|
Strategic
Considerations: Improve Balance Sheet 17 1) Reflects the following events as
disclosed in EQCs 2Q 2014 10-Q: 1) sale of entire stake of 22,000,000 common
shares of SIR for $704.8 mm, 2) prepayment of the $235.0 mm outstanding
balance on the revolving credit facility and 3) prepayment at par of $265.0
mm non-recourse mortgage loan on two buildings in Chicago, IL. As of Activity
since As Adjusted1 (in 000's) 6/30/2014 6/30/2014 1 6/30/2014 ASSETS Net Real
Estate 4,938,862 $ - $ 4,938,862 $ Cash and Cash Equivalents 428,373 204,880
633,253 Restricted Cash 22,829 - 22,829 Equity Investments (SIR) 531,862
(531,862) - Other 671,434 - 671,434 TOTAL ASSETS 6,593,360 $ (326,982) $ 6,266,378 $ LIABILITIES Revolving Credit Facility 235,000 $ (235,000) $ - $ Unsecured Debt, net 1,356,373 - 1,356,373 Term Loan 500,000 - 500,000
Mortgage Notes Payable, net 895,231 (265,000) 630,231 Total Debt 2,986,604
(500,000) 2,486,604 Other 235,868 - 235,868 Total Liabilities 3,222,472 $ (500,000) $ 2,722,472 $ SHAREHOLDERS' EQUITY 3,370,888 $ 173,018 $ 3,543,906
$ TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 6,593,360 $ (326,982) $ 6,266,378 $ Focus on improving credit rating and increasing flexibility
through de-levering . Sold EQCs entire stake in Select Income REIT (SIR) for
$704.8 mm . Prepaid at par $265 mm non-recourse mortgage loan . Paid down
$235 mm balance on revolving credit facility . Continue to evaluate paying
off secured mortgages and, in some instances, weighing the economics of
paying defeasance costs . Review existing unsecured bond tranches for
opportunities to pay down or refinance where it makes sense . Continue to
have proactive discussions with rating agencies
|