Lehman HY

2010 HIGH YIELD BOND AND
SYNDICATED LOAN CONFERENCE
High Yield and Leveraged Loan Strategy

Upside Remains Despite Record Returns
Brad Rogoff
Michael Anderson
March 24, 2010*
* Updated to include polling results on March 29, 2010

Overview and Outlook

2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Audience Polling Questions CONFERENCE
*Polling results from live audience of ~60 investors at the Barclays Capital 2010 High Yield Bond and Syndicated Loan Conference
AND SYNDICATED LOAN
AND SYNDICATED LOAN
AND SYNDICATED LOAN
Upside Remains Despite Record Returns CONFERENCE
• We are forecasting 7–8% total return for HY and 8–9% total return for leveraged loans
in 2010
• While other assets classes may have favorable excess returns, high yield bonds and loans
should outperform
• High yield bonds should be somewhat insulated from any rate moves because of its
significant yield / coupon
• Loans should benefit from rising LIBOR rates later in the year, among other things
2010 Returns Forecasts Yields Across US Fixed Income Assets(1)
Excess Returns Total Returns
10%
US IG 4–5% (0.3)–0.6%
8%
EUR IG 2.5–3.5% 1–2%
6%
US HY 11–12% 7–8%
EUR HY 10–13% 9–12% 4%
US Lev. Loans 8–9% 8–9% 2%

EUR Lev. Loans 7–9% 7–9% 0%
Asia 6–7% 2–3% HY Loans EM IG Credit MBS ABS Treasury
___________________________ (USD) CMBS
Source: Barclays Capital.
1. Loan yield calculated as the sum of 3mo LIBOR and an effective spread (grossed up coupon, 3y pull to par).
Loans Have Been Less Volatile 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
than Bonds CONFERENCE
• Loans have performed in line with high yield bonds year-to-date

• During the peak of the crisis, LCDX was the most volatile instrument, but HY CDX has been
higher beta recently
• The LCDX and HY CDX have traded 4–5pts apart, which is fair value in an optimistic
default scenario; in a more bearish default scenario,(1) we expect the indices to trade
9–10pts apart
Trailing 3m Price Volatility(2) HY Bond Versus Leveraged Loan Returns

30% 16%
12%
20%
8%
4%
10%
0%
0% (4%)
Nov-07 Apr-08 Sep-08 Feb-09 Jul-09 Dec-09 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10
LCDX (OTR) HYCDX (OTR) S&P / LSTA Loan Index Barclays HY Index
___________________________
Source: Barclays Capital, Markit, S&P LCD, Moody’s.
1. Bearish default scenario assumes 26% and 25% cumulative default rates for HYCDX and LCDX, respectively.
2. Price volatility is calculated by annualizing the trailing 3m standard deviation of the daily % change (i.e., the difference between the natural
log of the present and prior day’s prices).
Default Rates Should Approach Long- 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Term Averages CONFERENCE
• Bond and loan issuer-weighted default rates peaked in 2010 at 14.5% and 8.3%, respectively
• The HY default rate is declining from these record highs and should reach 3% by year-end
• Recoveries have improved, but they are upwardly biased because they include distressed exchanges
• The average defaulted bond(1) in the MBBI is trading at $44, and the average defaulted loan trades at
$63, reflecting a strong bid from distressed investors
HY and Loan Issuer Default Rate (Trailing 12m) US Unsecured Bond Recovery (Trailing 12m)
20% 100
15% 80
10% 60
5% 40
0% 20
Dec-98 Aug-00 Apr-02 Dec-03 Aug-05 Apr-07 Dec-08 Jul-04 Apr-05 Jan-06 Oct-06 Jul-07 Apr-08 Jan-09 Oct-09
HY Loan US Senior Unsecured Bond US All Loan
___________________________
Source: Barclays Capital, Moody’s.
1. Excluding Lehman Brothers.
Market Technicals
AND SYNDICATED LOAN
AND SYNDICATED LOAN
AND SYNDICATED LOAN
AND SYNDICATED LOAN
Fund Flow Technicals CONFERENCE
• Two $900mm+ weekly outflows in early February demonstrated the short-term influence of
retail on HY valuations
• Inflows have returned impressively fast relative to other similar outflow periods
• We expect retail and institutional inflows to continue to support valuations in 2010, albeit at
a slower pace than that witnessed in 2009
• We expect allocations to leveraged loans in HY portfolios to rebound from recent lows
Weekly High Yield and Loan Fund Flows Loan Repayment Rates
$bn
4 20%
3 16%
2
12%
1
(1) 8%
(2) 4%
(3)
0%
Jun-07 Jan-08 Aug-08 Mar-09 Oct-09
1Q97 4Q98 3Q00 2Q02 1Q04 4Q05 3Q07 2Q09
HY Loans
___________________________
Source: Barclays Capital, S&P LCD, Lipper FMI.
AND SYNDICATED LOAN
Supply and Maturities CONFERENCE
• We forecast $120–130bn of high yield issuance in 2010 with the use of proceeds becoming
more diverse than 2009 when 75% was used for refinancing
• We expect $70–80bn of leveraged loan issuance with LBOs and other releveraging
transactions as a significant source of supply
• Loan and bond maturities through 2016 shrank by ~$110bn in 2009
• Maturities in 2010–11 are only $82bn of bonds and $13bn of institutional loans, but
institutional loan maturities are $401bn in 2012–14
HY and Loan Supply HY and Loan Maturities
$bn $bn
200 250
160 200
120 150
80 100
40 50
0 0
1Q98 3Q99 1Q01 3Q02 1Q04 3Q05 1Q07 3Q08 1Q10 2010 2011 2012 2013 2014 2015 2016
HY Bonds Leveraged Loans HY Bonds Institutional Loans
___________________________
Source: Barclays Capital, S&P LCD, S&P / LSTA Performing Loan Index.
CDS and Cash Volumes Still 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Fairly Robust CONFERENCE
• Cash volumes were marginally lower for high yield bonds in February, despite
elevated volatility
• Significant issuance was likely a factor in strong January volumes
• CDS net notionals have certainly declined since 2008 but have leveled out recently
• An uptick in CDX volumes recently shows more macro hedging
Credit Derivatives Net Notional Values HY TRACE Volume

$trn $bn
4 8
3 6
2 4
1 2
0 0
Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Jan-10 Mar-10 Nov-09 Nov-09 Dec-09 Dec-09 Jan-10 Feb-10 Feb-10 Mar-10
Daily Volume Rolling 1-Week Average
CDS Single Names Credit Default Indices and Tranches
___________________________
Trading Themes
AND SYNDICATED LOAN
AND SYNDICATED LOAN
Across Credit Quality, We Prefer a 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Barbell Approach CONFERENCE
• We like double-B credits because they are trading exceedingly wide of long-term
averages
• Lower correlation with interest rates should also benefit low-quality paper in a
rising rate environment
• Significant capital in the distressed market combined with a lack of distressed
assets should support low-quality valuations
Correlation of Yield Changes in Treasury and HY Ba–Baa Spread

0.8 bps
600
0.4
400
(0.0)
(0.4) 200
(0.8) 0
Aug-99 Aug-01 Aug-03 Aug-05 Aug-07 Aug-09 Jan-94 Sep-96 May-99 Jan-02 Sep-04 May-07 Jan-10
Ba B Caa
___________________________
Short-Dated High Yield Bonds at 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Attractive Spreads CONFERENCE
• Investors can obtain substantial yield by High Yield Statistics

moving into short duration paper of high- Total OAD < 3 OAD > 3
beta credits with strong liquidity Market Value (%) 100.00 24.16 75.84
OAD 4.34 1.99 5.09
• Yield-to-call paper provides ample current
Yield to Worst 8.647 7.843 8.902
yield despite negative convexity
Price 97.1 98.7 96.6
OAS 597.4 630.8 586.7
Non-Distressed Short Maturity Debt
Non-Distressed
bps %
Market Value (%) 91.82 22.46 69.36
1,000 12
OAD 4.40 1.98 5.18
800 10 Yield to Worst 7.882 6.667 8.275
Price 99.5 102.0 98.8
600 8
OAS 524.3 524.1 524.4
400 6 Distressed
Market Value (%) 8.18 1.70 6.48
200 4
OAD 3.73 2.04 4.17
0 2 Yield to Worst 17.237 23.410 15.620
Feb-95 Aug-97 Feb-00 Aug-02 Feb-05 Aug-07 Feb-10 Price 76.1 68.8 78.3
OAS (LHS) YTW (RHS) OAS 1,417.8 2,043.6 1,253.8
___________________________
AND SYNDICATED LOAN
High Current Income Outperforms CONFERENCE
• In an environment characterized by carry-like returns, high-quality, high-current-yield notes

have marginally outperformed the rest of the market with substantially less downside
• The high coupon also protects against Treasury sensitivity. If the bond extends due to
higher Treasury rates, investors may see better absolute returns over the bond’s life as the
high coupon remains outstanding longer
High Quality, High Current Yield vs. US HY High Quality, High CY Returns in Carry Environment
Ba/B
%
US HY 9% < CY < 11%
16
Market Value (%) 100.0 13.0
Current Yield (%) 8.59 9.76 12
Average Coupon 8.32 9.82
8
Average Price 96.96 100.62
OAS (bp) 601 615
4
Yield to Worst (%) 8.64 8.87
OAD 4.27 4.54 0
Amount Outstanding ($bn) 786.1 98.0 1996 1997 2004 2006
YTD Return(1) 3.69 3.79 HY Index Ba/B, CY (9–11%)
___________________________
1. YTD returns through 3/16/10.
AND SYNDICATED LOAN
The Negative Basis Is Normalizing, 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
and Positive Basis Now Exists CONFERENCE
• We see very few opportunities for negative basis trades that have short-term catalysts
• Investors looking for non-traditional ways to get long high yield credits should consider
selling protection on issuers trading with a positive cash-CDS basis
• In the front end, CDS curves are pricing in a much lower short-term probability of default
than cash curves
HY Cash-CDS Basis Cash Curves vs. CDS Curves

bps bps
200 400
0 0
(400)
(200)
(800)
(400)
(1,200)
(600) (1,600)
(800) Jan-04 Mar-05 Jun-06 Aug-07 Nov-08 Feb-10
Mar-07 Oct-07 May-08 Dec-08 Jul-09 Feb-10 Cash 2s5s CDS 2s5s
___________________________
AND SYNDICATED LOAN
AND SYNDICATED LOAN
AND SYNDICATED LOAN
Amendments and Spread Increases CONFERENCE
• As long as LIBOR remains low, non-traditional loan investors will need to focus on total
return and not current yield if they wish to invest in loans
• The prevalence of LIBOR floors in new loan issuance and the expectation of rising interest
rates will benefit loan yields throughout 2010
• Repayment rates should rebound to historical levels and the lower dollar price means that
repayments will have a bigger impact
Amendments and Spread Increases(1) 2010 Loan IRR vs. Prepayment Rate
bps IRR
240 10.0%
180 9.5%
120 9.0%
60 8.5%
0 8.0%
2008 2009 1Q09 2Q09 3Q09 4Q09
(148) (387) (100) (113) (90) (84) 7.5%
Covenant Relief Loan Increase / Extension 10% 15% 20% 25% 30%
Waiver / Forbearance Prepayment Rate
___________________________
Source: Barclays Capital, S&P LCD.
1. X-axis displays year / quarter and number of amendments in parentheses. 4Q09 Waiver / Forbearance is NA.
AND SYNDICATED LOAN
Plenty of Loans in the CLO Sweet Spot CONFERENCE
• As reinvestment periods come closer to ending, CLOs have several incentives

• Trade into credits that are trading $80–90 and allow them to build par OC cushion
• Trade out of CCC credits into higher rated credits to avoid future trading restrictions
• The primary market structured bid for loans will remain muted, but we expect robust $35–40bn loan
demand from secondary CLOs in 2010
• For a sufficient spread increase, loan extensions, covenant amendments, and waivers were
successfully completed and provided stressed companies with some runway – CLO managers have
widely accepted the extension of loan maturities in exchange for higher yields
Loans Trading in $80–90 / Rated CCC+ or Below 2009–YTD Amend-and-Extends

30% Institutional Revolver
25% Launched 59 116

20% Approved 49 89
15%
Added LIBOR floor 21 26
10%
Avg Extension (yrs) 2.0 1.9
5%
Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Avg Spread Increase (bps) 170 168
CCC+ or below CFR Price >$80, <$90 Avg Amendment Fee (bps) 26 41
___________________________
Source: Barclays Capital, S&P LCD.
AND SYNDICATED LOAN
AND SYNDICATED LOAN
Financials CONFERENCE
• The financials component of the HY Index has grown substantially since late 2006
• While it is traditionally difficult to make the funding model work for a HY issuer, many of the
largest financials have a substantial amount of unencumbered assets from which to issue
• The regulatory environment should be a positive for hybrids, but credit selection is key
• The lower average dollar price of financials makes for an attractive risk-reward profile
Financials as a % of the HY Index Largest Financials in the US HY Index

20% Rank in HY Amount
Ticker Index Outstanding ($mm)
16% AIG 1 23,700
CIT 2 23,186
12%
GMAC 4 18,706
8% BAC 16 6,165
RBS 26 4,647
4%
SFI 46 2,967
0% RESCAP 54 2,594
Mar-00 Sep-02 Mar-05 Sep-07 C 58 2,540
MV component Par component LIBMUT 68 2,250
___________________________
AND SYNDICATED LOAN
Contacts CONFERENCE
High Yield Credit Strategy High Yield Credit Strategy

