& Case Studies

September 2010

$150 million

Private Equity Placement
Exclusive financial advisor to TRI Pointe Homes on its $150 million private equity placement

On September 24, 2010, TRI Pointe Homes, a California homebuilder founded in April 2009, agreed to issue $150 million in a private placement of common equity, one of the largest equity investments in the homebuilding industry. TRI Pointe Homes has used the capital to fund growth in its operations in Southern and Northern California, aiming to become one of the largest regional builders over the next five years. Moelis & Company acted as exclusive financial advisor to TRI Pointe Homes.

July 2010

$2.7 billion

Chapter 11 Reorganization
Financial advisor to Aleris International on its $2.7 billion Chapter 11 Reorganization

On June 1, 2010, Aleris International Inc. (“Aleris”), a global leader in the production and sale of aluminum rolled and extruded products, recycled aluminum and specifications alloy manufacturing, emerged from Chapter 11. Aleris and its wholly-owned U.S. subsidiary co-debtors filed petitions for voluntary reorganization under Chapter 11 on February 12, 2009, as a result of financial constraints related to the deteriorating global economic situation, declining industrial demand and a swift drop in aluminum prices. Moelis & Company guided Aleris through a highly complex bankruptcy process that involved filing a voluntary petition for relief under Chapter 11 in the U.S. bankruptcy court for its German holding company subsidiary. Aleris’ innovative plan of reorganization received substantial support from its U.S. and European creditor groups and was confirmed in May 2010. Moelis & Company acted as exclusive financial advisor to Aleris and helped the company raise over $2.2 billion of capital over the course of the bankruptcy process.

July 2010

$1.3 billion

Equity Capital Raise and 144A Private Placement
Financial Advisor to Air Lease Corporation on its $1.3 billion equity capital raise

On July 13, 2010, Air Lease Corporation (“ALC”), a new aircraft leasing company launched by aviation industry pioneer Steven F. Udvar-Hazy and longtime aviation executive John L. Plueger, closed its approximately $1.3 billion equity capital raise, including an approximately $1 billion Regulation 144A private placement. ALC also secured approximately $2 billion of committed debt financing including a $1.5 billion warehouse credit facility, bringing total initial capital availability at closing to approximately $3.3 billion in less than six months after opening in Los Angeles. These transactions represented one of the largest Regulation 144A equity private placements ever completed as well as the largest ever first-time warehouse credit facility of its type. Moelis & Company acted as financial advisor to ALC.

April 2010

$24 billion

Chapter 11 Reorganization
Financial advisor to the Ad Hoc Group of First Lien Lenders of LyondellBasell on its $24.0 billion Chapter 11 Reorganization

On April 30, 2010, LyondellBasell Industries N.V. (“LyondellBasell,” NYSE: LYB), the world’s third largest independent chemical company based on revenues, successfully emerged from Chapter 11 bankruptcy. The company voluntarily filed for Chapter 11 bankruptcy, resulting from a sudden loss of liquidity caused by the rapidly deteriorating economic environment, in January 2009. Moelis & Company served as financial advisor to the Ad Hoc Group of First Lien Lenders and participated in all aspects of the restructuring process, including leading business due diligence, analyzing alternative plan structures, structuring the rights offering, evaluating exit financing structures, negotiating settlements with other creditor constituencies and assisting in the development and negotiation of the plan of reorganization. Additionally, Moelis & Company was integral in negotiating and structuring LyondellBasell’s $2.8 billion rights offering that was backstopped by members of the Ad Hoc Group as well as the $7.2 billion exit financing. Moelis & Company also acted as the Ad Hoc Group’s principal advisor in connection with negotiating the $6.5 billion Debtor-in-Possession (“DIP”) Term Loan, assembling one of the largest DIP financings ever during a period of great uncertainty in the credit markets.

February 2010

€1.1 billion

Financial advisor to the Ad Hoc Steering Committee of €1.1 billion CMBS Noteholders of Fleet Street Finance Two on its financial restructuring

On February 24, 2010, Fleet Street Finance Two P.L.C. (“FSF2”) completed its debt restructuring and consequently became the first Commercial Mortgage Backed Securities (“CMBS”) Issuer in Europe to achieve an extension of the legal final maturity of its CMBS. FSF2 had issued its CMBS in 2006 as part of a €3.5 million financing of the properties of German retailers Karstadt and Quelle (“K&Q”). However, in the summer of 2009 K&Q became insolvent and a complex restructuring was required to avoid a liquidation. Moelis & Company acted as financial advisor to the Ad Hoc Committee of the €1.1 billion CMBS Noteholders of FSF2 in a deal that involved extending the CMBS maturity to stabilize the capital structure and allow Karstadt to exit insolvency and be sold to a new investor. In return for the extension, CMBS noteholders benefitted from increased margin, improvement of the cashflow waterfalls including increased amortization of the senior CMBS tranches and various structural enhancements which were implemented to defend the CMBS credit ratings. This was one of the first CMBS deals to be fully restructured in what is, following the explosion in structured finance deal size and complexity that took place during the credit boom, a new and intricate sector for European restructuring.

December 2009

$470 million

Exchange Offer
Trusted advisor to YRC Worldwide Inc.

On December 31, 2009, YRC Worldwide Inc. (“YRC,” Nasdaq: YRCW) completed a $470 million debt-for-equity exchange offer, which resulted in a significantly improved liquidity profile. On February 23, 2010, Moelis & Company executed a private placement of $70 million of 6% Convertible Senior Notes. Proceeds from the issuance were used to satisfy the remaining amounts outstanding on the company’s 8 1/2% Guaranteed Notes due April 15, 2010, with excess proceeds available to be used for general working capital purposes. The two transactions were part of a broad restructuring effort which also included ABS facility, credit facility and union agreement amendments and provided YRC with runway to execute its business plan. Moelis & Company acted as financial advisor, joint lead dealer manager and joint lead placement agent on the transactions and continues to serve as financial advisor on YRC’s broader restructuring efforts.