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CypressTree Investment Management Company, Inc. General Overview *
 

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    CypressTree Investment Management Company, Inc. General Overview * CypressTree Investment Management Company, Inc. General Overview * Presentation Transcript

    • CypressTree Investment Management Company, Inc. General Overview* December 2005 www.cyptree.com *To be used only in conjunction with a CypressTree Investment Management Company oral presentation.
    • www.cyptree.com Table of Contents Overview 3 Loan Investment Process 13 Systems 27 Administrative 35 Appendix: CypressTree Investment Management Team 38 CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 2
    • www.cyptree.com Overview CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 3
    • www.cyptree.com Investment Advisor Overview CypressTree Investment Management Company, Inc. is a premier manager of leveraged loans and high yield bonds. CypressTree offers investors: An established platform for managing leveraged loans and high yield bonds • Size required to compete effectively: $2.0 billion in assets under management • Product offerings include: CLO’s, Synthetic CDO’s, institutional separate accounts, and offshore funds • High quality systems and infrastructure • Formed in 1988, with 17-years of experience over various economic cycles • Experience managing public and private investment vehicles • Strong risk-adjusted return profile An experienced investment team • Four portfolio managers and seven credit analysts • Principals each have at least 24 years or more experience in the asset class • Long-term relationships with issuers, underwriters, trading desks and research groups • Fully-developed policies and procedures and strong investment process • Significant marketing and client service experience CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 4
    • www.cyptree.com Company History Founded in 1988 under the name of Prospect Street Investment Management Co., Inc. In 2001, Principals of Prospect Street purchased CypressTree (founded in 1996) CypressTree and Prospect Street business merged under the name of CypressTree Company Milestones: • The first managed, institutional CLO, Prospect Street Senior Portfolio, L.P., in 1990 • Prospect Street High Income Portfolio (PHY) a NYSE-listed public high yield bond fund in 1988 • CypressTree Senior Floating Rate Fund, First no-load, monthly liquid, loan fund in 1997 • CIP I and CIP II Two multi-manager CLOs in 1997 and 1998 • CypressTree: Focused Investment Fund, LLC. Two commingled pools for insurance companies in 1997 and 1998 • Prospect International Debt Strategy Fund, First loan/high yield fund for offshore investors in 1999 • Hewett’s Island CDO, Ltd., in 2002 • CypressTree Alternative Income Fund, a loan fund for offshore investors, in 2003 • CypressTree Leveraged Alternative Income Fund, a leveraged, loan fund for offshore investors, in 2004 • Hewett’s Island II CLO, Ltd., closed in 2004 • Hewett’s Island III CLO, Ltd., closed in 2005 • Whitebark Pine I, Ltd., closed in 2005 CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 5
    • www.cyptree.com Product Overview I. Low Leveraged Funds CypressTree Alternative Income Fund (CAIF) launched successfully in the second quarter 2003 • CAIF is a low leveraged, open-ended loan fund, registered in Guernsey and listed on the Irish Stock Exchange • CAIF utilizes leverage of 25-30% of assets • Weekly liquidity II. Medium Leveraged Funds CypressTree Leveraged Alternative Income Fund launched, August 2004 • CLAIF is a leveraged, open-ended loan fund, registered in Guernsey and listed on the Channel Islands Stock Exchange • CLAIF is designed to offer a more liquid, less volatile alternative to CLO equity investments • CLAIF utilizes up to 6 times leverage • Monthly liquidity CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 6
    • www.cyptree.com Product Overview III. Structured Products – CLO’s Existing CDO’s/CLO’s • CypressTree Investment Partners I, Ltd. (1997) • Whitebark Pine I, Ltd. (2005) $575MM assets Market Value CLO (70% Loans, 20% HY Bonds, $170MM notional assets 10% Emerging Markets Bonds) (100% Bank Loans) • CypressTree Investment Partners II, Ltd. (1998) • CypressTree Synthetic CDO I (2005) $250MM assets Portfolio of credit default swaps (70% Loans, 30% HY Bonds) $110MM of tranches • Hewett’s Island CDO, Ltd. (2002) $250MM assets (85% Loans, 15% HY Bonds) Hewett’s Island CLO II, Ltd. (2004) $315MM assets Up to 5% for HY Bonds • Hewett’s Island CLO III, Ltd. (2005) $400MM assets Up to 5% for HY Bonds CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 7