Brad Rogoff Michael Anderson
212 412 7921 212 412 7936
bradley.rogoff@barcap.com michael.anderson@barcap.com
Disclaimer
AND SYNDICATED LOAN
Analyst Certification and Important Disclaimers CONFERENCE
Analyst Certification(s)
We, Brad Rogoff and Michael Anderson , hereby certify (1) that the views expressed in this research report accurately reflect our personal views about any or all of the subject securities or issuers referred to in
this research report and (2) no part of our compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this research report.
Important Disclosures
For current important disclosures regarding companies that are the subject of this research report, please send a written request to: Barclays Capital Research Compliance, 745 Seventh Avenue, 17th Floor,
New York, NY 10019 or refer to https://ecommerce.barcap.com/research/cgi-bin/all/disclosuresSearch.pl or call 212-526-1072.
Barclays Capital does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that Barclays Capital may have a conflict of interest that could affect the
objectivity of this report. Any reference to Barclays Capital includes its affiliates. Barclays Capital and/or an affiliate thereof (the "firm") regularly trades, generally deals as principal and generally provides liquidity
(as market maker or otherwise) in the debt securities that are the subject of this research report (and related derivatives thereof). The firm's proprietary trading accounts may have either a long and / or short
position in such securities and / or derivative instruments, which may pose a conflict with the interests of investing customers. Where permitted and subject to appropriate information barrier restrictions, the firm's
fixed income research analysts regularly interact with its trading desk personnel to determine current prices of fixed income securities. The firm's fixed income research analyst(s) receive compensation based on
various factors including, but not limited to, the quality of their work, the overall performance of the firm (including the profitability of the investment banking department), the profitability and revenues of the Fixed
Income Division and the outstanding principal amount and trading value of, the profitability of, and the potential interest of the firms investing clients in research with respect to, the asset class covered by the
analyst. To the extent that any historical pricing information was obtained from Barclays Capital trading desks, the firm makes no representation that it is accurate or complete. All levels, prices and spreads are
historical and do not represent current market levels, prices or spreads, some or all of which may have changed since the publication of this document. Barclays Capital produces a variety of research products
including, but not limited to, fundamental analysis, equity-linked analysis, quantitative analysis, and trade ideas. Recommendations contained in one type of research product may differ from recommendations
contained in other types of research products, whether as a result of differing time horizons, methodologies, or otherwise.
AND SYNDICATED LOAN
Important Disclaimers (continued) CONFERENCE
This publication has been prepared by Barclays Capital, the investment banking division of Barclays Bank PLC, and/or one or more of its affiliates as provided below. This publication is provided to you for
information purposes only. Prices shown in this publication are indicative and Barclays Capital is not offering to buy or sell or soliciting offers to buy or sell any financial instrument. Other than disclosures relating
to Barclays Capital, the information contained in this publication has been obtained from sources that Barclays Capital believes to be reliable, but Barclays Capital does not represent or warrant that it is accurate
or complete. The views in this publication are those of Barclays Capital and are subject to change, and Barclays Capital has no obligation to update its opinions or the information in this publication. Barclays
Capital and its affiliates and their respective officers, directors, partners and employees, including persons involved in the preparation or issuance of this document, may from time to time act as manager, co-
manager or underwriter of a public offering or otherwise, in the capacity of principal or agent, deal in, hold or act as market-makers or advisors, brokers or commercial and/or investment bankers in relation to the
securities or related derivatives which are the subject of this publication.
The analyst recommendations in this report reflect solely and exclusively those of the author(s), and such opinions were prepared independently of any other interests, including those of Barclays Capital and/or
its affiliates.
Neither Barclays Capital, nor any affiliate, nor any of their respective officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from any use of this
publication or its contents. The securities discussed in this publication may not be suitable for all investors. Barclays Capital recommends that investors independently evaluate each issuer, security or instrument
discussed in this publication and consult any independent advisors they believe necessary. The value of and income from any investment may fluctuate from day to day as a result of changes in relevant
economic markets (including changes in market liquidity). The information in this publication is not intended to predict actual results, which may differ substantially from those reflected. Past performance is not
necessarily indicative of future results.
This communication is being made available in the UK and Europe to persons who are investment professionals as that term is defined in Article 19 of the Financial Services and Markets Act 2000 (Financial
Promotion Order) 2005. It is directed at, and therefore should only be relied upon by, persons who have professional experience in matters relating to investments. The investments to which it relates are
available only to such persons and will be entered into only with such persons. Barclays Capital is authorized and regulated by the Financial Services Authority ('FSA') and member of the London Stock
Exchange.
Barclays Capital Inc., US registered broker/dealer and member of FINRA (www.finra.org), is distributing this material in the United States and, in connection therewith accepts responsibility for its contents. Any
U.S. person wishing to effect a transaction in any security discussed herein should do so only by contacting a representative of Barclays Capital Inc. in the U.S. at 745 Seventh Avenue, New York, New York
10019.
Subject to the conditions of this publication as set out above, Absa Capital, the Investment Banking Division of Absa Bank Limited, an authorised financial services provider (Registration No.: 1986/004794/06), is
distributing this material in South Africa. Absa Bank Limited is regulated by the South African Reserve Bank. This publication is not, nor is it intended to be, advice as defined and/or contemplated in the (South
African) Financial Advisory and Intermediary Services Act, 37 of 2002, or any other financial, investment, trading, tax, legal, accounting, retirement, actuarial or other professional advice or service whatsoever.
Any South African person or entity wishing to effect a transaction in any security discussed herein should do so only by contacting a representative of Absa Capital in South Africa, 15 Alice Lane, Sandton,
Johannesburg, Gauteng 2196. Absa Capital is an affiliate of Barclays Capital.
Non-U.S. persons should contact and execute transactions through a Barclays Bank PLC branch or affiliate in their home jurisdiction unless local regulations permit otherwise.
In Japan, foreign exchange research reports are prepared and distributed by Barclays Bank PLC Tokyo Branch. Other research reports are distributed to institutional investors in Japan by Barclays Capital Japan
Limited. Barclays Capital Japan Limited is a joint-stock company incorporated in Japan with registered office of 2-2-2, Otemachi, Chiyoda-ku, Tokyo 100-0004, Japan. It is a subsidiary of Barclays Bank PLC and
a registered financial instruments firm regulated by the Financial Services Agency of Japan. Registered Number: Kanto Zaimukyokucho (kinsho) No. 143.
Barclays Bank PLC Frankfurt Branch is distributing this material in Germany under the supervision of Bundesanstalt fuer Finanzdienstleistungsaufsicht (BaFin). This material is distributed in Malaysia by
Barclays Capital Markets Malaysia Sdn Bhd.
IRS Circular 230 Prepared Materials Disclaimer: Barclays Capital and its affiliates do not provide tax advice and nothing contained herein should be construed to be tax advice. Please be advised that any
discussion of U.S. tax matters contained herein (including any attachments) (i) is not intended or written to be used, and cannot be used, by you for the purpose of avoiding U.S. tax-related penalties; and (ii) was
written to support the promotion or marketing of the transactions or other matters addressed herein. Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.
© Copyright Barclays Bank PLC (2010). All rights reserved. No part of this publication may be reproduced in any manner without the prior written permission of Barclays Capital or any of its affiliates. Barclays
Bank PLC is registered in England No. 1026167. Registered office 1 Churchill Place, London, E14 5HP. Additional information regarding this publication will be furnished upon request. US14765
High Yield Media and Entertainment

2010 Outlook and Best Ideas
Andrew Finkelstein
March 2010
Please see analyst certifications and important disclosures starting after page 13
AND SYNDICATED LOAN
Key Credit Drivers – Media CONFERENCE
Industry Drivers in 2010

• Economic rebound
• Continued improvement in auto sales
• BRIGHT SPOT – Political and Olympic revenues
Positive environment for most
traditional media in 2010
Barclays Capital Equity Research Estimates

2009 2010
Local Broadcast TV (w/Political) (21.2%) 5.0%
Radio (20.1%) 2.2%
Outdoor (14.8%) 6.0%
Newspapers (27.1%) (5.8%)
Magazines (19.6%) (3.0%)
Yellow pages (13.0%) (4.5%)
Total (15.5%) 3.5%
Source: Barclays Capital Equity Research
AND SYNDICATED LOAN
Key Credit Drivers – Television CONFERENCE
• 2009 perfect storm: worst recession in decades, combined with collapse of auto
sales and typical odd year (no political)
• Faster, stronger rebound: 4Q09 up 4%, 1Q10 pacing up double digits
• Retrans: should continue to grow, providing a non-cyclical revenue stream
• Political advertising: contentious mid-term races and upside from Supreme Court
ruling
Local & National TV Revenue – 2Q, 3Q and 4Q 2009 Actual Results and 1Q10 Pacings
Company 2Q09 vs. 2Q08 3Q09 vs. 3Q08 4Q09 vs. 4Q08 1Q10 vs. 1Q09
Allbritton (17.0%) (2.2%) 14.1%
Belo (26.6%) (15.5%) (1.0%) 15.0%
Entravision (25.9%) (21.0%) 0.3%
Gannett (24.4%) (7.3%) 4.9% 11.0%
Gray TV (18.1%) (15.5%) 3.1%
LIN TV (21.6%) (16.3%) 8.6% 16.0%
Meredith (24.4%) (12.9%) 4.4% 15.0%
Nexstar (18.0%) (13.3%) 8.7%
Scripps (27.0%) (16.0%) 4.3%
Sinclair (23.1%) (13.8%) 1.4% 7.0%
Univision (17.8%) (12.9%) (1.6%)
Average (21.7%) (13.3%) 4.3% 12.8%
Source: Company reports and Barclays Capital estimates

AND SYNDICATED LOAN
Key Credit Drivers – Radio CONFERENCE
• Radio revenues were pressured in 2009 from the same macroeconomic

headwinds as television, particularly the decline in auto spend
• Slower rebound: 4Q09 still negative, 1Q10 growth slower than TV
• Long-term: Structural and secular problems with multiple station owners and
excess inventory; competition from new technology (iPods/iPhones, sat radio,
internet radio)
• Expect more muted recovery in 2010
Radio Revenues, 2007 to 2010 YTD
2009 2010
FY 07 FY 08 1Q09 2Q09 3Q09 4Q09 FY 09 Jan Feb
Local (2%) (10%) (26%) (25%) (19%) (10%) (20%)
National (6%) (12%) (27%) (24%) (17%) (10%) (19%)
National and Local (3%) (10%) (26%) (25%) (19%) (10%) (20%)
Other 10% 4% (8%) (5%) (5%) (1%) (5%)
Total (2%) (9%) (24%) (22%) (16%) (8%) (18%) 1% 6%
Source: RAB and Inside Radio
AND SYNDICATED LOAN
Key Credit Drivers – Print Media CONFERENCE
Dead Cat Bounce?

• Newspapers:
• Declines have slowed on easier comps
• Recovery will lag due to cyclical classified
• Cost cutting has stabilized EBITDA
• Long-term secular concerns remain
• Yellow pages:
• Significantly underperformed relative to past recessions
• Exposure to housing and SMB clients
• Recovery lagging and secular problems remain
AND SYNDICATED LOAN
Key Credit Drivers – Auto CONFERENCE
• Auto ad spend has followed sales fairly closely, as they declined 31% and 27%,
respectively, through the first nine months of 2009
• While the extent of the auto recovery remains uncertain, we believe growth in auto
sales will translate to higher ad spend and see the potential for further upside from
auto in 2010
• Belo, LIN and Gannett have all mentioned auto pacing up well over 40% in the first
quarter
Light Vehicle Auto Sales – Actual and Expected

2008 2009 2010 2011
FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY FY
NA Light Vehicle Sales 13.2 2.2 2.6 3.0 2.6 10.4 2.5 3.1 3.2 3.0 11.7 13.5
% change in y/y sales (18.0%) (38.1%) (31.8%) (10.0%) 5.9% (21.0%) 11.9% 18.2% 4.9% 14.9% 12.2% 15.4%
Source: Barclays Capital Equity Research

AND SYNDICATED LOAN
Key Credit Drivers – Expense Cuts CONFERENCE
Most media companies took drastic cost-cutting steps in 2009, with many
claiming to have achieved permanent reductions to fixed cost base
• The reductions will leave companies well positioned to profit from any return to
growth in the top line
• We generally expect companies to achieve higher margins than prior to the

financial downturn
• However, we believe most, if not all, companies have also taken less permanent
expense cuts that would need to be reversed should revenues rebound
• In addition, we remain concerned that certain expense cuts (as in newspaper)

could be detrimental to the quality of the product
AND SYNDICATED LOAN
Key Credit Drivers – Theaters CONFERENCE
• Record 2009 Box Office

• 2009 box office: up 10%, to a record $10.6bn
• avg ticket prices up 4.5% and attendance up 5.4% to 1.41bn attendees
• Blockbusters: nine films with $100mm+ in 4Q alone (e.g., Twilight and Avatar)
• 3-D and DCIP
• Success of Avatar, Alice in Wonderland, and Up shows 3-D content driving
higher attendance and higher ticket prices
• DCIP: 3-D capacity expected to increase from 3.5 to 6 thousand screens by
year-end, without substantial capex spend by exhibitors
• Product Pipeline
• 2010 has a strong slate of upcoming films, including Iron Man 2, Twilight:
Eclipse, and premium 3-D content including Toy Story 3, Harry Potter, and Tron
• 3-D ticket price increase will provide buffer to attendance in 2010
AND SYNDICATED LOAN
Key Credit Drivers – Refinancing CONFERENCE
Number of nearer-term refinancing candidates, including:

Allbritton 2012
Entravision 2013
Gannett 2011, 2012
LIN TV 2013
Nexstar 2012, 2013
Spanish Broadcasting 2012
Sinclair 2012
AND SYNDICATED LOAN
Recent Sector Performance CONFERENCE
• 2009 – As a lower credit-quality sector, media outperformed the high beta-led rally
in the High Yield Index in 2009, returning 81%
• 2010 – The media sector has underperformed the HY Index YTD, up 3% versus
up 3.57%, even as lower quality credits have generally outperformed (CCC
returning 4.14% YTD)
Broadcasting and Publishing Custom Index, Spread to HY and CCC
Spread (bps)
2,500
2,000
1,500
1,000
500
0
(500)
Jan-08 Mar-08 Jun-08 Sep-09 Dec-08 Feb-09 May-09 Aug-09 Nov-09 Jan-10
B&P Custom vs. HY Index (2% Capped) B&P Custom vs. CCC Index
Source: Barclays Capital POINT
AND SYNDICATED LOAN
Top Trade Ideas – Ad Based CONFERENCE
• Buy Univision 9.75% / 10.5% PIKs and Term Loan– Despite short-term hiccups
related to the World Cup and radio ratings, the company should continue to benefit
from rising retrans payments and improving core ad trends. We believe the
company has a clear credit runway until 2014, with no major maturities and
covenant light bank debt
• Buy Near-dated CCU Notes – Completion of the CCO financing has significantly
increased the credit runway, eliminating a potential covenant violation and
reducing amortization for the next three years. Early signs of a recovery in
revenues, combined with the massive expense cuts taken over the past year,
should result in EBITDA improvement and a positive backdrop
AND SYNDICATED LOAN
Top Trade Ideas – Non-Ad Based CONFERENCE
• Buy Nielsen 12.5% Senior Subs and Extended Term Loan – We expect the
company to improve on last year’s performance with stronger growth in both its
core businesses. Given Nielsen’s solid performance and 4-year holding period for
the sponsors, we believe an IPO or other exit by the sponsors is a possibility
• Buy Cengage 10.5% Seniors and Term Loan – Despite the volatility in quarter-
to-quarter results, the company should continue to benefit from its exposure to
countercyclical higher ed
AND SYNDICATED LOAN
Analyst Certification and Important Disclaimer CONFERENCE
I, Andrew Finkelstein, hereby certify (1) that the views expressed in this research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in this research report
and (2) no part of our compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this research report.
One of the analysts on the coverage team owns the common stock of Spanish Broadcasting Systems.
New York, NY 10019 or refer to https://ecommerce.barcap.com/research/cgi-bin/all/disclosuresSearch.pl or call
212-526-1072.
Explanation of the High Yield Sector Weighting System

Overweight: Expected six-month total return of the sector exceeds the six-month expected total return of the Barclays Capital U.S. High Yield 2% Issuer Capped Credit Index, or the Pan-European High Yield
3% Issuer Capped Credit Index excluding Financials, as applicable.
Market Weight: Expected six-month total return of the sector is in line with the six-month expected total return of the Barclays Capital U.S. High Yield 2% Issuer Capped Credit Index or the Pan-European High
Yield 3% Issuer Capped Credit Index excluding Financials, as applicable.
Underweight: Expected six-month total return of the sector is below the six-month expected total return of the Barclays Capital U.S. High Yield 2% Issuer Capped Credit Index or the Pan-European High Yield
Explanation of the High Yield Research Rating System

