C L E N D E R P R E S E N T A T I O N
Slide 4: Situation overview
Transaction overview Financial update Business segment review Situation overview 3 1 3 2 9 3 14 4 20 P U B L I C L E N D E R P R E S E N T A T I O N
Slide 5: Situation overview
Situation overview Eddie Bauer, Inc. ("Eddie Bauer" or the "Company"), headquartered in Redmond, WA, is an international multi-channel retailer offering distinctive men's and women's apparel and accessories and field and gear products that reflect a modern interpretation of founder Eddie Bauer's uni
Slide 6: Situation overview, continued
Situation overview, continued Since the March 2006 amendment to its existing term loan facility, the Company had been actively engaged in a sale process In November 2006, Eddie Bauer announced it had entered into a definitive agreement to sell the Company for $9.25 (8.2x LTM 7/1/2006 EBITDA) per sha
Slide 7: Management overview
Management overview Eddie Bauer management team 6 S I T U A T I O N O V E R V I E W
Slide 8: Board of Directors
Board of Directors Board of Directors 7 S I T U A T I O N O V E R V I E W
Slide 9: Update on Eddie Bauer turnaround initiatives
Update on Eddie Bauer turnaround initiatives Get the product offering right Age appropriate Gender appropriate Lifestyle appropriate Price appropriate Speak to our customer and potential customer Loyalty program Brand marketing Circulation strategies Currently in Process 8 S I T U A T I O N O V E R
Slide 10: Business segment review
Transaction overview Financial update Business segment review Situation overview 9 1 3 2 9 3 14 4 20 P U B L I C L E N D E R P R E S E N T A T I O N
Slide 11: Business review
Business review Business review Eddie Bauer is a multi-channel specialty retailer that sells casual sportswear and accessories for the modern outdoor lifestyle Offers products through retail store, outlet store and direct channels Targets customers between the ages of 30 and 54 with average househol
Slide 12: Business review: Retail & Outlet
Business review -Retail & Outlet Business review: Retail & Outlet As of December 30, 2006, Eddie Bauer had 279 full-price stores & 115 outlets in the U.S. and Canada Retail stores are primarily located in regional malls, lifestyle centers while Outlet stores are located predominantly in outlet cente
Slide 13: Business review: Direct
Business review Business review: Direct Eddie Bauer's direct channel consists of catalog and website operations Extends / leverages sales across all channels and reinforces brand image 81 million catalog pages circulated in 2006 Website visits totaled 34 million for 2006 www.eddiebauer.com and www.e
Slide 14: Business review: Licensing and international
Business review Business review: Licensing and international Eddie Bauer selectively licenses its brand name and logo to enhance and extend the Eddie Bauer brand Typically enter into multi-year agreements with one licensee per product category to prevent price competition and brand saturation Major
Slide 15: Financial update
Transaction overview Financial update Business segment review Situation overview 14 1 3 2 9 3 14 4 20 P U B L I C L E N D E R P R E S E N T A T I O N
Slide 16: Quarterly same store sales (%)
Quarterly same store sales (%) Same store sales for Eddie Bauer have trended positively since introduction of Fall/Holiday 2006 merchandise Source: Eddie Bauer & Company filings Note: Combined comp % for Retail and Outlets Column 1 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9 Colum
Slide 17: Summary of key investment considerations
Significant collateral and enterprise value coverage (%) Summary of key investment considerations Key investment considerations Liquidity remains strong During peak R/C draw in 2006 Company still had $86.2mm in availability Significant de-leveraging through issuance of junior capital Sufficient coll
Slide 18: Leverage and enterprise value coverage commentary
Commentary Senior secured Leverage Enterprise value coverage sensitivity (%) Enterprise value coverage (%) Senior leverage and enterprise value coverage will improve with a junior capital execution Post junior capital and new loan, leverage will decrease to 3.0x With goal of further leverage reducti
Slide 19: Adjusted EBITDA schedule
($ millions) Adjusted EBITDA schedule Note: The above reconciliation to, and definition of, Adjusted EBITDA, may not be comparable to similarly titled measures reported by other companies. Adjusted EBITDA should be considered in addition to, not as a substitute for, operating income, net income, cas
Slide 20: Transaction overview
Transaction overview Financial update Business segment review Situation overview 20 1 3 2 9 3 14 4 20 P U B L I C L E N D E R P R E S E N T A T I O N
Slide 21: Recapitalization to reduce risk in capital structure
Eddie Bauer is undertaking a recapitalization to reduce risk in its capital structure and decrease interest expense Summary of pro forma terms versus existing terms of capital structure instruments 1 Based on LTM 12/30/2006 Adjusted EBITDA of $75.1 mm 2 As of March 13, 2007 based on 30.0 mm shares o
Slide 22: Summary terms and conditions
Summary terms and conditions Senior secured term loan 22 T R A N S A C T I O N O V E R V I E W
Slide 23: Public Q&A
Public Q&A 24 T R A N S A C T I O N O V E R V I E W
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