    • www.cyptree.com Principals Loans & Bonds Investment/Finance Below Investment Grade Richard E. Omohundro, Jr. 36 years 32 years John A. Frabotta 36 37 Martha Hadeler 26 24 Robert E. Weeden 28 20 Preston I. Carnes, Jr. 42 30 CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 8
    • www.cyptree.com CypressTree Platform Investment Products Offered • CLOs • Offshore funds • Institutional separate accounts • Leveraged loan trusts Staff Depth • 4 senior portfolio managers • 7 analysts • 1 trader • 1 risk manager • Systems technicians • Experienced marketing/client service team members • Product development specialists • Compliance analysts • Experienced operations team Established Systems and Infrastructure • Wall Street Office • Wall Street Analytics • LoanX • Portfolio Management Analytics (PMA) • Bloomberg • Secure Network CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 9
    • www.cyptree.com CypressTree Organization* CypressTree Investment Management Co. Senior Managing Director Richard E. Omohundro Jr., CFA Investment Management Operations & Office Mgmt. & Client Service Regulatory Administration Technology Credit Investment Committee Head of Research External Reporting & Manager Chairman John Frabotta Finance Client Service Compliance Richard E. Omohundro Jr., CFA Joseph Canavan, CPA, CFA, Cynthia Wong Laura Hawes CIO Credit Analysts CCO Gerald Brant Joseph Canavan, CPA, CFA, John Frabotta Vivian Meng Assistant CCO Michelle Patterson Controller Peter Carnes Marketing/Product Ricardo Cardona Operations Daniela Visita Martha Hadeler Development Dan Zou Receptionist Bob Weeden Rodney Landis Patrick O'Keefe, CFA Nora Boukus Risk Manager Katherine Portfolio Managers Brendan Ryan Wilkins Damien Mount File Clerk Martha Hadeler Alex Schilling Operations Manager Peter Carnes Dan Downey Burke Malek Michael Fund Accountant Davalla Bob Weeden Technology John Frabotta Ryan Eckert Trade Coordinator Katie O'Connor Trader Jeremy Roberts * Certain individuals perform multiple roles CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 10
    • www.cyptree.com Composite Loan Performance (2000-2005) YTD 1 year 3 year 5 year Oct 2005* 2004* 2002* 2000* CypressTree Composite 4.75% 5.17% 6.77% 6.36% LSTA ** 4.09% 5.13% 5.64% 5.97% CSFB *** 4.59% 4.41% 4.26% 6.00% * Performance shown is gross average annual rate of return for all portfolios managed. ** S&P/LSTA Leveraged Loan Index Monthly Returns *** The CFSB Leveraged Loan Upper Tier Index Performance versus Index S&P/LSTA CypressTree Leveraged Loan Composite Index Composite Difference 1997 (3/97 - 12/97) 6.71% 5.33% 1.38% 1998 7.67% 5.25% 2.42% 1999 4.04% 3.65% 0.39% 2000 4.33% 4.92% -0.59% 2001 3.01% 4.21% -1.20% 2002 2.90% 2.16% 0.74% 2003 12.49% 9.77% 2.72% 2004 5.17% 5.13% 0.04% - Past performance is not indicative of future results CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 11
    • www.cyptree.com 2004-2005 Monthly Performance by Portfolio Type Year To Date 2004 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Return Higher Quality Portfolios Hewett's Island I (CLO) 0.34% 0.40% 0.47% 0.31% 0.24% 0.69% 0.35% 0.22% 0.29% 0.52% 0.45% 0.40% 4.77% CAIF 0.96% 0.27% 0.51% 0.45% 0.33% 0.77% 0.46% 0.20% 0.35% 0.59% 0.44% 0.50% 5.99% LSTA Index* 0.82% 0.29% 0.43% 0.45% 0.07% 0.71% 0.27% 0.21% 0.41% 0.45% 0.53% 0.37% 5.13% CSFB Upper Tier Index** 0.45% 0.35% 0.40% 0.33% 0.25% 0.45% 0.37% 0.29% 0.19% 0.41% 0.43% 0.40% 4.41% CLAIF 0.64% 0.66% 0.49% 1.81% LSTA Index* 0.45% 0.53% 0.37% 1.36% CSFB Upper Tier Index** 0.41% 0.43% 0.40% 1.25% Lower Quality Portfolios CIP I & CIP II *** (CLO) 2.13% -1.26% 0.47% 1.20% -0.45% 0.15% 0.57% 0.10% 0.68% 0.16% 0.90% 0.33% 5.05% Year To Date 2005 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Return Higher Quality Portfolios Hewett's Island I (CLO) 0.54% 0.54% 0.62% 0.13% -0.12% 0.11% 0.81% 0.60% 0.49% 0.44% 4.24% Hewett's Island II (CLO) 0.55% 0.69% 0.64% 0.20% -0.17% 0.33% 0.98% 0.58% 0.52% 0.42% 4.84% CAIF 0.43% 0.56% 0.55% 0.14% -0.08% 0.42% 0.62% 0.83% 0.43% 0.51% 4.49% CLAIF 0.40% 0.62% 0.57% 0.11% 0.07% 0.71% 0.68% 0.68% 0.52% 0.41% 4.88% LSTA Index* 0.36% 0.53% 0.48% -0.09% 0.20% 0.54% 0.70% 0.67% 0.37% 0.26% 4.09% CSFB