The High Yield Research team employs a relative return based rating system that, depending on the company under analysis, may be applied to either some or all of the company's debt securities, bank loans,
or other instruments. Please review the latest report on a company to ascertain the application of the rating system to that company.
Overweight: The analyst expects the six-month total return of the rated debt security or instrument to exceed the six-month expected total return of the Barclays Capital U.S. 2% Issuer Capped High Yield Credit
Index, the Pan-European High Yield 3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as applicable.
Market Weight: The analyst expects the six-month total return of the rated debt security or instrument to be in line with the six-month expected total return of the Barclays Capital U.S. 2% Issuer Capped High
Yield Credit Index, the Pan-European High Yield 3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as applicable.
Underweight: The analyst expects the six-month total return of the rated debt security or instrument to be below the six-month expected total return of the Barclays Capital U.S. 2% Issuer Capped High Yield
Credit Index, the Pan-European High Yield 3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as applicable.
Not Rated (NR): An issuer which has not been assigned a formal rating.
Rating Suspended (RS): The rating has been suspended temporarily due to market events that make coverage impracticable or to comply with applicable regulations and/or firm policies in certain
circumstances including where Barclays Capital is acting in an advisory capacity in a merger or strategic transaction involving the company.
AND SYNDICATED LOAN
Important Disclaimer (continued) CONFERENCE
its affiliates.
Exchange.
10019.
Limited. Barclays Capital Japan Limited is a joint-stock company incorporated in Japan with registered office of 6-10-1 Roppongi, Minato-ku, Tokyo 106-6131, Japan. It is a subsidiary of Barclays Bank PLC and
Building – P&L Opportunities Amid a Choppy
Housing Recovery
Michelle Meyer, US Economics
Vincent Foley, US Credit Research
March 2010
Michelle Meyer, US Economics

AND SYNDICATED LOAN
The Return of Housing Demand CONFERENCE
Home Sales on a Bumpy Uptrend

mm, saar mm, saar
1.4 8.0
Forecasts
1.2 7.0
1.0 6.0
0.8 5.0
0.6 4.0
0.4 3.0
0.2 2.0
1999 2001 2003 2005 2007 2009 2011
New Homes Sales (lhs) Existing Home Sales (rhs)
___________________________
Source: National Association of Realtors, Census Bureau, and Barclays Capital.
AND SYNDICATED LOAN
Affordability Has Improved … CONFERENCE
Mortgage Rates at Record Lows Home Prices at Fair Valuation

% Index 1987 = 100
20.0 325.0
16.0 275.0
12.0 225.0
8.0 175.0
4.0 125.0
0.0 75.0
71 78 86 94 02 10 87 91 95 00 04 09
Conventional Average 30-Yr Mortgage Rate Case-Shiller Home Prices
Median Family Income
___________________________
Source: S&P Case-Shiller, NAR, Bloomberg, Haver Analytics, and Barclays Capital.
AND SYNDICATED LOAN
… For Most, but Not All Homebuyers CONFERENCE
GSEs Have Tightened Standards … … but the FHA Has Provided an Offset
FICO Score FHA Share of Purchase Mortgage Loans
770.0 50%
756.0 40%
742.0
30%
728.0
20%
714.0
10%
700.0
03 04 06 07 08 10
Origination Month 0%
01 02 03 04 05 06 07 08 09
Freddie Mac Fannie Mae
___________________________
Source: Freddie Mac, Fannie Mae, FHA, and Barclays Capital.
Declining Inventory Shows Normalization 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
in Demand and Supply Balance CONFERENCE
Inventory Has Declined, but Should Remain Stubbornly High

000s, saar mm, saar
600 4.5
550
Forecasts 4.0
500
3.5
450
400 3.0
350 2.5
300
2.0
250
1.5
200
150 1.0
1999 2001 2003 2005 2007 2009 2011
New Home Inventory (lhs) Existing Home Inventory (rhs)
___________________________
Source: National Association of Realtors, Census Bureau, and Barclays Capital.
Lean Inventory of New Home Sales Imply 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Need for Greater Construction CONFERENCE
Starts Running Below Sales “Under-Building” Should Continue

000s, saar mm, saar
1,500 2.2
(f/c)
2.0
1,300
1.8
1,100 1.6
900 1.4
1.2
700
1.0
500 0.8
0.6
300
0.4
100 0.2
00 02 04 06 08 10 80 83 86 89 92 95 98 01 04 07 10
New 1-Family Home Sales
1-Family Housing Starts: Built for Sale Natural Rate of Starts Actual Starts
___________________________
Source: Census Bureau and Barclays Capital.
Note: Natural Rate of Starts = household formation + trend utilized vacancies + net removal of existing homes - mobile homes.
But Existing Inventories Remain 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Stubbornly High, Posing as Competition CONFERENCE
Large Foreclosure Pipeline Expect 6mm REOs over Next 3 Years

000s of Mortgages Millions of Mortgages Forecasts
6,000 3.5
5,000 3.0
2.5
4,000
2.0
3,000
1.5
2,000
1.0
1,000 0.5
0 0.0
05 06 07 08 09 2005 2006 2007 2008 2009 2010 2011 2012
Seriously Delinquent or Foreclosure
Foreclosure Started REO Completed
Real Estate Owned (REO)
___________________________
Source: Barclays Capital Securitized Products, LoanPerformance.
Government Plans to Limit Foreclosures 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Have Disappointed CONFERENCE
HAMP Has Disappointed HAFA on the Way

000s, Cumulative
• The Home Affordable Foreclosure
1,200 Alternatives Program (HAFA) will be take
effect on April 5
1,000
• HAFA is designed to streamline the use of
800 short sales and deeds-in-lieu of foreclosure
• Applies to borrowers who are HAMP
600 eligible but do not complete a modification.
HAMP servicers are required to comply
400 with HAFA, informing borrowers of the
option if modifications fail
200
• Provides financial incentives for servicers,
0 sellers and junior lien holders
May-09 Aug-09 Nov-09 Feb-10
Permanent Modifications
Active Trial Modifications
___________________________
Source: www.financialstability.gov.
AND SYNDICATED LOAN
Foreclosures Depress Home Prices CONFERENCE
Price Drop More Muted Ex-Distressed Prices to Bounce around the Bottom
% y/y Forecast through 2011
20 20
15 15
10 10
5 5
0 0
(5) (5)
(10) (10)
(15) (15)
(20) (20)
(25) (25)
02 03 05 06 08 09 88 92 96 00 04 08
LoanPerformance: All Homes S&P Case-Shiller, % y/y
LoanPerformance: Excluding Distressed S&P Case-Shiller, % q/q saar
___________________________
Source: LoanPerformance, S&P Case-Shiller, and Barclays Capital.
Volatility Induced by Fluctuations in 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Foreclosures, Partly Related to Seasonals CONFERENCE
Non-Seasonally Adjusted Sales REO Share of Total Sales

% Housing Stock % of Total Sales
12% 60%
10% 50%
8% 40%
6% 30%
4% 20%
2% 10%
0% 0%
05 06 07 08 09 05 06 07 08 09 10
Distressed Voluntary Total Distressed Share

___________________________
Source: Barclays Capital Securitized Products, LoanPerformance.
AND SYNDICATED LOAN
Wide Regional Divergences … CONFERENCE
Histogram of Foreclosures by State Prices vs. Foreclosures by State

# of States Home Prices, % y/y
30 5.0
25 0.0
20 (5.0)
MI
GA
15 IL (10.0)
CA
10 IN
ID (15.0)
NV FL AZ
5
(20.0)
0
3.04 2.41 2.18 1.25– 1.0– 0.75%– < (25.0)
1.5% 1.25% 1.0% 0.75% 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5
Foreclosures Started in Q4, % of Mortgages Foreclosures Started, % Mortgages
___________________________
Source: MBA, LoanPerformance, and Barclays Capital.
AND SYNDICATED LOAN
… Even within “Boom-to-Bust” Markets CONFERENCE
Annual Percent Change in Home Prices by Major Metro Area

Las Vegas
Tampa
Detroit
Miami
Phoenix
Seattle
Chicago
New York
Portland
Atlanta
Charlotte
Minneapolis
Cleveland
Los Angeles
Boston
Denver
DC
San Diego
Dallas
San Fran
(22) (20) (18) (16) (14) (12) (10) (8) (6) (4) (2) 0 2 4 6
% Change Dec 09 / Dec 08
___________________________
Source: S&P Case-Shiller.
Looking Ahead: Higher Rates, but Better 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Macro Backdrop CONFERENCE
Rates to Gradually Trend Higher Unemployment Rate to Decline

% %
9 12
8
10
Forecasts
7
8
6
5 6
4
4
3
2
2
48 60 73 86 99 12
00 02 04 07 09 11
Unemployment Rate
30y Mortgage Rates 10y TSY Forecasts through 2011
___________________________
Source: BLS, Bloomberg, and Barclays Capital.
Economic Recovery Should Be Sustained, 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Supporting Housing CONFERENCE
GDP Growth Should Continue Sustained Recovery Likely to Emerge

Real GDP Growth Indexed to 100 at Start of Recovery
8 110
Forecasts
6 108
4
106
2
104
0
(2) 102
(4) 100
(6) Recession Recovery
98
(8) (5) (4) (3) (2) (1) 0 1 2 3 4 5 6
05 06 07 08 09 10 11 Quarters after (before) Trough
% q/q saar % y/y 1973 1981 1990 2001 Current
___________________________
Source: BEA and Barclays Capital.
AND SYNDICATED LOAN
Housing Outlook at a Glance CONFERENCE
Forecasts Annual Averages

1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 2009 2010 2011
Demand Indicators
New Home Sales m, saar 0.338 0.372 0.406 0.370 0.33 0.40 0.40 0.47 0.52 0.58 0.37 0.40 0.61
Existing Home Sales m, saar 4.610 4.780 5.280 5.970 5.03 5.68 5.47 5.66 5.91 6.10 5.16 5.46 6.19
Supply Indicators
Housing Starts m, saar 0.528 0.540 0.587 0.559 0.60 0.66 0.76 0.87 1.00 1.10 0.55 0.72 1.15
New Inventory m, saar 0.327 0.291 0.261 0.237 0.23 0.22 0.21 0.21 0.21 0.22 0.28 0.22 0.22
Existing Inventory m, saar 3.838 3.798 3.794 3.464 3.58 3.50 3.57 3.65 3.54 3.43 3.72 3.57 3.38
Prices
FHFA Purchase-Only % y/y (7.0) (6.0) (3.8) (1.2) (1.1) (0.8) (0.7) (0.5) 0.3 0.7 (4.6) (0.8) 0.5
Case-Shiller National % y/y (18.9) (14.7) (8.7) (2.5) 1.5 0.8 (0.3) (0.7) 1.5 1.0 (11.5) 0.3 0.7
NAR Median % y/y (15.6) (16.2) (11.5) (4.0) (0.9) 1.3 (0.5) (0.4) 0.9 0.6 (12.1) (0.1) 0.4
Freddie Mac 30yr FRM % 4.85 5.42 5.14 5.05 5.05 5.50 5.70 5.80 6.00 6.20 5.05 5.80 6.40
GDP Components
Residential Investment % q/q, saar (38.2) (23.3) 18.9 5.0 (2.0) 20.0 30.0 30.0 25.0 20.0 (20.4) 9.9 22.8
Personal Consumption % q/q, saar 0.6 (0.9) 2.8 1.7 3.5 2.5 2.5 3.0 2.0 2.5 (0.6) 2.2 2.6
GDP % q/q, saar (6.4) (0.7) 2.2 5.9 3.5 4.0 3.5 3.5 2.5 3.0 (2.4) 3.6 3.2
___________________________
Source: Census Bureau, NAR, S&P Case-Shiller, FHFA, BEA, and Barclays Capital.
Vincent Foley, US Credit Research

Homebuilder Operating Trends

Cancellation Rates Now Roughly In Line 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
with Historical Norms CONFERENCE
Homebuilder Sales Cancellation Rates

50%
45%
43% 43%
40% 39%
40%
33%
30%
30% 29% 29%
25%
22% 23%
20% 20%
20%
LT Average
10%
0%
Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09
___________________________
Source: Barclays Capital and company reports.
Note: Composite includes: BZH, DHI, HOV, KBH, LEN, MDC, PHM, RYL, SPF, and TOL.
Orders Have Trended Higher (Y/Y) for 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Two Consecutive Quarters CONFERENCE
New Home Orders

% y/y
40%
28%
20%
2%
0%
(20%)
(20%)
(27%) (28%)
(31%) (31%)
(40%)
(37%) (39%) (37%) (40%)
(44%)
(60%) (56%)
___________________________
2010 Spring Selling Season to Be Better 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
than 2009; Jan / Feb Trends Positive CONFERENCE
Spring Selling Seasons: Past and Future

% y/y
30%
21%
20%
10%
0%
(10%)
(20%) (15%)
(30%)
(28%) (27%)
(40%)
(40%)
(50%)
2006 2007 2008 2009 2010E
___________________________
Land Charges Have Become Much Less 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Severe than in 2007–2008 CONFERENCE
Land and Other Charges

$bn
20
15
10
0
2006 2007 2008 2009
Land / Inventory Impairments Option Write-Offs / JV Impairments
Goodwill Impairments FAS 109 Charges
___________________________
Closings Still Weak Y/Y, but the Severity 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
of Declines Has Moderated CONFERENCE
Home Deliveries
% y/y
0%
(10%)
(13%)
(20%)
(22%)
(30%)
(32%)
(34%)
(36%)
(40%)
(38%) (38%) (37%)
(41%)
(45%)
(48%)
(60%)
___________________________
Backlog Values Still Under Pressure; Bodes 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Poorly for Future Revenue and Cash Flow CONFERENCE
Backlog Values (Dollar Value)

% y/y
0%
(10%)
(8%)
(20%)
(30%)
(29%)
(40%)
(39%) (39%)
(41%) (41%)
(46%)
(50%)
(50%)
(53%)
(54%) (55%) (56%)
(60%)
(60%)
(70%)
___________________________
Liquidity Snapshot
Homebuilder Liquidity Is Currently 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Impressive; Land Spend Is Key Unknown CONFERENCE
Liquidity and Leverage

Available Tax Total Liquidity – NT Net HB
$mm Cash Refunds / Other Liquidity Cash Needs Debt / Cap
Beazer Homes $432 $125 $579 ($121) 81%
D.R. Horton $1,904 $352 $2,256 $926 28%
Hovnanian
$328 $291 $619 ($54) 108%
Enterprises
KB Home $1,175 $190 $1,390 $936 48%
Lennar $1,167 $320 $1,487 $476 37%
Pulte Homes $1,443 $917 $2,539 $1,321 43%
Ryland $743 $99 $842 $518 16%
Standard
$587 $103 $690 $186 57%
Pacific
___________________________
Source: Barclays Capital, Bloomberg, and company reports.
Capital Markets Were Receptive to the 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Housing Sector; Opportunistic Issuance Likely CONFERENCE
2009-2010 Capital Raising Efforts

$mm
900
750
600
225
450 850
785
50
650
300 90
500 500
400
350 350
150 280 300
230 250 265 250
53
0
MHO RYL MDC KBH SPF BZH DHI LEN TOL HOV USG BDK OC MAS WHR
Senior Secured Senior Unsecured Equity Convertible
___________________________
Source: Barclays Capital, Bloomberg, and company reports.
Trade Recommendations
Standard Pacific 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
(Caa1/CCC+/CC) (NEG/POS/NEG) CONFERENCE
Trade: Sell 5y CDS; Buy SPF 10.75% due 2016

