{
  "docId": "019de06f-3063-736e-8efe-3c325f18f2f1",
  "docSlug": "8a2b56079f523e69bea9092fc1eb3322",
  "documentTitle": "Pershing Square | Activist Presentation Deck | 58 slides",
  "authorId": "pershing-square",
  "authorName": "Pershing Square Capital Management",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "activist_investor",
  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2006-01-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 24,
  "pageCount": 58,
  "prevPage": 23,
  "nextPage": 25,
  "slideType": "propose_solution",
  "function": "propose_solution",
  "density": "dense",
  "nDataPoints": 4,
  "notes": "The slide outlines a corporate restructuring plan involving spin-off/IPO and debt recapitalization.",
  "elementsJson": null,
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019de06f-3063-736e-8efe-3c325f18f2f1/24",
  "deckHref": "/decks/019de06f-3063-736e-8efe-3c325f18f2f1",
  "deckJsonHref": "/decks/019de06f-3063-736e-8efe-3c325f18f2f1.json",
  "deckAnchorHref": "/decks/019de06f-3063-736e-8efe-3c325f18f2f1#slide-24",
  "components": [
    {
      "bbox": {
        "h": 0.07,
        "w": 0.585,
        "x": 0.278,
        "y": 0.893
      },
      "kind": "callout",
      "text": "Our Initial Proposal is available on the internet at http://www.valueinvestingcongress.com/Final-Pres.pdf",
      "attrs": null,
      "subkind": "primary",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a40cb99e-cf8a-4585-8be9-440d72d9b59d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.9,
        "x": 0.05,
        "y": 0.615
      },
      "kind": "list",
      "text": "Step 4: Use Debt financing and IPO proceeds to Refinance all of the existing net debt (approximately $5bn ) at Brand McDonald's. Repurchase shares and pay transaction fees and expenses",
      "attrs": null,
      "subkind": "timeline-item",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2cd2fdf7-0852-4dd9-8409-42bd98e0f4ab",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.9,
        "x": 0.05,
        "y": 0.515
      },
      "kind": "list",
      "text": "Step 3: Issue $14.7bn of financing secured against real estate. Implies approximately $9.7bn of incremental debt",
      "attrs": null,
      "subkind": "timeline-item",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "37e147a9-5138-4ff9-b14c-abe12f91a5cb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.9,
        "x": 0.05,
        "y": 0.415
      },
      "kind": "list",
      "text": "Step 2: IPO of 65% of McOpCo. McOpCo is deconsolidated and transparent financials are released to investors",
      "attrs": null,
      "subkind": "timeline-item",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "80efb711-10c5-43e5-9616-786a47d8e05e",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.9,
        "x": 0.05,
        "y": 0.315
      },
      "kind": "list",
      "text": "Step 1: McOpCo to be organized as an independent entity. Signs \"arm's-length\" rent and franchise agreements with McDonald's",
      "attrs": null,
      "subkind": "timeline-item",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "825a4c25-1bd2-4f3d-90c2-e22a5407742c",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.024,
        "w": 0.265,
        "x": 0.04,
        "y": 0.243
      },
      "kind": "paragraph",
      "text": "Our Initial Proposal called for...",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "faab92d4-1c9f-4875-a4fb-f61691f40883",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.25,
        "x": 0.03,
        "y": 0.85
      },
      "kind": "source-note",
      "text": "(1) Assumes $6.35bn of net debt on 12/31/05 at consolidated McDonald's of which $1.35 bn of net debt is allocated to McOpCo and $5.0 bn of net debt allocated to Brand McDonald's.",
      "attrs": {
        "numbered": true
      },
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1bf80fc3-c121-457a-a636-d27721494011",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.036,
        "w": 0.408,
        "x": 0.349,
        "y": 0.105
      },
      "kind": "title",
      "text": "Review of Our Initial Proposal",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1e4ba7b3-a835-4493-b27d-296bc703f5bd",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "breakup-spinoff",
      "slug": null,
      "matchId": "dd474853-36a9-48ac-b7d9-a8b965b6d120",
      "evidence": "Proposes creating an independent entity (McOpCo) and IPOing a portion of it.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}