Nuveen Investments — Debt Investor Presentation (December 2010)
24 slides from Nuveen Investments's debt investor presentation, Dec 13, 2010
Slide 1: December 13, 2010 Presentation to Lenders
December 13, 2010 Presentation to Lenders
Slide 2: Agenda
Agenda Business Update Transaction Overview 2
Slide 3: Nuveen: Strategically well positioned
Nuveen: Strategically well positioned Highly diversified business Scaled multi-boutique model Specialized brands Strong investment performance Culture of product innovation, driving strong organic growth Track record of successful acquisitions Transformative FAF acquisition scheduled to close end of
Slide 4: A Highly Diversified Business
MF Institutional CEF RMA East 16 30 30 24 A Highly Diversified Business AUM* by Product AUM* by Asset Class AUM* by Affiliate Retail Managed Accounts 24% Closed End Funds 30% Mutual Funds 16% Institutional 30% Equities Taxable Fixed Income Municipals East 45 9 46 Equities 45% Municipal Bonds 46% Tax
Slide 5: Scaled Multi-Boutique Model
Scaled Multi-Boutique Model: Specialized investment teams benefiting from shared Nuveen platform Specialized, Separately Branded Affiliates Retail Sales and Service Product Management and Marketing Legal, Compliance and Risk Management Operations and Information Technology Administration Scaled, Sha
Slide 6: Strong Investment Performance
Strong Investment Performance Note: All figures are dollar weighted and represent preliminary data as of September, 2010 1 Yr. 3 Yr. < Benchmark 0.423 0.26 > Benchmark 0.577 0.74 Managed Accounts Equities Fixed Income Bottom 2 Lipper Quartiles 0.048 0.06 Top 2 Lipper Quartiles 0.952 0.94 Mutual Fund
Slide 7: Culture of product innovation, driving strong organic growth
Culture of product innovation, driving strong organic growth Culture of product innovation, driving strong organic growth 7
Slide 8: Track Record of Successful Acquisitions
2010* AUM 2001 Alternatives, Credit Strategies, and Risk-Managed Equity $8.4B 2002 Value Equities 20.9 2005 Growth Equities 3.3 2006 Global Equities 32.1 2007 Enhanced Equity Strategies 1.4 2008 Large Cap Growth Equities 14.3 2010 FAF ** Fixed Income, Real Assets and Equity Strategies 26.9 * As of O
Slide 9: Significant Strategic Benefits of FAF/Nuveen Combination
Significant Strategic Benefits of FAF/Nuveen Combination... Product Line Mix (% AUM) Q4, 2006 Q3, 2010 Institutional 0.2 30 Mutual Funds 0.11 23 CEFs 0.33 28 Retail Managed Accts. 0.36 21 Retail MAs CEFs Mutual Funds Institutional 20% 11% 33% 36% 30% 23% 26% 21% 100% 100% Nuveen Investments Nuveen I
Slide 10: Combined with meaningful financial benefits
....Combined with meaningful financial benefits Creates opportunity to accelerate growth Expanded and complementary distribution capabilities Broadened product offering Adds $40 million of run-rate EBITDA (including synergies) Synergies anticipated to come largely from combining distribution and bac
Slide 11: Leadership Positions in Closed-end Funds & Retail Managed Accounts
Leadership Positions in Closed-end Funds & Retail Managed Accounts... Significant untapped potential in Institutional and Mutual Funds Closed-end Funds $50B AUM* Retail Managed Accounts $41B AUM* Mutual Funds $26B AUM* Institutional $50B AUM* 102 Muni Funds 14 Taxable Funds 9 Equity-based Funds 1 Co
Slide 12: Strong Year-to-date AUM Growth
Strong Year-to-date AUM Growth 2009 Market Net Flows October 2010 AUM 144.8 144.8 154.9 167.1 10.1 12.2 0 $144.8 $10.1 $12.2 $167.1 AUM ($Bn) Institutional $7.4 Mutual Funds 3.5 CEF's 1.4 RMA (1.0) 12 October 2010
Slide 13: Strong 2010 Financial Results
Strong 2010 Financial Results 2008 2009 LTM Q3 2010 East 424 383 425 EBITDA ($MM) Net Sr. Secured Leverage* 13 2008 2009 LTM Q3 2010 East 756 666 753 Revenues ($MM) Margin: 56% 58% 56% * Per Credit Agreement definition
Slide 14: Producing Consistent Long-Term Asset Growth
Producing Consistent Long-Term Asset Growth Assets Under Management Mutual funds Closed-end Funds Retail accounts Institutional accounts Total 1986 3.83 - - 0 3.83 1987 3.54 1.79 - 0 5.33 1988 3.78 3.07 - 0 6.85 1989 4.18 5.14 - 0 9.32 1990 4.8 8.44 - 0 13.24 1991 5.71 16.29 - 0 22 1992 6.4 20.85 0.
Slide 15: Overall Business is Strong and Growing Again
Overall Business is Strong and Growing Again Significant asset growth due to market appreciation and positive net flows Favorable flow trends in fixed income, growth & international equities Strong mutual fund and institutional momentum A re-energized closed-end fund franchise Stability in retail ma
Slide 16: Agenda
Agenda Business Update Transaction Overview 16
Slide 17: Transaction Summary
Transaction Summary Nuveen is seeking an amendment and extension of its First Lien Credit Facilities to opportunistically reduce the size of its 2013 and 2014 debt maturities The amendment and extension addresses the following: $1.0 billion extension of the existing $2.1 billion First Lien Term Loan
Slide 18: Sources and Uses and Pro Forma Capitalization
(sinmiions) Sourcesof nds ses of nds ‘tenses RO 3190 Pay coon noncent RC ‘200 Exteced TL el. termed RC) 1.060 Pay down anest TE 1.000 cash tom blace sheet 0 Estimated es and expenses 10 Tou sources 0 Foal uss ae summsape XLT 30°F 90110 A. Pe bank ETOH wi FAR ‘asm 286 610) 7 Nonent rer due 2013 50 52
Slide 19: Transaction Materially Enhances Maturity Profile
Transaction Materially Enhances Maturity Profile 19 Current maturity profile (Weighted average maturity of 4.2 years) Pro forma maturity profile (Weighted average maturity of 5.0 years)
Slide 20: Amend & Extend Summary of Indicative Terms
Amend & Extend Summary of Indicative Terms 20 Borrower: Nuveen Investments, Inc. Description: Amend credit agreement to allow for an extension of $1,000 million in First Lien Term Loan and full $250 million Revolving Credit Facility Extension offer made to all First Lien lenders on a pro rata basis
Slide 21: Amend & Extend Summary of Indicative Terms (continued)
Amend & Extend Summary of Indicative Terms (continued) 21 Future refinancings: Ability for credit facility refinancings at par or applicable premium with first / second lien notes / loans, unsecured notes / loans, and/or new tranches of term loans or revolver under Credit Agreement Price protection:
Slide 22: Transaction Timeline
Transaction Timeline 22 12/13 Lender conference call 12/17 Commitments due from lenders 1/5 Estimated transaction closing
Slide 23: Transaction Rationale
Transaction Rationale Nuveen continues to experience strong operating momentum with positive net flows and market appreciation While the Company currently has no pending debt maturities before 2013, the proposed amendment and extension transaction allows us to further extend our maturity profile at
Slide 24: CORK
CORK NUVEEN Investments
Nuveen Investments — Debt Investor Presentation (December 2010) on 6ix