• Significant operational improvement during 2009
Standard Pacific • Profitable (ex-charges) in two of past three quarters; No NT maturities
• MatlinPatterson backstop
• CDS should trade in spread, not points; delta between SPF and group should
compress; 2016s attractive from yield perspective (~9.5%)
bps
900
800
700
600
500
Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10
SPF 5y CDS SPF 10.75% ’16 – OAS
___________________________
Beazer Homes USA 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
(Caa2/CCC/CC) (NEG/POS/STA) CONFERENCE
Trade: Sell 5y CDS; Buy BZH 6.875% due 2015 and/or 8.125% due 2016
• TNW no longer a concern post-secured debt issue (second lien), common
Beazer Homes stock, and mandatory convertible issuance
• Capital structure trades likely in NT (unsecured debt); Lien capacity remains
• CDS should trade in spread over intermediate term; 2015s and 2016s offer
attractive yields (~11%) and tender potential owing to lower dollar price
bps
8,000
6,000
4,000
2,000
0
Mar-08 Jul-08 Nov-08 Mar-09 Jul-09 Nov-09 Mar-10
BZH 5y CDS BZH 6.875% ’15 – OAS BZH 8.125% ’16 – OAS
___________________________
D.R. Horton 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
(Ba3/BB-/BB) (STA/NEG/NEG) CONFERENCE
Trade: Sell DHI 5y CDS; Buy 5.25% due 2015, 5.625% due 2016, or
6.5% due 2016
D.R. Horton • Constructive on credit fundamentally given liquidity ($2.3bn cash post refunds),
low leverage (net debt / cap of 28%), and conservative operating philosophy
• Among first builders to return to profitability (including and excluding charges);
expects to be profitable for all of 2010
• Well positioned for spring selling season, in our view
bps
1,600
1,200
800
400
0
Mar-08 Jul-08 Nov-08 Mar-09 Jul-09 Nov-09 Mar-10
DHI 5y CDS DHI 5.625% ’16 – OAS DHI 5.25% ’15 – OAS DHI 6.5% ’16 – OAS
___________________________
The Ryland Group 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
(Ba3/BB-/BB) (STA/STA/NEG) CONFERENCE
Trade: Buy RYL 8.4% due 2017

The Ryland • Solid liquidity relative to size; $842mm of cash post tax refunds,
Group but excluding restricted cash
• Conservative leverage: Net debt / capitalization of 16%; third lowest
in sector
• Recorded positive operating profits (ex-charges) in 4Q09; expects to be
profitable in 2H10
bps
• CDS is fair value, in our opinion
700
550
400
250
100
May-09 Jun-09 Aug-09 Oct-09 Nov-09 Jan-10 Mar-10
RYL 5y CDS RYL 8.4% ’17 – OAS
___________________________
AND SYNDICATED LOAN
Basis Trade Opportunities CONFERENCE
Negative Basis Trades

5y CDS CDS –
Coupon Maturity Spread (bps) Z-Spread (bps) Z-Spread (bps)
D.R. Horton 5.625% 1/15/2016 189 331 (142)
D.R. Horton 5.625% 9/15/2014 189 330 (141)
D.R. Horton 6.5% 4/15/2016 189 325 (136)
Pulte Homes 5.2% 2/15/2015 193 329 (135)
Pulte Homes 6.25% 2/15/2013 193 327 (134)
___________________________
Source: Barclays Capital and Bloomberg.
AND SYNDICATED LOAN
Contacts CONFERENCE
US Economics US Credit Research

Michelle Meyer Vincent Foley
+1 212 526 7977 +1 212 412 7943
michelle.meyer@barcap.com vincent.foley@barcap.com
Cedric Morris
+1 212 412 3659
cedric.morris@barcap.com
Disclaimer
AND SYNDICATED LOAN
Disclaimer CONFERENCE
We, Michelle Meyer, Vincent Foley, and Cedric Morris, hereby certify (1) that the views expressed in this research report accurately reflect our personal views about any or all of the subject securities or issuers
referred to in this research report and (2) no part of our compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this research report.
212-526-1072.

Underweight: Expected six-month total return of the sector is below the six-month expected total return of the Barclays Capital U.S. High Yield 2% Issuer Capped Credit Index or the Pan-European High Yield 3%
Issuer Capped Credit Index excluding Financials, as applicable.

Rating Suspended (RS): The rating has been suspended temporarily due to market events that make coverage impracticable or to comply with applicable regulations and/or firm policies in certain circumstances
including where Barclays Capital is acting in an advisory capacity in a merger or strategic transaction involving the company.
AND SYNDICATED LOAN
its affiliates.
Exchange.
10019.
High-Yield Technology Sector Outlook

Jeff Harlib
March 2010
AND SYNDICATED LOAN
2009 Technology Sector Review CONFERENCE
• After a difficult 1Q09, the technology sector significantly outperformed the HY

market (only trailing financial sectors in 2009)
• Fundamental recovery from normalization of supply chain and end market
demand recovery
• Margin benefit across sector credits from aggressive cost reduction programs
• Performance improvement across sectors, most significant for semiconductors
• Liquidity concerns from highly leveraged credits abated
AND SYNDICATED LOAN
HY Tech Index vs. High-Yield Index CONFERENCE
2007–2010 Annual and 2009–Current Quarterly Returns

77.23%
80% 35%
32.68%
58.21%
60% 30%
23.63%
40% 25% 23.07%
20%
20% 4.14%
2.72% 14.22%
1.87% 2.19% 15%
0%
6.19%
10%
(20%) 7.71%4.14%
5.98%
(26.16%) 5%
0.31% 2.19%
(40%) (34.86%)
0%
(60%) 1Q09 2Q09 3Q09 4Q09 1Q10
2007 2008 2009 2010 YTD QTD
US Corp High Yield High-Yield Tech Index US Corp High Yield High-Yield Tech Index
Technology Index accounts for 5.0% of US High-Yield Index

___________________________
Source: Barclays Capital Live as of 3/21/2010.
Single-B Index vs. Technology 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Index YTW CONFERENCE
High-Yield Tech Index (9.86%, 712bps), excluding FDC (8.59%, 593bps),

Single-B Corporate Index (8.07%, 553bps)
YTW (%)
30
25
20
15
10
5
9/2/2008 12/21/2008 4/11/2009 7/30/2009 11/18/2009 3/9/2010
B US HY – YTW HY Tech – YTW HY Tech YTW-ex FDC
___________________________
AND SYNDICATED LOAN
Sector Performance CONFERENCE
Technology Equities Have Outperformed

S&P 500 since the March 9, 2009 Market Trough
180 • Returns since
160 3/9/09 trough
• S&P 500
140
• 71%
120
• S&P InfoTech
100 • 87%
80 • Semi Index
60
(SMH)
• 73%
40
20
1/2/2009 4/20/2009 8/6/2009 11/22/2009 3/10/2010
S&P 500 S&P InfoTech Semi Index (SMH)

___________________________
AND SYNDICATED LOAN
Quarterly Sector Revenue Performance CONFERENCE
20.0%
10.0%
0.0%
(10.0%)
(20.0%)
(30.0%)
2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10E
Semis (seq) EMS (seq) IT / Comm Equipment (y/y)
___________________________
Source: Company Reports and Barclays Capital estimates
AND SYNDICATED LOAN
Technology Sector Outlook CONFERENCE
• Moderate increase in 2010 IT spending

• End market demand trends improving (computing, handsets, networking,
consumer / industrial)
• Semiconductor demand trends solid, extended lead times, and selected capacity
constraints; we assume slower growth in 2H10
• Supply chain inventories low; expected to normalize in next few quarters
• Operating leverage from top-line improvement and cost savings
• Healthy sector liquidity
AND SYNDICATED LOAN
End Market Drivers 2008–2011E CONFERENCE
2008 2009 2010E 2011E

US Real GDP (% growth) 0.4% (2.4%) 3.9% 3.4%
US IT Spending ($ in bn) $504 $488 $501 $522
% change 2.0% (3.2%) 2.7% 4.2%
Global IT Spending ($ in bn) $1,499 $1,432 $1,479 $1,556
% change 3.5% (4.5%) 3.3% 5.2%
Global Semiconductor Sales($ in bn) $255 $231 $276 $296
% change (5.4%) (9.6%) 19.9% 6.9%
Global PC Shipments (units in mm) 288 296 344 389
% change 10.8% 2.8% 16.2% 13.1%
Global Mobile Phone Shipments (units in mm) 1,226 1,159 1,313 1,439
% change 6.3% (5.5%) 13.3% 9.6%
Global Carrier Infrastructure Capex ($bn) $95 $89 $93 N/A
% change (0.1%) (6.6%) 4.9%
Global Electronics Markets $1,357 $1,177 $1,227 $1,310
% change (13.3%) 4.2% 6.8%
___________________________
Source: IDC, Gartner and Barclays Capital estimates.
Note: Electronics markets include auto, communications, consumer, data processing, industrial, and aerospace electronics.
AND SYNDICATED LOAN
Semiconductors – EBITDA and Leverage CONFERENCE
1,000 915
706 826 810
800
600 531
344 367 343
400
200
0
Amkor AMD NXP Freescale
2009 EBITDA 2010E EBITDA
25x 23.0x
20x
14.4x
15x
7.6x 9.7x
10x 5.8x
2.7x 3.4x
5x 1.9x
0x
Amkor AMD NXP Freescale
2009 Gross Leverage 2010E Gross Leverage
___________________________
Source: Company Reports and Barclays Capital estimates.
EMS / Equipment – EBITDA 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
and Leverage CONFERENCE
3,000 2,687
2,000
879 931 1,193 7021,081 771 951
1,000 501 686 517 500
474 195 313 465
0
Seagate Jabil Brocade Flextronics Alcatel- Sanmina- Avaya CDW
Lucent SCI
12x 10.1x
8.0x 9.0x
8x 6.8x 6.5x 6.5x
3.1x 3.4x 2.6x 4.1x 4.1x
4x 2.5x 1.7x 2.2x 2.0x
0.7x
0x
Seagate Jabil Brocade Flextronics Alcatel- Sanmina- Avaya CDW
Lucent SCI
2009 Gross Leverage 2010E Gross Leverage
___________________________
Note: Avaya is PF for NES acquisition and assumed synergies. Avaya and Sanmina-SCI are CY09/10; Flextronics is FY10/11.
Services / Software – EBITDA 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
and Leverage CONFERENCE
2,500 2,115 2,161

2,000 1,480 1,380
1,500
1,000 566 539 627 658
500 207 211 167 171
0
Unisys Telcordia GXS Sabre SunGard First Data
15x
12x 10.7x 10.6x
9x 5.9x 5.6x
4.5x 4.4x 4.7x 4.5x 5.6x 5.8x
6x
1.6x 1.6x
3x
0x
Unisys Telcordia GXS Sabre SunGard First Data
2009 Gross Leverage
___________________________
2010E Gross Leverage
Note: Telcordia numbers are FY10/11. EBITDA includes but leverage excludes $27mm of non-cash pension income from EBITDA in both
years. GXS numbers are pro forma for Inovis acquisition and include $8mm of 2010 synergies.
AND SYNDICATED LOAN
Tech CDS vs. 2010E Leverage CONFERENCE
CDS (bps)
1,400
NXP
1,200
FSL
1,000
EK
800
FDC
AMKR UIS AMD SANM SDS
600
ALU TSG
400
STX Flex
200
0
0.0x 2.0x 4.0x 6.0x 8.0x 10.0x
2010E Leverage
___________________________
Source: Barclays Capital estimates as of 3/21/2010.
Note: Flex includes off-BS debt.
Tech Loan YTW vs. 2010E 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Secured Leverage CONFERENCE
YTW (%)
12%
CDW TLB
10% FDC TLB1
SPSN TLB CEN TLB AV TLB
8% SDS Ext TL
Flex TLA FSL Ext TLB
TSG TLB
6%
4%
SDS TLB (L+175)
2%
0%
0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x
2010E Secured Leverage
___________________________
Source: Barclays Capital estimates as of 3/21/2010.
Highlighted Recommendations
AND SYNDICATED LOAN
Freescale vs. NXP CONFERENCE
FSL (Market Weight) NXP (Overweight)
Product Mix 9
Management 9
Redesign Benefits 9
2010 Outlook 9 9
2010E Leverage 9
2010E Free Cash Flow 9
Yield 9
10 1/8% Sr. Sec Nts due '18, (105.625, 7 7/8% Sr. Sec Nts due '14, (93.75,
8.88%, 591bp), 2010E Lev: 6.0x 9.60%, 741bp), 2010E Lev: 4.5x
Current Levels
8 7/8% Sr. Nts due '14, (93.625, 10.62%, 9 1/2% Sr. Nts due '15, (91.125,
840bp), 2010E Lev: 9.7x 11.71%, 922bp), 2010E Lev: 5.8x
5y CDS: 16.5pts 5y CDS: 21.5pts
AND SYNDICATED LOAN
Freescale vs. NXP CONFERENCE
($mm) Freescale NXP

2009 2010E 2009 2010E
Revenue 3,508 4,003 3,694 4,496
% y/y Change (32.9%) 14.1% (31.1%) 21.7%
Revenue (ex-Wireless) 3,037 3,577 3,694 4,496
% y/y Change (27.0%) 17.8% (31.1%) 21.7%
Adj. EBITDA 343 810 376 915
Adj. EBITDA Margin 9.8% 20.2% 10.2% 20.3%
Interest 556 605 363 324
Capex 85 200 96 175
Adj. EBITDA/Interest 0.6x 1.3x 1.0x 2.8x

(Adj. EBITDA – Capex) / Interest 0.5x 1.0x 0.8x 2.3x
Free Cash Flow (159) (48) (841) 111
1st Lien / Bank Total Leverage 14.4x 6.0x 2.4x 0.9x
2nd Lien Total Leverage(1) 20.6x 8.7x 11.2x 4.5x
Total Leverage 23.0x 9.7x 14.4x 5.8x
Total Net Leverage 19.1x 8.2x 11.6x 4.6x
___________________________
Source: Barclays Capital estimates and Company Filings.
1. Second lien leverage is through senior unsecured for FSL.
AND SYNDICATED LOAN
Highlighted Recommendations CONFERENCE
Telcordia CDW
• Rating: Overweight • Term Loan B (L+400) due 2014: 87.25,
9.83%, 731bps, Attractive
• 10% Sr. Sub Notes due 2013: $96.75,
11.31%, 992bps, Attractive • Top line momentum in both Corporate and
Public segments
• Renewed 5y LCP maintenance contract
with Verizon • Gross margin stabilizing
• Backlog and pipeline stabilizing • HP (CDW’s leading vendor) gaining
market share
• Moderate Leverage: 3.1x secured, 4.5x
total, under 4.0x net leverage. >$150mm • 5.6x bank leverage ratio
total liquidity
• Recently raised FY10 EBITDA and FCF
guidance and issued FY11 revenue outlook
of up 1%–2% with stable EBITDA margin
AND SYNDICATED LOAN
Highlighted Recommendations CONFERENCE
Unisys Relative Value

• Rating: Overweight • First Data v. Freescale: Bonds / CDS anomaly
• 12 ¾% 1st Lien Notes due 2014: $116.50, 7.39%, • 5Y CDS: Prefer AMD or AMKR v. SANM or ALU
571bps
• 14 ¼% 2nd Lien Notes due 2015: $119.50, 8.07%,
651bps
• 12 ½% Senior Notes due 2016: $109.50, 9.46%,
730bps
• Improved management execution, cost reductions
have significantly benefited margins
• EBITDA improvement during the past three quarters
($178mm in 4Q09 v. $118mm in 4Q08)
• 2009 FCF $197mm, Total Adj. Leverage: 1.6x,
$648mm of liquidity
• Solid free cash flow, low leverage and improved
debt maturity profile
• IT Services consolidation (Dell / Perot, Xerox / ACS)
AND SYNDICATED LOAN
Analyst Certifications and Important Disclaimers CONFERENCE
I, Jeff Harlib, hereby certify (1) that the views expressed in this research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in this
research report and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this research report.
For current important disclosures regarding companies that are the subject of this research report, please send a written request to: Barclays Capital Research Compliance, 745 Seventh
Avenue, 17th Floor, New York, NY 10019 or refer to https://ecommerce.barcap.com/research/cgi-bin/all/disclosuresSearch.pl or call
212-526-1072.
Barclays Capital does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that Barclays Capital may have a conflict of interest
that could affect the objectivity of this report. Any reference to Barclays Capital includes its affiliates. Barclays Capital and/or an affiliate thereof (the "firm") regularly trades, generally deals
as principal and generally provides liquidity (as market maker or otherwise) in the debt securities that are the subject of this research report (and related derivatives thereof). The firm's
proprietary trading accounts may have either a long and / or short position in such securities and / or derivative instruments, which may pose a conflict with the interests of investing
customers. Where permitted and subject to appropriate information barrier restrictions, the firm's fixed income research analysts regularly interact with its trading desk personnel to
determine current prices of fixed income securities. The firm's fixed income research analyst(s) receive compensation based on various factors including, but not limited to, the quality of
their work, the overall performance of the firm (including the profitability of the investment banking department), the profitability and revenues of the Fixed Income Division and the
outstanding principal amount and trading value of, the profitability of, and the potential interest of the firms investing clients in research with respect to, the asset class covered by the
analyst. To the extent that any historical pricing information was obtained from Barclays Capital trading desks, the firm makes no representation that it is accurate or complete. All levels,
prices and spreads are historical and do not represent current market levels, prices or spreads, some or all of which may have changed since the publication of this document. Barclays
Capital produces a variety of research products including, but not limited to, fundamental analysis, equity-linked analysis, quantitative analysis, and trade ideas. Recommendations
contained in one type of research product may differ from recommendations contained in other types of research products, whether as a result of differing time horizons, methodologies, or
otherwise.