Upper Tier Index** 0.47% 0.56% 0.54% 0.15% 0.22% 0.55% 0.66% 0.53% 0.42% 0.39% 4.59% Lower Quality Portfolios CIP I *** (CLO) 1.42% -1.89% -1.30% -0.27% 3.65% 0.76% 1.94% 0.67% 0.92% 0.82% 6.81% *S&P/LSTA Leveraged Loan Index Composite **The CFSB Leveraged Loan Upper Tier Index ***CIP II no longer under management as of October 2004. Reports are based on the information and data gathered by the manager and are believed to be accurate, but CypressTree Investment Management Co., Inc. must be accepted with no guarantee of completeness or accuracy. CypressTree General Overview, December 2005 Past Performance is not necessarily a guarantee of future performance. Page 12
    • www.cyptree.com CypressTree Investment Management: Loan Investment Process Guidelines CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 13
    • www.cyptree.com Investment Philosophy We believe that the key to delivering consistently superior investment performance lies in controlling risk. CypressTree’s overall approach is a bottom-up, credit intensive process, emphasizing credit quality and structure over yield spread • Comprehensive analysis • Judgment developed over many economic cycles Thorough credit analysis is combined with a defensive portfolio strategy • Close monitoring of assets and quick reaction to changes in credit quality • Disciplined emphasis on broad diversification Maintain an investment team with many years of experience Communicate regularly and openly with investors at www.cyptree.com CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 14
    • www.cyptree.com Credit Investment Team Richard E. Omohundro Chairman-Credit Investment Martha Hadeler John Frabotta Portfolio Manager Committee Head of Credit Research Peter Carnes Bob Weeden Portfolio Manager Portfolio Manager Credit Investment Committee Jeremy Roberts Ricardo Cardona Dan Downey Rodney Landis Michelle Patterson Brendan Ryan Alex Schilling Dan Zou Trader Credit Analyst Credit Analyst Credit Analyst Sr. Investment Credit Analyst Credit Analyst Credit Analyst Analyst • Airlines • Finance & • Media & • Automotive • Real Estate • Paper & Packaging • Waste Services Insurance Entertainment • Beverage, Food, & • Chemicals • Home & Office • Electronics • Oil & Gas • Healthcare • Cable Tobacco • Personal Furnishings • Machinery • Utilities • Printing & • Telecomm • Grocery & Retail Transportation • Diversified • Structured Publishing • Bus. Equipment & • Consumer Manufacturing Financial Services Products • Metals & Mining Obligations •Textiles CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 15
    • www.cyptree.com CypressTree Investment Process Guidelines Trade Credit Review Screen Analyze Select Construct Oversight Workout Policy Execution & Monitoring Universe of Corporate Leveraged Companies • High technology • Physical commodity Exclude • Real estate • Emerging market exposure • Small company borrowings Exclude • Single asset financings • Unsecured subordinated loans Exclude Acceptable Investment for CypressTree Portfolio CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 16
    • www.cyptree.com CypressTree Investment Process Guidelines Trade Credit Review Screen Analyze Select Construct Oversight Workout Policy Execution & Monitoring Management Analysis Attend management presentations Assess quality of management, commitment, ownership, and experience in industry and leveraged companies Speak with vendors, customers, research analysts and other relevant parties Operating Business Analysis Analyze business type, track record, revenues, cost variables, capital requirements, labor relations, pension plan liabilities, litigation Review breadth of product line and product lifecycle Customer base – concentration and quality Markets – regional, international, FX exposure Industry Analysis Analyze competitive dynamics and future prospects for the industry Review competition, market shares, barriers to entry CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 17
    • www.cyptree.com CypressTree Investment Process Guidelines Trade Credit Review Screen Analyze Select Construct Oversight Workout Policy Execution & Monitoring Financial Statement Analysis Review historical performance/ audited statements Perform scenario analysis/ cash flow analysis & financial modeling/ sensitivity analysis Review management projections Stress assumption of management case to determine liquidity -- Vary revenue growth, margins, capital spending -- Analyze repayment capability absent asset sales and refinancing Compare leverage and coverage ratios to industry and market standards Collateral Analysis & Debt Coverage Liquidation analysis vs. going concern value --Tangible property valuation --Trademarks/ patents appraisal CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 18
