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  "documentTitle": "TD Securities | Investment Banking Pitch Book | 40 slides",
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  "authorName": "TD Securities",
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  "presentationDate": "2022-06-01 00:00:00",
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  "notes": "Includes tax implications (withholding tax and Pillar II) and credit rating assessment.",
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      "text": "Forecast Shareholder Loan Principal + Interest Repayment Schedule",
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      "text": "The current EOT Shareholder Loan interest rate (L + 6.5%) is believed to be lower than the cost of funding through market-based alternatives. In assessing an appropriate market rate to discount the future Shareholder Loan repayments, TD has considered the following: Weighted average duration of the Shareholder Loan is ~10 years. Illustrative credit ratings analysis suggests a B1 credit rating, based on assessment of sovereign risk and single asset risk. B1 credit rating would correspond to an 8% – 9% coupon in today's market. Additional spread of 3% – 4% applied to reflect subordinated nature. Based on this analysis, we estimate a market-based nominal interest rate of 11% – 13%. Implied after-tax real rate of 6.25% – 7.75%. When determining fair value of Shareholder Loan, TD discounted future payments receivable by TRQ at this market-based rate. Currently subject to 10% withholding tax. Tax arbitration loss may result in ~US$880mm of additional taxes payable (possible increase in WHT rate to 20%). Implementation of Pillar II global minimum tax would result in ~US$1bn of additional taxes payable (possible increase in WHT rate to 15% and taxes payable on annual accrued interest).",
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      "text": "Source: Public filings and Company management. Note: Values shown in US$mm. Note: Shareholder loan amounts shown on a 34% basis. (1) Repayment schedule based on a levered nominal model (pre-tax); forward LIBOR forecast based on TD Securities interest rate hedging team forecast. (2) Includes principal and accrued interest as at June 30, 2022. (3) Assuming 2% inflation rate and 25% tax rate. (4) Based on 66% attributable basis.",
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      "text": "Sensitivity Analysis of NPV vs Discount Rate",
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