Overweight: Expected six-month total return of the sector exceeds the six-month expected total return of the Barclays Capital U.S. High Yield 2% Issuer Capped Credit Index, or the Pan-
European High Yield 3% Issuer Capped Credit Index excluding Financials, as applicable.
Market Weight: Expected six-month total return of the sector is in line with the six-month expected total return of the Barclays Capital U.S. High Yield 2% Issuer Capped Credit Index or the
Pan-European High Yield 3% Issuer Capped Credit Index excluding Financials, as applicable.
Underweight: Expected six-month total return of the sector is below the six-month expected total return of the Barclays Capital U.S. High Yield 2% Issuer Capped Credit Index or the Pan-

The High Yield Research team employs a relative return based rating system that, depending on the company under analysis, may be applied to either some or all of the company's debt
securities, bank loans, or other instruments. Please review the latest report on a company to ascertain the application of the rating system to that company.
Overweight: The analyst expects the six-month total return of the rated debt security or instrument to exceed the six-month expected total return of the Barclays Capital U.S. 2% Issuer
Capped High Yield Credit Index, the Pan-European High Yield 3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as applicable.
Market Weight: The analyst expects the six-month total return of the rated debt security or instrument to be in line with the six-month expected total return of the Barclays Capital U.S. 2%
Issuer Capped High Yield Credit Index, the Pan-European High Yield 3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as
applicable.
Underweight: The analyst expects the six-month total return of the rated debt security or instrument to be below the six-month expected total return of the Barclays Capital U.S. 2% Issuer
Rating Suspended (RS): The rating has been suspended temporarily due to market events that make coverage impracticable or to comply with applicable regulations and/or firm policies in
certain circumstances including where Barclays Capital is acting in an advisory capacity in a merger or strategic transaction involving the company.
AND SYNDICATED LOAN
This document has been prepared by Barclays Capital, the investment banking division of Barclays Bank PLC (“Barclays”), for information purposes only. This document is an indicative
summary of the terms and conditions of the securities/transaction described herein and may be amended, superseded or replaced by subsequent summaries. The final terms and
conditions of the securities/transaction will be set out in full in the applicable offering document(s) or binding transaction document(s).
This document shall not constitute an underwriting commitment, an offer of financing, an offer to sell, or the solicitation of an offer to buy any securities described herein, which shall be
subject to Barclays’ internal approvals. No transaction or services related thereto is contemplated without Barclays’ subsequent formal agreement. Barclays is acting solely as principal and
not as advisor or fiduciary. Accordingly you must independently determine, with your own advisors, the appropriateness for you of the securities/transaction before investing or transacting.
Barclays accepts no liability whatsoever for any consequential losses arising from the use of this document or reliance on the information contained herein.
Barclays does not guarantee the accuracy or completeness of information which is contained in this document and which is stated to have been obtained from or is based upon trade and
statistical services or other third party sources. Any data on past performance, modelling or back-testing contained herein is no indication as to future performance. No representation is
made as to the reasonableness of the assumptions made within or the accuracy or completeness of any modelling or back-testing. All opinions and estimates are given as of the date
hereof and are subject to change. The value of any investment may fluctuate as a result of market changes. The information in this document is not intended to predict actual results and no
assurances are given with respect thereto.
Barclays, its affiliates and the individuals associated therewith may (in various capacities) have positions or deal in transactions or securities (or related derivatives) identical or similar to
those described herein.
IRS Circular 230 Disclosure: Barclays Capital and its affiliates do not provide tax advice. Please note that (i) any discussion of US tax matters contained in this communication (including
any attachments) cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed
herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.
BARCLAYS CAPITAL INC., THE UNITED STATES AFFILIATE OF BARCLAYS CAPITAL, THE INVESTMENT BANKING DIVISION OF BARCLAYS BANK PLC, ACCEPTS
RESPONSIBILITY FOR THE DISTRIBUTION OF THIS DOCUMENT IN THE UNITED STATES. ANY TRANSACTIONS BY US PERSONS IN ANY SECURITY DISCUSSED HEREIN
MUST ONLY BE CARRIED OUT THROUGH BARCLAYS CAPITAL INC., 200 PARK AVENUE, NEW YORK, NY 10166.
NO ACTION HAS BEEN MADE OR WILL BE TAKEN THAT WOULD PERMIT A PUBLIC OFFERING OF THE SECURITIES DESCRIBED HEREIN IN ANY JURISDICTION IN WHICH
ACTION FOR THAT PURPOSE IS REQUIRED. NO OFFERS, SALES, RESALES OR DELIVERY OF THE SECURITIES DESCRIBED HEREIN OR DISTRIBUTION OF ANY OFFERING
MATERIAL RELATING TO SUCH SECURITIES MAY BE MADE IN OR FROM ANY JURISDICTION EXCEPT IN CIRCUMSTANCES WHICH WILL RESULT IN COMPLIANCE WITH ANY
APPLICABLE LAWS AND REGULATIONS AND WHICH WILL NOT IMPOSE ANY OBLIGATION ON BARCLAYS OR ANY OF ITS AFFILIATES.
THIS DOCUMENT DOES NOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ISSUES RELATED TO AN INVESTMENT IN THE SECURITIES/TRANSACTION. PRIOR TO
TRANSACTING, POTENTIAL INVESTORS SHOULD ENSURE THAT THEY FULLY UNDERSTAND THE TERMS OF THE SECURITIES/TRANSACTION AND ANY APPLICABLE RISKS.
Light at the End of the Gas / Coal Glut?

Michael Zenker
Laurence Jollon
Gary Stromberg
March 2010
AND SYNDICATED LOAN
Agenda CONFERENCE
Gary Stromberg – Introduction

Mike Zenker – Gas and Coal Market Outlook
Laurence Jollon – High Yield Coal Sector Outlook
Gary Stromberg – High Yield Energy Sector Outlook
Jeff Mobley – Chesapeake Energy
Concluding Remarks / Q&A
Mike Zenker
US Supply Has Been 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Stubbornly Resilient CONFERENCE
The headline rig count would suggest a … But a shift to horizontally drilled shale
supply pullback … has boosted per-well production
Gas-directed US Rig Count
1,800 54 600
52 500
50
400
1,200 48
300
46
200
44
600 100
42
40 0
Jan-06 May-07 Sep-08 Jan-10
0
US Marketed Lower-48 Onshore Gas
Jan-08 Jul-08 Jan-09 Jul-09 Dec-09
Production, Bcf/d
Gas-Directed Horizontal Rig Count (RHS)
___________________________
Source: Baker Hughes, Smith S.T.A.T.S., Barclays Capital.
Trans-Atlantic Price Differentials Favor 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
LNG Flows to the US CONFERENCE
A wave of liquefaction capacity commissioned … Non-US / non-European demand growth will

in late-2009 and 2010 places surplus LNG on likely not absorb it all, pushing more LNG into
the market … the spot Atlantic market and into the US
Global Liquefaction Capacity Additions US LNG Imports
Bcf Bcf/d
7 4.0
6 3.5
5 3.0
2.5
4
Forecast
2.0
3
1.5
2 1.0
1 0.5
0 0.0
2003 2005 2007 2009 2011 2004 2005 2006 2007 2008 2009 2010
___________________________
Source: EIA, Waterbourne, Barclays Capital.
Demand Set to Fall, Owing to Power Use 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
of Gas CONFERENCE
As gas prices recover somewhat, coal will

recapture market share
Y/Y Change Annual Output / Demand Y/Y Change in Demand
(2009 vs. 2008) Bcf/d
Power Loads Coal Output Gas Gains 1.0
Drop … Drops … Market Share
Annual GWh Gas
100,000 0.5 displaces
coal …
50,000 0.0
0 (0.5) … Coal recovers
(50,000) lost market share
(1.0)
(100,000)
(150,000) (1.5)
(200,000) (2.0)
(250,000) 2009 2010E
Load Coal Output Gas-Fired Residential + commercial Industrial Power
Output
___________________________
Source: EIA, Barclays Capital.
Surplus Coal Makes Displacement More 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Difficult in 2010 CONFERENCE
Coal displacement was very regional … … And left the US with surplus coal
US Coal Inventories
000 Short Tons
200,000
190,000
180,000
170,000
160,000
150,000
140,000
130,000
120,000
110,000
100,000
5-yr Avg Jun-07 Dec-07 Jun-08 Dec-08 Jun-09
___________________________
Laurence Jollon
AND SYNDICATED LOAN
Domestic Coal Prices Are Rising … CONFERENCE
Despite high inventories and potential further displacement by gas, US coal

prices have risen in recent months
$ $
110 20
Region Current 2011
NAPP $64.00 $69.10 17
90
CAPP $57.40 $65.35
IB $39.00 $39.50 14
70 PRB $11.90 $13.40
11
50
8
30 5
Jan-09 Apr-09 Aug-09 Nov-09 Mar-10
Northern Appalachia (LHS) Central Appalachia (LHS)
Illinois Basin (LHS) Powder River Basin (RHS)
___________________________
Source: Platts.
Note: pricing per ton.
… Partly As Strong Pacific Basin 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Fundamentals Spill Over into the Atlantic CONFERENCE
Pacific Basin fundamentals remain strong, primarily driven by Chinese imports
China Monthly Thermal Coal Trade International Benchmark Pricing

$/mt
10 200
Net Exports
5
150
0
(5)
100
Net Imports
(10)
(15) 50
Jan-04 May-05 Sep-06 Jan-08 May-09 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10
Qinhuangdao FOB Newcastle FOB API4
___________________________
Source: EcoWin, Barclays Capital; monthly data in mm tons.
AND SYNDICATED LOAN
The World Remains Short Met Coal CONFERENCE
Recent $200/mt BHP contract reflects a shortage of met coal amid improving
steel demand
Low-Vol Contract Prices US Metallurgical Coal Market Share
US$/ton Alpha
350 Natural
$200/ton Resources
15%
300
250
Other
Massey
41%
200 Energy
14%
150 Barclays Capital
Equity Research
100
Walter
50 Energy
Arch Coal 12%
0 3% Consol Patriot Coal
Apr-04 Oct-06 Apr-09 Oct-11 Apr-14 Energy 10%
5%
___________________________
We Recommend a Barbell Strategy 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Among Coal Credits CONFERENCE
Key Themes
• Financial results should improve in 2010, further strengthening already robust
credit metrics
• However, we note that leveraging acquisitions remain a risk (i.e., ACI, CNX, MEE)
• Most coal credits are trading inside of the BB and Crossover indices, implying
underperformance in a “coupon-like” return environment
Trade Ideas
• High Quality: own the yieldiest BB credits including ACI, CLD, DRUMCO; sell
names inside of 7% yield with little IG potential (i.e., BTU, ANR, MEE)
• Rising Star Candidate: TCKCN
• Lower Quality: we are constructive on ICOUS (8.75%) and MURREN (9.5%) and
recommend reaching for yield in these names, despite the lack of trading liquidity
___________________________
Gary Stromberg
AND SYNDICATED LOAN
High Yield Energy: Overweight CONFERENCE
• Energy spreads are trading ~45bp through the overall high yield market, the cheapest in
relative terms since July 2007 and tighter than the past 10-year average of 150bp
• Besides valuation, fundamentals also support our Overweight call: oil and gas prices are
likely to increase by 15-25%+ in 2010, hedging protects the downside for many E&Ps, the
rig count is increasing, and we expect a bottom in refining margins
• We recommend the single-B part of the credit curve, focused on higher quality credits and
selective higher yielding opportunities
High Yield Energy Index Less Corporate Index (Spread in bp)
$50
($50)
($150)
Average = (159) bps
($250)
($350)
($450)
($550)
($650)
10/31/2003 6/3/2005 1/6/2007 8/10/2008 3/15/2010
___________________________
Source: Barclays Capital Corporate Credit Research.
AND SYNDICATED LOAN
High Yield Energy: Focus on Single Bs CONFERENCE
Single B Focus with Select CCC Opportunities

• Single B Bonds
• Hilcorp Energy
• Petrohawk Energy
• SandRidge Energy
• Targa Resources Partners
• Single B Loans
• Dresser Inc
• Venoco Inc
• CCC Rated Bonds
• Connacher Oil
• Opti Canada
AND SYNDICATED LOAN
Equity-like Returns Are Likely Behind Us CONFERENCE
High Yield Energy – Summary Returns

(1) (1) (1)
MTD QTD YTD 2009 2008
HY Energy (0.8) 2.7 2.7 54.6 (26.3)
E&P (0.3) 3.2 3.2 52.9 (24.3)
Refining (4.9) (0.9) (0.9) 59.2 (37.7)
Oil Services (1.0) 2.3 2.3 61.7 (28.7)
Pipeline Index (0.2) 5.2 5.2 48.2 (24.8)
Propane Index (0.3) 2.7 2.7 38.4 (14.8)
Overall HY Index 0.2 3.7 3.7 58.2 (26.2)
Top 10 Returns for 2009 (%)