    • www.cyptree.com CypressTree Investment Process Guidelines Trade Credit Review Screen Analyze Select Construct Oversight Workout Policy Execution & Monitoring Capital Structure Subordinated Debt (public or private), equity Borrowing Structure – Holding Co. vs. Operating Co., Subsidiaries Transaction Analysis Agent Bank - Reputation for Structuring Skills and Support of Transaction Purpose – Refinancing, Acquisition, Dividend, etc Sponsor – Reputation, Industry Expertise, and Support of Investments Availability of Financing for Working Capital Maturity, Amortization Schedule, Cash Flow Sweep Credit Agreements – Financial Covenants, Cross Default Refinancing Risk Lending Spread – Step-down Formula Relative Value CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 19
    • www.cyptree.com CypressTree Investment Process Guidelines Trade Credit Review Screen Analyze Select Construct Oversight Workout Policy Execution & Monitoring Formal Formal Written Investment Written Unanimous Decision Analysis Committee Analysis Meeting Typical Meeting Format Analyst presentation and discussion Additional exogenous risks Worst-case scenario Relative value comparison Vote CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 20
    • www.cyptree.com CypressTree Investment Process Guidelines Trade Credit Review Screen Analyze Select Construct Oversight Workout Policy Execution & Monitoring Each transaction is evaluated on its credit-worthiness and on its impact to the existing portfolio. Considerations Issuer diversification Industry diversification Impact of other measures of diversification including geography, defensive vs. cyclical, etc. Risk/return Portfolio credit quality Portfolio liquidity Specific investment criteria/objectives of each portfolio Trade Execution Full-time trader in constant contact with the market CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 21
    • www.cyptree.com CypressTree Investment Process Guidelines Trade Credit Review Screen Analyze Select Construct Oversight Workout Policy Execution & Monitoring Credit Review and Monitoring Each analyst inputs updated information into PMA, an internal electronic credit and portfolio tracking system (PMA is a product of S&P) Regular Staff Meetings with Market Intelligence from Trader Security Prices from Capital Markets Financial Reports (at least quarterly) with results compared to covenants, prior periods, projections and other companies Outside 3rd Party Equity and Bond Research Review of requests for amendments and waivers – Portfolio Manager approval required Credit Review and Monitoring– PMA Specifics Appropriate financial information Comparison of current performance/projections Quarterly financial reports with results compared to covenants, prior periods, projections, competitors CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 22
    • www.cyptree.com CypressTree Investment Process Guidelines Trade Credit Review Screen Analyze Select Construct Oversight Workout Policy Execution & Monitoring Review of key credit statistics Total Debt/EBITDA Senior Debt/EBITDA EBITDA/Interest Covenant Compliance Liquidity Analysis Cash position Revolver availability Access to capital Collateral coverage analysis Positioning of the credit in capital structure relative to the overall company valuation Relative value analysis Current trading levels of debt/equity as well as comparability with similar transactions Other appropriate industry and/or company news CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 23
    • www.cyptree.com CypressTree Investment Process Guidelines Trade Credit Review Screen Analyze Select Construct Oversight Workout Policy Execution & Monitoring Daily Weekly Monthly Quarterly Ongoing Price Movements Analysis on all Reconciliation with Covenant Fund compliance watch list credits Trustee/Swap compliance Counterparty Rating Actions Liquidity review Fund performance Industry review Fund performance review Trading desk Market feedback Industry review Formal review of Assets reviewed Market intelligence all assets, including promptly upon updating financial ratings, models downgrades, or sudden price declines Forward calendar Review compliance Formal watch list Amendments tests review CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 24
