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  "documentTitle": "Macy's Inc. (M)",
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  "presentationDate": "2016-01-11 00:00:00",
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  "notes": "Includes pro forma cash and debt tables showing the impact of JV transactions.",
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      "kind": "callout",
      "text": "85% of the cash flow generated from the JVs' rent can be distributed back to Macy's OpCo, if desired or needed",
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      "text": "Assumes Macy's credit card earnings are valued in-line with Macy's operating business, despite being a higher ROI, less volatile earnings stream",
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      "text": "Because the JV transaction can generate such large cash proceeds, which significantly decreases Macy's current debt burden, the pro forma Macy's OpCo alone is worth more than Macy's current stock price, while Macy still owns 85% of the JV and its cash flows.",
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      "text": "Value per share: $42.77",
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      "text": "Because the JV transaction can generate such large cash proceeds, which significantly decreases Macy's current debt burden, the pro forma Macy's OpCo alone is worth more than Macy's current stock price, while Macy's still owns 85% of the JV and its cash flows.",
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      "text": "Source: Company filings, Bloomberg, and Starboard Value estimates. (1) Consensus 2016E EBITDA based on estimate released subsequent to Macy's January 6, 2016 press releases. (2) 5.75x represents Macy's current EBITDA trading multiple.",
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      "text": "Pro forma cash and Pro forma debt tables",
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      "text": "Consensus 2016E EBITDA $3,290; (-) Additional rent expense ($937); Pro forma EBITDA $2,353; Multiple 5.75x; Enterprise value $13,530; (-) Net debt ($433); Equity value $13,097; Value per share of Macy's OpCo $42.77",
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      "text": "Macy's is able to maintain healthy EBITDA while paying down most of its debt after the JV transactions.",
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