Cpn (%) Maturity Date Dec 2009 (%) 2009 (%)
Chaparral Energy Inc 8.88 2/1/2017 0.5 399.6
Chaparral Energy Inc 8.50 12/1/2015 (0.1) 383.4
Delta Petroleum Corp 7.00 4/1/2015 3.7 291.4
Compton Petroleum Corp 7.63 12/1/2013 7.9 196.9
Southern Union Co 7.20 11/1/2011 3.7 191.3
Connacher Oil & Gas 10.25 12/15/2015 6.4 160.1
Dune Energy Inc 10.50 6/1/2012 6.5 148.3
Energy XXI Gulf Coast 10.00 6/15/2013 9.9 138.9
Venoco Inc 8.75 12/15/2011 0.0 130.8
Seitel Inc 9.75 2/15/2014 4.0 124.3
___________________________
Source: Barclays Capital US High Yield Index.
1. MTD returns are for February; QTD and YTD are through 3/15/10.
AND SYNDICATED LOAN
E&P Capex and F&D Drop 50%+ in 2009 CONFERENCE
CAPEX ($bn)
75
50.5 58.7 ↓51%
50
28.7
25
0
2007 2008 2009
CapEx, Ex-Acquisitions Acquisition CapEx
All-In Finding Costs ($/mcfe)
6
5.08
↓56%
4
2.71 2.22
2
0
2007 2008 2009
Source: Company reports, Barclays Capital.
AND SYNDICATED LOAN
Production Up 7% in 2009 CONFERENCE
Production (Tcfe)
8
6
5.1
4.8
4.1 7%
4
3.8
3.5
3.0
2
1.1 1.2 1.3

0
2007 2008 2009
Oil Production ↑3% Natural Gas Production ↑8%
AND SYNDICATED LOAN
Reserve Quality Diminishes CONFERENCE
Proved Reserves (Tcfe)

67.9
75
58.9 63.0
50
25
63% 79% 63%
0
2007 2008 2009
Proved Developed Reserves
Reserve Replacement
800%
457%
600%
400% 243%
254%
200%
181% 70% 28%
0%
2007 2008 2009
Acquisitions
New SEC Reserve Bookings – 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Inflating Proved Reserves? CONFERENCE
+ More liberal PUD booking rules for “offset” locations – affects shales
+ PUDs now booked as long as technology works in analogous reservoir
- PUD reserves now required to be produced within five years
+/- Average, not year-end, commodity prices used
Proved Reserves Pricing

2008
2009 Old New(1)
WTI Oil ($/bbl) 57.65 44.60 101.96
Henry Hub ($/mcf) 3.87 5.71 8.90
___________________________
Source: Netherland, Sewell.
1. Reflects pricing that would have been used in 2008 under new pricing guidelines.
AND SYNDICATED LOAN
We, Laurence Jollon, Michael Zenker, and Gary Stromberg, hereby certify (1) that the views expressed in this research report accurately reflect our personal views about any or all of the subject securities or
issuers referred to in this research report and (2) no part of our compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this research report.
Company-specific Disclosure:
Barclays Capital is acting as financial advisor to Dominion Resources in the potential sale of its Appalachian E&P business to CONSOL Energy. Barclays Capital also provided a fairness opinion to Dominion in
connection with this potential transaction.
For current important disclosures regarding companies that are the subject of this research report, please send a written request to: Barclays Capital Research Compliance, 745 Seventh Avenue, 17th Floor, New
York, NY 10019 or refer to https://ecommerce.barcap.com/research/cgi-bin/all/disclosuresSearch.pl or call 212-526-1072.
Overweight: Expected six-month total return of the sector exceeds the six-month expected total return of the Barclays Capital U.S. High Yield 2% Issuer Capped Credit Index, or the Pan-European High Yield 3%

The High Yield Research team employs a relative return based rating system that, depending on the company under analysis, may be applied to either some or all of the company's debt securities, bank loans, or
other instruments. Please review the latest report on a company to ascertain the application of the rating system to that company.
Market Weight: The analyst expects the six-month total return of the rated debt security or instrument to be in line with the six-month expected total return of the Barclays Capital U.S. 2% Issuer Capped High Yield
Underweight: The analyst expects the six-month total return of the rated debt security or instrument to be below the six-month expected total return of the Barclays Capital U.S. 2% Issuer Capped High Yield Credit
AND SYNDICATED LOAN
its affiliates.
Exchange.
10019.
Limited. Barclays Capital Japan Limited is a joint-stock company incorporated in Japan with registered office of 2-2-2, Otemachi, Chiyoda-ku, Tokyo 100-0004, Japan. It is a subsidiary of Barclays Bank PLC and
Gaming Industry Overview

Cyclical versus Secular Changes
John Kempf
March 2010
PLEASE SEE ANALYST CERTIFICATION AND IMPOrTANT DISCLOSURES STARTING AFTER PAGE 24
High Yield Gaming Industry Performance

AND SYNDICATED LOAN
Gaming Returns Remain Volatile CONFERENCE
HY Gaming Index Return

80% 5%
61% 4.0%
61% 58% 4%
60% 3.6%
3% 2.6%
40%
23% 2%
1.3%
18%
20% 14% 1%
6% 6% 6% 0.2%
0% 0%
(1%)
(20%)
(17%)
(2%)
(40%) (1.8%)
1Q 2Q 3Q 4Q Full (3%)
Year Jan Feb YTD
Gaming High Yield Gaming High Yield
Source:
Once Considered Safe, Gaming Now 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Trades Cheap to the HY Index CONFERENCE
Historical Spread – Gaming – HY Index

Historical Since June 2009
2,000 350
300
1,500
250
1,000
200
150
500
100
0
50
(500) 0
Jan- Jan- Feb- Feb- Mar- Jun- Aug- Oct- Jan- Mar-
2006 2007 2008 2009 2010 2009 2009 2009 2010 2010
Source:
AND SYNDICATED LOAN
Top 20 Contributors to Gaming Index CONFERENCE
Market Market Yield to Maturity

Value (%) Value Worst (%) (Years)
US HY Gaming (Statistics, Unhedged) 100.00 25,634,022 11.30 5.69
MGM 25.92 6,644,104 10.28 5.26
HET 24.41 6,258,191 13.44 7.83
WYNN 8.29 2,125,086 7.50 5.44
PNK 3.76 963,067 10.18 5.55
TRIBAL 3.57 914,575 13.95 4.34
SGMS 3.06 783,260 7.63 6.83
ASCA 2.67 683,240 8.37 4.24
BYD 2.34 600,752 10.65 4.35
PENN 2.21 566,766 8.28 7.55
PENGAM 2.06 529,219 10.47 6.58
SENECA 1.95 499,785 8.53 2.16
FIREKP 1.54 395,193 9.58 5.16
SHINGL 1.43 366,891 15.14 5.28
AMECAS 1.31 335,187 15.23 4.28
GALENT 1.20 308,795 8.02 2.78
POKAGO 1.18 302,186 8.40 4.28
ISLE 1.15 293,998 12.82 3.99
INDDWN 1.01 257,729 31.28 2.66
MNTG 0.99 253,327 13.94 4.37
MOTOR 0.98 251,133 14.48 3.41
___________________________
Gaming Industry Fundamentals

AND SYNDICATED LOAN
Gaming Industry Continues to Lag CONFERENCE
• Casino revenues remain negative despite easier comparisons

• More vacation-oriented leisure outperforming casinos – cruises, hotels, skiing
• Not giving up vacations, but fewer trips to the casino
• Average casino customer is 53 years old. Overall wealth is an important
determinant of casino spending
• Unemployment remains highly correlated to gaming revenues, particularly non-
rated play
• Spend per visit down more than visitation
• In Las Vegas, fewer groups and conventions affecting room rates
___________________________
Source: Barclays Capital, Market Metrix.
AND SYNDICATED LOAN
US Unemployment – December 2009 CONFERENCE
2009 Changes in Unemployment vs. 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Gaming Revenues CONFERENCE
Change in Gaming Revenues

10%
New casinos, favorable
regulatory changes IN
5%
CO MO
0%
IA MI
(5%)
LA CT
MS LV Locals
(10%)
IL
(15%)
NJ
(20%)
0% 1% 2% 3% 4% 5% 6%
Change in Unemployment
___________________________
Source: Bureau of Labor Statistics, State Gaming Commissions, Barclays Capital.
AND SYNDICATED LOAN
Las Vegas Strip Stabilizing CONFERENCE
40,000,000 $280
39,000,000 $270
38,000,000 $260
37,000,000 $250
36,000,000 $240
35,000,000 $230
34,000,000 $220
33,000,000 $210
32,000,000 $200
Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10
LTM Visitor Volume LTM Win per Visitor LTM Win per Visitor excl. Baccarat
___________________________
Source: Las Vegas Convention and Visitors Authority, Barclays Capital.
Las Vegas Strip – Conventions Drive 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Room Rates CONFERENCE
LTM Convention Attendance vs. RevPAR

7,000,000 $150
6,000,000 $130
5,000,000 $110
4,000,000 $90
3,000,000 $70
2,000,000 $50
Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10
Convention Attendance RevPAR

___________________________
Source: Las Vegas Convention and Visitors Authority, Barclays Capital.
Gaming Markets Appear to 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Have Bottomed CONFERENCE
• We expect casino spending to lag the economic rebound given its

discretionary nature
• For most regional and local markets, gaming revenues should improve as we
progress through 2010
• Starting to see some stabilization in revenue declines
• Employment is slowly growing, GDP improving
• Eastern and midwest regional markets will likely lead improvement
• Louisiana and Mississippi were last to go in to recession, and will slowly come out
• In Las Vegas, we expect group and convention market not to show significant
improvement in bookings until 2011. However, pricing will likely take longer
AND SYNDICATED LOAN
However, Regulatory Risk Remains CONFERENCE
• The gaming industry exists for one reason only: To fill the coffers of state
governments. This poses several risks:
• New states approving gaming adjacent to existing gaming markets
• Increases in existing tax rates
• Additional gaming licenses in existing states
• Therefore, any economic rebound may be offset by new supply and increased
gaming taxes. This threat is real, especially as states grapple with huge budget
deficits
AND SYNDICATED LOAN
Casinos Approved – Not Yet Opened CONFERENCE
State Comment Potential Impact

Kansas Four licenses awarded KC (HET, ASCA, Penn, Isle)
Maryland Five licenses approved, three have been E. Pennsylvania (HET)
awarded but not yet operating Atlantic City (HET, BYD, Trump)
W. VA. (Penn)
Illinois Des Plaines license awarded MGM, Penn, HET
New York Aqueduct to be awarded. State law allows for Atlantic City (HET, BYD, Trump)
expansion of tribal casinos Mohegan / Foxwoods
Ohio Four casinos approved West Virginia (MTR)

Pennsylvania (MTR)
Potential for legalization of slots at states
Southern Indiana (Penn, PNK)
racetracks
Detroit (MGM, MotorCity)
Pennsylvania Two casinos to open in Philadelphia Atlantic City (HET, BYD, Trump)
E. Pennsylvania (HET)
Source:
States with Existing Casinos 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Contemplating Expansion CONFERENCE

Delaware Bill introduced to allow two new casinos in E. PA (HET)
addition to existing three
Florida State negotiating compact with Seminole Tribe. Seminole Tribe, Isle of Capri
May result in new casinos, change in tax rates Gulf Coast, MS (MGM, Isle)
Illinois State legislature continues to look at various Illinois (Penn, HET, MGM, BYD)
new casino proposals to fill budget gap Indiana (HET, ASCA)
Indiana Relocate Majestic license, tables at Indiana (HET, ASCA, Penn,
two casinos PNK, BYD)
Iowa Legislature considering adding four Peninsula Gaming, Isle
new casinos
Michigan Gun Lake under construction MGM, Motor City,
Pokagon, Firekeeper’s
Group petitioning for eight new
commercial casinos
Missouri Rebid President Casino license PNK, ASCA, HET
New Jersey Slots at Meadowlands Atlantic City (HET, BYD, Trump)
PA (LVS)
Revel still under construction
NY (Yonkers)
Source:
AND SYNDICATED LOAN
States Exploring New Casinos CONFERENCE

Massachusetts Two proposals expected to be introduced this Mohegan, Foxwoods
spring. One would legalize three Vegas-style
casinos. The other would legalize two casinos
and slots at four racetracks
Kentucky Governor pushing slots, legislature offering Indiana (HET, ASCA, Penn, PNK)
watered-down lottery version
New Considering bills to legalize slots at racetracks Mohegan, Foxwoods

Hampshire
Alabama Governor attempting to shut down operations MS Gulf Coast (MGM, Isle)
of video lottery terminals; push bill to legalize
Texas Various bills have been introduced or LA (PNK, Isle, HET, BYD)
contemplated to allow full-scale gaming,
slots at racetracks, and/or tribal casinos
Internet Various states looking to legalize video online
Gaming poker. Two Senate bills to legalize
Source:
AND SYNDICATED LOAN
Summary of Legislative Risk CONFERENCE
• States continue to look hard at gaming as potential revenue source

• However, there still remains strong resistance to legalizing casinos
• Substantial hurdles delay impact and limit scope of new projects
• Lengthy delays due to writing legislation, choosing operators, obtaining
financing, and construction
• Availability of financing
• Potentially onerous tax rates
• Nevertheless, new supply will have an impact, particularly on highly levered
companies. Further, the threat of casino legislation will raise borrowing costs on
existing casino operators
AND SYNDICATED LOAN
Las Vegas New Supply CONFERENCE
Opening Hotel
Unit Supply Growth Y/Y Visitation Change
New Strip Supply Owner Date Rooms
12,000 25% 2008 Room Supply 140,529
M Resort Private Mar 390
10,000 20% Hard Rock Expansion Private July / Dec 865
Golden Nugget Private Nov 500
8,000 15%
CityCenter(1) MGM Dec 5,060
Planet Hollywood Harrah's Dec 1,201
6,000 10%
Other 396
Total 2009 Additions 8,412
4,000 5% 2009 Room Supply 148,941
2,000 0% Delayed Projects

The Cosmopolitan Private TBD 2,998
0 (5%) Caesars Expansion HET TBD 665
1990 1994 1998 2002 2006
The Harmon MGM TBD 400
(2,000) (10%)
Echelon BYD TBD 4,910
Unit Supply Growth Y/Y Visitation Change Fontainebleau Private TBD 3,812
___________________________ Total 12,785
1. Includes 664 of 1,495 rooms at Vdarra.
Source:
AND SYNDICATED LOAN
New Supply Impact on EBITDA CONFERENCE
MGM Las Vegas Properties Las Vegas Sands

Down 34% from
2,500 500 peak despite
Down 46.2% addition of Palazzo
2,000 from peak 400
1,500 300
1,000 200
500 100
0 0
2006 2007 2008 2009 2006 2007 2008 2009
Harrah’s Las Vegas Wynn Las Vegas

Down 42% from
1,400 500 peak despite
Down 35%
1,200 from peak 400
addition of Encore
1,000
800 300
600 200
400
200 100
0 0
2006 2007 2008 2009 2006 2007 2008 2009
Source:
AND SYNDICATED LOAN
Las Vegas Strip Will Recover Slowly CONFERENCE
• Majority of new supply at luxury end results in re-tiering of existing hotels

• Visitation will need to grow 4.4% just to maintain weak 2009 occupancy levels
• That amounts to 1.63mm more visitors
• Group and convention business declined by 1.36mm in 2009 and is expected to
be only slightly higher in 2010
• Thus, LV operators will need to target lower value leisure customer to fill rooms
• Pricing power does not return until group and convention attendance returns to
peak levels – adjust for new room supply
• Improvement could lead restart of stalled projects (Caesars Tower, Fontainebleu)
Recommendations
AND SYNDICATED LOAN
Recommendations CONFERENCE
• MGM senior unsecured notes – Overweight