    • www.cyptree.com CypressTree Investment Process Guidelines Trade Credit Review Screen Analyze Select Construct Oversight Workout Policy Execution & Monitoring Workout strategy in CLOs is to maximize recovery without jeopardizing diversification and other tests. Portfolio team has substantial workout experience. Credits stay with the originating analysts when they become problems. Analyst is responsible for identifying problem credits and all monitoring. Monitor results vs. plan Price action on stocks and bonds Research news that impacts company and industry Problem credits monitored weekly. CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 25
    • www.cyptree.com Independent Risk Management Richard E. Omohundro • Participate in all investment committee meetings. Senior Managing Director • Create weekly risk reports for all products. • Weekly risk review meeting with SMD. • Hedge foreign exchange risk of non-US dollar share Patrick O’Keefe classes of market value portfolios. Risk Manager • Oversee Operations Department. • Perform structural analysis of new and existing deals. • Create cash projections and return analyses. Operations Department • Analyze firm-wide aggregate exposures Damien Mount Operations Manager • Monitor external market indicators Burke Malek Fund Accountant Ryan Eckert Trade Coordinator CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 26
    • www.cyptree.com CypressTree Systems CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 27
    • www.cyptree.com Technology CypressTree maintains a highly experienced systems and reporting team with state-of-the-art technology, enabling it to produce accurate and timely portfolio analyses as well as providing efficient monitoring and reporting capabilities CypressTree advocates advanced technology at all times to facilitate the timely inflow and outflow of real time information on all of its investments and across all of its portfolios CypressTree actively utilizes the following: − Portfolio Management Analytics (PMA)- Credit tracking system − Wall Street Office (WSO)- Administrative tracking system − Wall Street Analytics − iCDO − Loan X- Loan pricing service − Bloomberg- Research and analytic service − Dynamic Web Site: www.cyptree.com − A Secure Network CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 28
    • www.cyptree.com Portfolio Management Data Analytics (PMA) PMA is a critical component of CypressTree’s portfolio monitoring system PMA is a product of Standard & Poor’s Corporation PMA is a comprehensive access based, database that was developed to track credit related issues such as trailing and projected credit statistics, financial ratios, financial covenants and collateral PMA is an in-depth credit analysis tool that tracks portfolio statistics including weighted average spread, term, as well as concentration by industry, sector, rating, equity sponsor and agent/arranger PMA has the ability to import balance information and market prices from third party sources on a real time basis CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 29
    • www.cyptree.com PMA Sample Portfolio Deal Sheet CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 30
    • www.cyptree.com Wall Street Office (WSO) WSO is a secure, web-based application provided by a JPMorgan Chase subsidiary. WSO is a low-cost data processing solution that allows the client access to real-time portfolio data anytime and anywhere via the internet. Provides clients the ability to enter trades, run reports, enter marks, update referential data and receive/reconcile cash. The application details all relevant facility information including active contract detail, principal pay down activity and pre- determined interest receivables. WSO links the underlying investments across all client portfolios tracked in the application. This makes for more accurate and reliable holdings data for clients. CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 31