• Should benefit from liquidity-enhancing actions
• Solid recovery value limits downside
• Harrah’s first liens – Market Weight
• Collateral provides sufficient coverage
• 150–200bp cheap to other gaming secured notes
• Given uncertain fundamentals, recommend investors stick with more conservative
names with solid balance sheets
• Ameristar senior unsecured notes
• Penn National senior subordinated notes
AND SYNDICATED LOAN
Contacts CONFERENCE
High Yield Research High Yield Research

John Kempf Andrew Brophy
+1 212 412 6833 +1 212 412 3084
John.kempf@barcap.com Andrew.brophy@barcap.com
Disclaimer
AND SYNDICATED LOAN
Important Disclosures CONFERENCE
•Analyst Certification(s)
•I, John Kempf, hereby certify (1) that the views expressed in this research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in this research report and (2) no part of my compensation was, is
or will be directly or indirectly related to the specific recommendations or views expressed in this research report.
•Important Disclosures
•For current important disclosures regarding companies that are the subject of this research report, please send a written request to: Barclays Capital Research Compliance, 745 Seventh Avenue, 17th Floor, New York, NY 10019 or refer to
https://ecommerce.barcap.com/research/cgi-bin/all/disclosuresSearch.pl or call 212-526-1072.
•Barclays Capital does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that Barclays Capital may have a conflict of interest that could affect the objectivity of this report. Any reference
to Barclays Capital includes its affiliates. Barclays Capital and/or an affiliate thereof (the "firm") regularly trades, generally deals as principal and generally provides liquidity (as market maker or otherwise) in the debt securities that are the subject of
this research report (and related derivatives thereof). The firm's proprietary trading accounts may have either a long and / or short position in such securities and / or derivative instruments, which may pose a conflict with the interests of investing
customers. Where permitted and subject to appropriate information barrier restrictions, the firm's fixed income research analysts regularly interact with its trading desk personnel to determine current prices of fixed income securities. The firm's
fixed income research analyst(s) receive compensation based on various factors including, but not limited to, the quality of their work, the overall performance of the firm (including the profitability of the investment banking department), the
profitability and revenues of the Fixed Income Division and the outstanding principal amount and trading value of, the profitability of, and the potential interest of the firms investing clients in research with respect to, the asset class covered by the
analyst. To the extent that any historical pricing information was obtained from Barclays Capital trading desks, the firm makes no representation that it is accurate or complete. All levels, prices and spreads are historical and do not represent
current market levels, prices or spreads, some or all of which may have changed since the publication of this document. Barclays Capital produces a variety of research products including, but not limited to, fundamental analysis, equity-linked
analysis, quantitative analysis, and trade ideas. Recommendations contained in one type of research product may differ from recommendations contained in other types of research products, whether as a result of differing time horizons,
methodologies, or otherwise.
•Explanation of the High Yield Sector Weighting System

•Overweight: Expected six-month total return of the sector exceeds the six-month expected total return of the Barclays Capital U.S. High Yield 2% Issuer Capped Credit Index, or the Pan-European High Yield 3% Issuer Capped Credit Index
excluding Financials, as applicable.
•Market Weight: Expected six-month total return of the sector is in line with the six-month expected total return of the Barclays Capital U.S. High Yield 2% Issuer Capped Credit Index or the Pan-European High Yield 3% Issuer Capped Credit Index
•Underweight: Expected six-month total return of the sector is below the six-month expected total return of the Barclays Capital U.S. High Yield 2% Issuer Capped Credit Index or the Pan-European High Yield 3% Issuer Capped Credit Index
•Explanation of the High Yield Research Rating System

•The High Yield Research team employs a relative return based rating system that, depending on the company under analysis, may be applied to either some or all of the company's debt securities, bank loans, or other instruments. Please review
the latest report on a company to ascertain the application of the rating system to that company.
•Overweight: The analyst expects the six-month total return of the rated debt security or instrument to exceed the six-month expected total return of the Barclays Capital U.S. 2% Issuer Capped High Yield Credit Index, the Pan-European High Yield
3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as applicable.
•Market Weight: The analyst expects the six-month total return of the rated debt security or instrument to be in line with the six-month expected total return of the Barclays Capital U.S. 2% Issuer Capped High Yield Credit Index, the Pan-European
High Yield 3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as applicable.
•Underweight: The analyst expects the six-month total return of the rated debt security or instrument to be below the six-month expected total return of the Barclays Capital U.S. 2% Issuer Capped High Yield Credit Index, the Pan-European High
Yield 3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as applicable.
•Not Rated (NR): An issuer which has not been assigned a formal rating.
•Rating Suspended (RS): The rating has been suspended temporarily due to market events that make coverage impracticable or to comply with applicable regulations and/or firm policies in certain circumstances including where Barclays Capital
is acting in an advisory capacity in a merger or strategic transaction involving the company.
AND SYNDICATED LOAN
CONFERENCE
• This publication has been prepared by Barclays Capital, the investment banking division of Barclays Bank PLC, and/or one or more of its affiliates as provided below. This publication is provided to you for
manager or underwriter of a public offering or otherwise, in the capacity of principal or agent, deal in, hold or act as market-makers or advisors, brokers or commercial and/or investment bankers in relation to
the securities or related derivatives which are the subject of this publication.
• The analyst recommendations in this report reflect solely and exclusively those of the author(s), and such opinions were prepared independently of any other interests, including those of Barclays Capital and/or
its affiliates.
• Neither Barclays Capital, nor any affiliate, nor any of their respective officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from any use of this
• This communication is being made available in the UK and Europe to persons who are investment professionals as that term is defined in Article 19 of the Financial Services and Markets Act 2000 (Financial
available only to such persons and will be entered into only with such persons. Barclays Capital is authorized and regulated by the Financial Services Authority ('FSA') and member of the London Stock Exchange.
• Barclays Capital Inc., US registered broker/dealer and member of FINRA (www.finra.org), is distributing this material in the United States and, in connection therewith accepts responsibility for its contents. Any
U.S. person wishing to effect a transaction in any security discussed herein should do so only by contacting a representative of Barclays Capital Inc. in the U.S. at 745 Seventh Avenue, New York, New York 10019.
• Subject to the conditions of this publication as set out above, Absa Capital, the Investment Banking Division of Absa Bank Limited, an authorised financial services provider (Registration No.: 1986/004794/06), is
• Non-U.S. persons should contact and execute transactions through a Barclays Bank PLC branch or affiliate in their home jurisdiction unless local regulations permit otherwise.
• In Japan, foreign exchange research reports are prepared and distributed by Barclays Bank PLC Tokyo Branch. Other research reports are distributed to institutional investors in Japan by Barclays Capital Japan
Limited. Barclays Capital Japan Limited is a joint-stock company incorporated in Japan with registered office of 2-2-2, Otemachi, Chiyoda-ku, Tokyo 100-0004, Japan. It is a subsidiary of Barclays Bank PLC and a
registered financial instruments firm regulated by the Financial Services Agency of Japan. Registered Number: Kanto Zaimukyokucho (kinsho) No. 143.
• Barclays Bank PLC Frankfurt Branch is distributing this material in Germany under the supervision of Bundesanstalt fuer Finanzdienstleistungsaufsicht (BaFin). This material is distributed in Malaysia by Barclays
Capital Markets Malaysia Sdn Bhd.
• IRS Circular 230 Prepared Materials Disclaimer: Barclays Capital and its affiliates do not provide tax advice and nothing contained herein should be construed to be tax advice. Please be advised that any
written to support the promotion or marketing of the transactions or other matters addressed herein. Accordingly, you should seek advice based on your particular circumstances from an independent tax
advisor.
• © Copyright Barclays Bank PLC (2010). All rights reserved. No part of this publication may be reproduced in any manner without the prior written permission of Barclays Capital or any of its affiliates.
Barclays Bank PLC is registered in England No. 1026167. Registered office 1 Churchill Place, London, E14 5HP. Additional information regarding this publication will be furnished upon request.
Retail – Outlook & Trading Trends

March 25, 2010
Research Analysts / Authors

Emily E. Shanks
Gordon McKemie
Matt Leach
High Yield Retail

AND SYNDICATED LOAN
High Yield Retail CONFERENCE

Emily E. Shanks
+1 212 412 1355
emily.shanks@barcap.com
Gordon McKemie
+1 212 412 1199
gordon.mckemie@barcap.com
Matt Leach
+1 212 412 7526
matt.leach@barcap.com
Industry Fundamentals – 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Consumer Spending Outlook CONFERENCE
Cautious Consumer Outlook – Stabilization at Low Levels

• Fatigued consumer facing net negative fundamentals • “Ability to spend” pressured
• “Willingness to spend” depressed • Job market poor
• Confidence 46.0,(1) vs. 1990s low of 47.3 (2/29/92) • Housing market malaise driving negative wealth effect
• Sentiment 73.6,(1) recessionary-type levels • Gas prices up +44.7%(2) y/y
• Savings rate at +3.3%,(3) above 3yr avg of +2.9%
• Real disposable income growth negligible
• Stabilization Signs • Financial markets rebound
• Unemployment rate deterioration abating • Credit lending standards’ tightening magnitude abating
Consumer Headwinds
Real Disposable % of Banks Revolving Credit
MSFT Dividend
Unemployment % Income % y/y % y/y
11.0 6.0 80.0 40.0
9.0 5.0 60.0 30.0
7.0 4.0
3.0 40.0 20.0
5.0
2.0 20.0 10.0
3.0
1.0
1.0 0.0 0.0 0.0
(1.0) (1.0)(20.0)
Hurricane Katrina (10.0)
(3.0) (2.0) Jan-98 Jan-01 Jan-04 Jan-07 Jan-10
Jan-01 Jan-03 Jan-05 Jan-07 Jan-09
Consumer Revolving Credit, YoY
Real Disposible Income % y/y Unemployment % % Banks Reporting Tighter Lending Standards for Credit Cards
___________________________
Source: BEA, BLS, Federal Reserve. 1. As of February 28, 2010. 2. As of March 15, 2010. 3. As of January 31, 2010.
Industry Fundamentals – 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Retail, Supermarket Sector Outlooks CONFERENCE
Restrained Outlook
• FY09 Retail Index return stunning +82.73% (best year since 1990, 4th best sector) vs. overall HY Index at +58.21%
• Aggressive balance sheet management, coupled with strong primary market, aided highly leveraged retailers
Retail
• Sales expectations mixed / mediocre
• Low, but stable
• Pockets of strength include luxury
• Spring selling season preliminary outlook constructive
• Balance sheet management strong
• Inventories down notably y/y, commensurate with demand
• Margin improvement potential limited
• Gross margin, SG&A improvement potential 1H10, limited 2H10
Supermarkets
• Sales pressured
• Price competition intense (irrational?)
• Food deflation (abate 2H10?)
• Margin pressure
• Cost saves may not offset gross margin declines
WHERE DOES ONE FIND YIELD IN FY10?

High Yield Retail Sector – 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Recommendation CONFERENCE
Market Weight High Yield Retail Sector

Fundamental Focus
• Qualitative metrics focus
• Best-in-class operators, franchise value (brand, market share, customer connectivity), target customer, product
offering
• Credit statistics focus
• Free cash flow (quantity, use), debt reduction goals
• Credit-specific positive catalysts
• Capital structure changes, expected sales / margin outperformance vs. other formats / competitors
Technicals Quarterly HY Retail Index Excess Returns (%)

1Q 2Q 3Q 4Q
Issuer % of Index Market Value ($mn) 2009 7.74 38.34 13.13 9.39
2008 (6.86) 4.20 (11.62) (28.67)
Macy's 21.68 7,353.0 2007 2.76 (0.33) (5.86) (8.18)
Rite Aid 10.31 3,496.7 2006 3.64 1.71 0.05 4.69
2005 (3.35) 0.86 1.49 (0.16)
Toys "R" Us 9.20 3,120.3 2004 0.10 1.67 (0.47) 1.82
J.C. Penney 8.85 3,001.6 2003 5.24 4.17 4.50 6.21
2002 2.05 (1.07) (6.68) 5.37
Limited Brands 7.35 2,492.8 2001 11.54 10.35 (6.37) 9.12
Dollar General 4.70 1,594.1 2000 (6.12) (1.34) (2.39) (8.97)
1999 2.66 1.71 (2.92) (2.11)
Total Market Value 62.09 21,058.4 1998 2.52 0.53 (12.87) 1.77
1997 4.56 0.67 1.21 (2.79)
1996 5.69 4.12 (0.94) 0.76
___________________________ 1995 (1.50) (6.49) 1.17 (5.06)
Source: Barclays Capital 1994 2.01 3.93 2.20 (1.43)
High Yield Retail Picks – 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Top FY10 Recommendations CONFERENCE
General Nutrition Centers (GNC)

• Attractive market share, demographics (aging baby boomers), manufacturing capabilities
• Positive operating trends in consumer-driven recession (FY09 sales +3.0% y/y, comps +2.8%, EBITDA +7.4% y/y)
• Solid FCF (+7.8% of debt FY10 E), rent-adjusted net leverage 5.7x (FY10 E) down -0.3x from FY09, -0.7x from FY08
• Market Weight GNC term loan; Overweight GNC seniors and senior subs
Neiman Marcus (NMG)

• Best-in-class operator, conservative management team
• Prudent balance sheet management CY09 (inventories reduced to meet sales, ABL refi done, liquidity cushion)
• Luxury consumer bottoming => Top line stabilization (Dec 09 = 1st +comp since May 08, highest comp since Nov 07)
• Ample liquidity (excess cash @ $501mm 2Q10-end, undrawn ABL), FY10 E +45.9% y/y EBITDA, FCF +5.4% of debt
• Market Weight NMG term loan; Overweight NMG seniors and senior subs
Yankee Candle (YCC)
• Vertically integrated, multi-distribution platform; conservative, strong management team
• Expect challenging environment (mall traffic exposure, gifting item), offset in part by full yr of TGT Wholesale contract
• ~50% of EBITDA produced in 4Q
• Solid FCF (FY10 E +7.7% of debt based on +5.1% y/y EBITDA)
• Market Weight YCC term loan; Overweight YCC seniors and senior subs
AND SYNDICATED LOAN
Amend & Extend / Refi Candidates CONFERENCE
MIK(1) NMG(2)
Bank Debt Tranche ABL RC(4) TL B1 TL B2 Bank Debt Tranche ABL RC TL
Coupon L+(100-150) L+(300-375) L+225 L+450 Coupon L+425 L+200
Maturity 1/15/2013 4/6/2013
Maturity 10/31/2011 4/15/2014 10/31/2013 7/31/2016
Total Commitment (mn) $600.0
Total Commitment (mn) $202.0 $950.0
Amount Out. (mn) $114.0 $1,280.0 $1,000.0 Amount Out. (mn) $0.0 $1,598.4
Covenants Lite (5) Lite (5) No No Covenants Lite(5) No
SBH(3) SHLD(2)
Bank Debt Tranche ABL RC TL A TL B Bank Debt Tranche ABL RC
Coupon L+(100-150) L+(200-250) L+(225-250) Coupon L+87.5 L+400
Maturity 11/16/2011 11/16/2012 11/16/2013 Maturity 6/2/2011 6/22/2012
Total Commitment (mn) $400.0 Total Commitment (mn) $1,682.4 $2,436.2
Amount Out. (mn) $0.0 $105.0 $863.9 Amount Out. (mn) $119.0
Covenants Lite(5) Yes Yes Covenants Lite(5)
___________________________
1. As of 10/31/09. 2. As of 1/30/10. 3. As of 12/31/09.
4. ABL reflects amend and extend effective 2/18/10.
5. Denotes covenant-lite facility that has a minimum excess availability covenant.
Source: Company reports, Barclays Capital estimates
AND SYNDICATED LOAN
Amend & Extend / Refi Candidates CONFERENCE
SKS(1)
Debt Issue Sr. Notes Sr. Notes ABL RC Sr. Notes Converts
Coupon 7.50% 9.875% L+(350-400) 7.00% 7.50%
Maturity 12/1/2010 10/1/2011 11/22/2013 12/1/2013 12/1/2013
Total Commitment (mn) $500.0
Amount Out. (mn) $22.9 $141.6 $0.0 $2.9 $120.0
Covenants Lite(4)
SVU(2) TOY(3)
Bank Debt Tranche RC TL A TL B Bank Debt Tranche Del ABL RC Del TL
Coupon L+100 L+87.5 L+125 Coupon L+(100-200) L+(375-425) L+425
Maturity 6/2/2011 6/2/2011 6/2/2012 Maturity 7/21/2010 5/21/2012 7/19/2012
Total Commitment (mn) $2,000.0 Total Commitment (mn) $517.0 $1,631.0
Amount Out. (mn) $246.0 $422.0 $1,108.0 Amount Out. (mn) $419.0 $798.0
Covenants Yes Yes Yes Covenants No No
___________________________
1. As of 1/30/10. 2. As of 12/5/09. 3. As of 10/31/09.
4. Denotes covenant-lite facility that has a minimum excess availability covenant.
Source: Company reports, Barclays Capital estimates
High Yield Supermarkets – 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Recommendation & Picks CONFERENCE
Market Weight High Yield Supermarket Sector