    • www.cyptree.com WSO Functionality Complete tracking of asset activity received via agent bank faxes forwarded from client. Daily cash reconciliation between clients’ data in WSO and their trustees’ data. Access to 125 standard accounting and portfolio analysis reports with dynamic properties. Custom reports can be estimated and developed by consulting group based on client requirements. Pricing dependent on client’s sourcing desires. Available sources include IDC, LoanX and LPC. Update the ratings/SICs for fund securities from 3rd party data sources (Moody’s, S&P, etc.) Client will have access to a copy of their database via secure FTP website for Disaster Recovery purposes. CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 32
    • www.cyptree.com WSO Sample Web Application • Daily transactions processed • Trades entered and settled • Position details viewed • Records of all data stored • Track historical data: ratings, spreads and industry codes • Performance calculated CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 33
    • www.cyptree.com iCDO iCDO is a web-based portfolio management tool iCDO Functionality • Streamlines operations through seamless interfaces with Trustee, market data vendors and rating agencies • Comprehensive compliance testing • Hypothetical trading • Real time inquiry/reports CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 34
    • www.cyptree.com Administrative CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 35
    • www.cyptree.com Investor Tools Online Instant Access to Financial Information. Visit www.cyptree.com for NAV, news, and general information. Portfolios and confidential shareholder information are password protected. Dedicated Client Service Team. Available to answer any questions about the fund and its performance. Marketing Support. Written material, prospectuses, brochures. Portfolio Manager available for presentations semi-annually. Sales Support. Marketing staff available for one-on-one presentations. CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 36
    • www.cyptree.com Contact Information HOW TO CONTACT US: CypressTree Investment Management Company One Boston Place, 16th Floor Boston, Massachusetts 02108-4419 Telephone: (617) 371-9300 Facsimile: (617) 371-9362 E-mail: info@cyptree.com CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 37
    • www.cyptree.com Appendix: CypressTree Investment Management Team CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 38
    • www.cyptree.com Richard E. Omohundro Jr., CFA Mr. Omohundro is Senior Managing Director and Portfolio Manager for CypressTree Investment Management Co., Inc. He is a Principal of CypressTree as well as founder of CypressTree affiliate, Harborview Capital (f.k.a. Prospect Street Affiliated Companies), in 1988. He is responsible for strategic corporate direction as well as having a senior role in investment policy for the various investment vehicles managed by CypressTree. Prior to founding the company, he was a Managing Director of Capital Markets and a member of the Leveraged Transactions Commitment Committee at Merrill Lynch where he worked from 1978 to 1988. While at Merrill Lynch, Mr. Omohundro had extensive experience with troubled companies in a wide range of industries. He has served on financial restructuring committees as well as in informal restructuring efforts since 1978. Mr. Omohundro began his career with a Connecticut-based investment management firm where he was portfolio manager of a balanced investment company. Mr. Omohundro is a graduate of the U.S. Naval Academy (B.S., 1963) and of the University of Virginia (M.B.A., 1969). He has been a CFA charter holder since 1975 and is a member of the CFA Institute and the Boston Security Analysts Society. CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 39
    • www.cyptree.com John A. Frabotta Mr. Frabotta is the Chief Investment Officer and a portfolio manager for CypressTree Investment Management Company. He is also a Principal of CypressTree. As Chief Investment Officer, he is responsible for the daily management of investment strategy of all portfolios. Mr. Frabotta was an original founder of CypressTree affiliate, Harborview Capital, which he joined in 1988. He also managed the high yield bond portfolios for CypressTree affiliated companies continuously since their inception. Prior to that, he spent nine years with Merrill Lynch as Director of High Yield Research. During his tenure, he gained extensive experience with below investment-grade securities, distressed securities, and structuring and marketing high yield issuers. His business career began in 1968 when he entered First National Bank of San Diego’s commercial division. After two years, he moved to the investment department as a research analyst. He remained there for three years before relocating to Boston to serve as Research Director for S-G Securities. Mr. Frabotta holds a B.S. in Economics and Accounting from San Diego State University and an M.B.A. from Suffolk University. CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 40
    • www.cyptree.com Martha Hadeler Ms. Hadeler is Managing Director and a Portfolio Manager for CypressTree Investment Management Co., Inc. She is also a Principal of CypressTree. Since joining a CypressTree affiliate in 1999, Ms. Hadeler has been responsible for CypressTree's corporate loan activity. She brings to this position 24 years of experience in capital markets and non-investment grade finance. Ms. Hadeler joined CypressTree from Citicorp (1988-1999) where she was Managing Director in charge of U.S. Loan distribution. She managed the distribution of syndicated bank loans totaling $180 billion annually. Her responsibilities included establishing price, developing structure, determining syndication strategy, establishing commitment levels and fees and working with co-arrangers and relationships officers to ensure successful syndication of all deals. Ms. Hadeler started her career in investment banking at Drexel Burnham Lambert (1981-1988) where initially she spent four years as General Manager of the Tokyo office. Ms. Hadeler is a graduate of Brown University (B.A., 1976) and Columbia University Graduate School of Business (M.B.A., 1981). Ms. Hadeler is fluent in Japanese. CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 41
    • www.cyptree.com Robert E. Weeden Mr. Weeden joined CypressTree in 2002 as a Managing Director and Principal. He is a Portfolio Manager and he oversees the development of structured products. His 28 years of finance experience include LBO, merchant banking, high yield, mezzanine, and private placement transactions. He also has extensive restructuring and workout experience. Before joining CypressTree, Mr. Weeden was Managing Director, Global Industrial Group in the Corporate Finance Division of UBS Warburg. Prior to the merger of PaineWebber into UBS Warburg in 2001, Mr. Weeden was Managing Director-Group Head in the Investment Banking Division of PaineWebber, Inc., managing the High Yield Origination and Global Industrial groups. From 1992 to 1996 Mr. Weeden was managing Director for High Yield Origination at Dillon, Read & Co. Mr. Weeden started his career at Merrill Lynch Capital Markets in 1977. Mr. Weeden has an M.B.A from The Wharton School and a B.A. in Economics from Stanford University and holds NASD Series 7, 24, and 63 licenses. CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 42
    • www.cyptree.com Preston I. (Peter) Carnes, Jr. Mr. Carnes is a Managing Director and Portfolio Manager for CypressTree Investment Management Co., Inc. He joined CypressTree affiliate, Harborview Capital (f.k.a. Prospect Street) more than fifteen years ago as one of the first institutional portfolio managers of bank loans. Currently, he directs all corporate loan activity. Previously, he spent one year with a financial guaranty subsidiary of the Prudential Insurance Company. His primary role was to direct the development of a securitization program for middle market loans. His responsibilities included establishing an integrated credit process which met actuarial and regulatory standards. Prior to joining CypressTree, Mr. Carnes had nearly fourteen years experience with bank loan asset management responsibilities. Most of that time was at Chemical Bank where he established asset pricing strategies and helped to develop the first bankwide loan sale program. His early experience at Chemical Bank covered seven years directing lending activities in a marketplace with a credit portfolio of about $1 billion. Mr. Carnes began his business career in 1964 with American Airlines in various economic research and planning positions and later served for two years as Vice President and Corporate Treasurer. Mr. Carnes holds an M.B.A. from Stanford University and received an undergraduate degree from Yale University. CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 43
    • www.cyptree.com Gerald A. Brant Mr. Brant joined CypressTree in 2005 as a Vice President. His 7 years of capital markets experience includes equity research and institutional sales both domestically and internationally. Prior to CypressTree, Mr. Brant was Head of Research Sales at Rhodes Analytics a Boston based US Investment Strategy boutique research firm and Vice President, Business Development at Harborview International Fund Management. From 1997 to 2000, Mr. Brant was a Research Assistant at Merrill Lynch where he worked on the Global Investment Strategy team in the office of Merrill’s Chief Investment Strategist. Mr. Brant has a BA from Clark University. He is fluent in French, Spanish, and Portuguese. CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 44
    • www.cyptree.com Cynthia M. Wong Ms. Wong joined CypressTree in 2002 as a Managing Director. Her 24 years of capital markets experience include equity and fixed income research, trading and distribution both domestically and internationally. Before joining CypressTree, Ms. Wong was Global Head of Capital Markets at Citigroup Private Bank from 1997 to 2001. From 1994 to 1997, Ms. Wong was a Managing Director of Global Securities Research at Citicorp Securities Inc. where she managed global equity and fixed income research in 15 countries. Ms. Wong was a Senior Vice president, High Yield Bond Group with Donaldson Lufkin and Jenrette from 1989 to 1994, where she ran the Japan Desk in New York and opened the Fixed Income office in Tokyo. Prior to DLJ, Ms. Wong was a Vice President of the High Yield Capital Markets with Merrill Lynch Capital Markets Group. Ms. Wong has an MBA from Stanford Graduate School of Business and a BA in Economics from Smith College. She holds NASD Series 7, 63, and 24 licenses and is conversant in French, Spanish, and Chinese. CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 45
    • www.cyptree.com Patrick O’Keefe Mr. O’Keefe is the Risk Manager for CypressTree Investment Management Co., Inc. He is responsible for measuring and reporting the risks of CypressTree and its affiliated companies. He joined the firm in November 2003. Prior to joining Cypress Tree, Mr. O'Keefe worked in the Market Risk Management Department at The Bank of Tokyo Mitsubishi. He performed a dual middle-office and risk management function supporting the North American derivative trading operations of the bank. Prior to that, Mr. O'Keefe worked for Natwest Markets Corp. as a Junior Equities Trader and also worked in the Derivative Operations Department of Bear Stearns. Mr. O'Keefe is a graduate of Boston University (B.S. 1995) and is currently earning an MBA from New York University. He is scheduled to graduate in May, 2007. He holds a CFA Charter, awarded in 2003, and is a member of the CFA Institute and the Boston Society of Security Analysts. CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 46
    • www.cyptree.com CypressTree Analysts and Traders Jeremy Roberts, Trader Brendan Ryan, Credit Analyst • Trading senior bank debt and high yield corporate bonds • Prior experience in accounting and IT development in • Prior experience as a securities trader financial institutions • BA from Boston University and MBA from Suffolk • Interned at FMR Co. as equity research analyst University • BS from Boston College and MBA from MIT Sloan School of Management Michelle Patterson, Senior Investment Analyst • Market research analysis and database management Rodney Landis, Credit Analyst experience • 8 years experience in financial services industry • Familiarity with consumer goods and healthcare • Experience in equities, options, fixed income industries • BS from UC Berkeley and MBA from Boston University • BS from Northeastern University Alex Schilling, Credit Analyst Ricardo Cardona, Credit Analyst • Prior experience at Wellington Management • Financial and economic research experience • Interned at CypressTree in 2004 as credit analyst • Familiarity with company valuation in mergers and • BS from Northeastern University acquisitions • Double major in Business Administration/Finance & Dan Downey, Credit Analyst Economics • BA from Boston University • Prior analytic experience in North American and European telecommunications industry • Prior capital markets experience in high yield Dan Zou, CFA, Creidt Analyst investments • 5 years industry experience • BA from Stanford University and MBA from NYU Stern • Prior experience in market research for the School of Business telecommunication and technology industries. • MBA from Northeastern University CypressTree Investment Management Co., Inc. CypressTree General Overview, December 2005 Page 47