• Significant technicals, five constituents compose 100% of Supermarket Index
Sector Recommendation Market Weight
Company Recommendation
Market Value
Ingles Markets, Inc
Issuer % of Index ($mn)
8.875% Senior Notes due 2017 Underweight
SUPERVALU 64.49 3 ,752.0 Stater Brothers Holdings, Inc
8.125% Senior Notes due 2012 Market Weight
Stater Bros 14.29 831.4
7.75% Senior Notes due 2015 Market Weight
Ingles Markets 10.44 607.4 SUPERVALU, Inc
Tops Markets 6.45 375.3 Term Loan Market Weight
7.5% SVU Senior Notes due 2014 Market Weight
The Great Atlantic & Pacific Tea Co. 4.33 251.9 7.25% ABS Senior Notes due 2013 Market Weight
Total Market Value 100.00 5 ,818.0 8% Amer. Stores Senior Notes due 2026 Market Weight
SUPERVALU (SVU)
• Industry fundamentals are weak
• Comparable-store sales growth expected to be negative, expect SVU to lag competitors
• Soft top line, with intensified price competition likely to weigh on EBITDA
• Rolling out strategic initiatives (execution and timing in question)
• Solid balance sheet management (FY11 E 4.0x rent-adjusted net leverage)
• Solid FCF characteristics (FY10 E +6.5% to debt, FY11 E +6.1% to debt)
• Commitment to annual debt reduction, return to IG
• Favor American Stores (ASC), New Albertson’s (ABS) bonds over SVU bonds
___________________________
Source: Barclays Capital
Analyst Certification and 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
I, Emily Shanks, hereby certify (1) that the views expressed in this research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in this
Avenue, 17th Floor, New York, NY 10019 or refer to https://ecommerce.barcap.com/research/cgi-bin/all/disclosuresSearch.pl or call 212-526-1072.
Barclays Capital does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that Barclays Capital may have a conflict of interest that
could affect the objectivity of this report. Any reference to Barclays Capital includes its affiliates. Barclays Capital and/or an affiliate thereof (the "firm") regularly trades, generally deals as
principal and generally provides liquidity (as market maker or otherwise) in the debt securities that are the subject of this research report (and related derivatives thereof). The firm's proprietary
trading accounts may have either a long and / or short position in such securities and / or derivative instruments, which may pose a conflict with the interests of investing customers. Where
permitted and subject to appropriate information barrier restrictions, the firm's fixed income research analysts regularly interact with its trading desk personnel to determine current prices of
fixed income securities. The firm's fixed income research analyst(s) receive compensation based on various factors including, but not limited to, the quality of their work, the overall
performance of the firm (including the profitability of the investment banking department), the profitability and revenues of the Fixed Income Division and the outstanding principal amount
and trading value of, the profitability of, and the potential interest of the firms investing clients in research with respect to, the asset class covered by the analyst. To the extent that any
historical pricing information was obtained from Barclays Capital trading desks, the firm makes no representation that it is accurate or complete. All levels, prices and spreads are historical and
do not represent current market levels, prices or spreads, some or all of which may have changed since the publication of this document. Barclays Capital produces a variety of research
products including, but not limited to, fundamental analysis, equity-linked analysis, quantitative analysis, and trade ideas. Recommendations contained in one type of research product may
differ from recommendations contained in other types of research products, whether as a result of differing time horizons, methodologies, or otherwise.
AND SYNDICATED LOAN
Rating System Explanation CONFERENCE
Explanation of the High Grade Sector Weighting System

Overweight: Expected six-month excess return of the sector exceeds the six-month expected excess return of the Barclays Capital U.S. Credit Index or Pan-European Credit Index, as applicable.
Market Weight: Expected six-month excess return of the sector is in line with the six-month expected excess return of the Barclays Capital U.S. Credit Index or Pan-European Credit Index, as
applicable.
Underweight: Expected six-month excess return of the sector is below the six-month expected excess return of the Barclays Capital U.S. Credit Index or Pan-European Credit Index, as
applicable.
Explanation of the High Grade Research Rating System
The High Grade Research rating system is based on the analyst's view of the expected excess returns over a six-month period of the issuer's index-eligible corporate debt securities to the
Barclays Capital U.S. Credit Index, the Pan-European Credit Index or the EM Asia USD High Grade Credit Index, as applicable.
Overweight: The analyst expects the issuer's index-eligible corporate bonds to provide positive excess returns relative to the Barclays Capital U.S. Credit Index, the Pan-European Credit Index,
or the EM Asia USD High Grade Credit Index over the next six months.
Market Weight: The analyst expects the issuer's index-eligible corporate bonds to provide excess returns in line with the Barclays Capital U.S. Credit Index, the Pan-European Credit Index, or
the EM Asia USD High Grade Credit Index over the next six months.
Underweight: The analyst expects the issuer's index-eligible corporate bonds to provide negative excess returns relative to the Barclays Capital U.S. Credit Index, the Pan-European Credit Index,
For Japan and Australia issuers, the ratings are relative to the Barclays Capital U.S. Credit Index or Pan-European Credit Index, as applicable.
Overweight: The analyst expects the six-month total return of the rated debt security or instrument to exceed the six-month expected total return of the Barclays Capital U.S. 2% Issuer Capped
High Yield Credit Index, the Pan-European High Yield 3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as applicable.
Issuer Capped High Yield Credit Index, the Pan-European High Yield 3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as applicable.
AND SYNDICATED LOAN
This publication has been prepared by Barclays Capital, the investment banking division of Barclays Bank PLC, and/or one or more of its affiliates as provided below. This publication is provided to you for information
purposes only. Prices shown in this publication are indicative and Barclays Capital is not offering to buy or sell or soliciting offers to buy or sell any financial instrument. Other than disclosures relating to Barclays
Capital, the information contained in this publication has been obtained from sources that Barclays Capital believes to be reliable, but Barclays Capital does not represent or warrant that it is accurate or complete. The
views in this publication are those of Barclays Capital and are subject to change, and Barclays Capital has no obligation to update its opinions or the information in this publication. Barclays Capital and its affiliates and
their respective officers, directors, partners and employees, including persons involved in the preparation or issuance of this document, may from time to time act as manager, co-manager or underwriter of a public
offering or otherwise, in the capacity of principal or agent, deal in, hold or act as market-makers or advisors, brokers or commercial and/or investment bankers in relation to the securities or related derivatives which
are the subject of this publication.
The analyst recommendations in this report reflect solely and exclusively those of the author(s), and such opinions were prepared independently of any other interests, including those of Barclays Capital and/or its
affiliates.
discussed in this publication and consult any independent advisors they believe necessary. The value of and income from any investment may fluctuate from day to day as a result of changes in relevant economic
markets (including changes in market liquidity). The information in this publication is not intended to predict actual results, which may differ substantially from those reflected. Past performance is not necessarily
indicative of future results.
This communication is being made available in the UK and Europe to persons who are investment professionals as that term is defined in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion
Order) 2005. It is directed at, and therefore should only be relied upon by, persons who have professional experience in matters relating to investments. The investments to which it relates are available only to such
persons and will be entered into only with such persons. Barclays Capital is authorized and regulated by the Financial Services Authority ('FSA') and member of the London Stock Exchange.
Barclays Capital Inc., US registered broker/dealer and member of FINRA (www.finra.org), is distributing this material in the United States and, in connection therewith accepts responsibility for its contents. Any U.S.
person wishing to effect a transaction in any security discussed herein should do so only by contacting a representative of Barclays Capital Inc. in the U.S. at 745 Seventh Avenue, New York, New York 10019.
African) Financial Advisory and Intermediary Services Act, 37 of 2002, or any other financial, investment, trading, tax, legal, accounting, retirement, actuarial or other professional advice or service whatsoever. Any
South African person or entity wishing to effect a transaction in any security discussed herein should do so only by contacting a representative of Absa Capital in South Africa, 15 Alice Lane, Sandton, Johannesburg,
Gauteng 2196. Absa Capital is an affiliate of Barclays Capital.
In Japan, foreign exchange research reports are prepared and distributed by Barclays Bank PLC Tokyo Branch. Other research reports are distributed to institutional investors in Japan by Barclays Capital Japan Limited.
Barclays Capital Japan Limited is a joint-stock company incorporated in Japan with registered office of 2-2-2, Otemachi, Chiyoda-ku, Tokyo 100-0004, Japan. It is a subsidiary of Barclays Bank PLC and a registered
financial instruments firm regulated by the Financial Services Agency of Japan. Registered Number: Kanto Zaimukyokucho (kinsho) No. 143.
Barclays Bank PLC Frankfurt Branch is distributing this material in Germany under the supervision of Bundesanstalt fuer Finanzdienstleistungsaufsicht (BaFin). This material is distributed in Malaysia by Barclays
IRS Circular 230 Prepared Materials Disclaimer: Barclays Capital and its affiliates do not provide tax advice and nothing contained herein should be construed to be tax advice. Please be advised that any discussion of
U.S. tax matters contained herein (including any attachments) (i) is not intended or written to be used, and cannot be used, by you for the purpose of avoiding U.S. tax-related penalties; and (ii) was written to support
the promotion or marketing of the transactions or other matters addressed herein. Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.
© Copyright Barclays Bank PLC (2010). All rights reserved. No part of this publication may be reproduced in any manner without the prior written permission of Barclays Capital or any of its affiliates. Barclays Bank
PLC is registered in England No. 1026167. Registered office 1 Churchill Place, London, E14 5HP. Additional information regarding this publication will be furnished upon request.
Services – Outlook & Trading Trends

March 25, 2010

Emily E. Shanks
Gordon McKemie
Matt Leach
High Yield Services

AND SYNDICATED LOAN
High Yield Services CONFERENCE

Emily E. Shanks
+1 212 412 1355
emily.shanks@barcap.com
Gordon McKemie
+1 212 412 1199
gordon.mckemie@barcap.com
Matt Leach
+1 212 412 7526
matt.leach@barcap.com
AND SYNDICATED LOAN
Services Defined CONFERENCE
Broad Universe
Our definition of Services includes:
• Car Rental
(Transportation Index; CAR, HTZ)
• Deathcare
(Consumer Cyclical Index; CSV, SCI, STEI)
• Equipment Rental
(Construction Machinery Index; AHERN, AHTLN, RSC, URI)
• Private Corrections
(Consumer Cyclical Index; CXW, CRN, GEO)
• Waste
(Environmental Index; RSG/AW, CSWT, WCAA, WSII)
• Asset Lite
(Consumer Cyclical Index; REALOG, SVM, WSTC)
AND SYNDICATED LOAN
Services Outlook CONFERENCE
FY10 Outlook
• Car Rental – Strong industry fundamentals provide pricing power
• Robust used car market => residual value support => better fleet control
• Competitors exercising disciplined fleet management
• Deathcare – Largely defensive, slow growth
• M&A activity, provides leverage
• Equipment Rental – Negative non-residential construction outlook
• Trough timing
• Favor operators with relatively low leverage, geographic and fleet diversity, and young fleet
• Private Corrections – Strong industry fundamentals
• Supply / demand outlook remains attractive
• Focus on greenfield facility build
• Waste – Operators well positioned, pricing remains rational
• Expect further consolidation (M&A)
• Asset Lite – Myriad of industries
• Focus contract, customer and revenue stream diversity, as well as customer / contract “sticky-ness”
AND SYNDICATED LOAN
Services Recommendations CONFERENCE
Defensive Stance
• Focus on industry drivers, economic insulation
Prisons
Deathcare
Waste
Car Rental
Equipment Rental
Countercyclical Less Defensive
• Focus on credit fundamentals

• Free cash flow generation ability, use of free cash flow
• Liquidity evaluation
• Favor best-in-class operators, secured part of capital structure
AND SYNDICATED LOAN
Services Picks CONFERENCE
Equipment Rental – Favor RRR 1st Lien Senior Notes

• Cautious industry outlook with non-residential construction growth negative (-19.9% as of 1/31/2010)
• Equipment rental historically lags given later cycle nature (1.5–2.0yrs)
• Equipment rental prior cycle 9–10yr expansion, current cycle 6yr expansion, now contracting
• Conditions different than last cycle
• Consumer driven recession, credit market dislocation, housing mkt malaise, corporate “status,” fleet mgmt
• Advocate defensive stance. Focus includes:
• Best-in-class operators
• Fleet age, diversity
• Leverage / free cash flow
• Senior part of capital structure, convergence trades, pairs trades
Nonresidential Construction Monthly Spending
(% Change y/y) ($ mm)
36% $475,000
27% $425,000
18% $375,000
9% $325,000
0% $275,000
(9%) $225,000
(18%) $175,000
(27%) $125,000
Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10
Monthly Spending y/y % Change

___________________________
Source: US Census Bureau
HY Custom Index – 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
Equipment Rental OAS vs. US HY Index CONFERENCE
bps
2,000
1,700
1,400
1,100
800
500
Jan-09 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10
US Corporate HY Index HY Custom Index – Equipment Rental
___________________________
Analyst Certification and 2010 HIGH YIELD BOND
AND SYNDICATED LOAN
I, Emily Shanks, hereby certify (1) that the views expressed in this research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in this
Avenue, 17th Floor, New York, NY 10019 or refer to https://ecommerce.barcap.com/research/cgi-bin/all/disclosuresSearch.pl or call 212-526-1072.
Barclays Capital does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that Barclays Capital may have a conflict of interest that
could affect the objectivity of this report. Any reference to Barclays Capital includes its affiliates. Barclays Capital and/or an affiliate thereof (the "firm") regularly trades, generally deals as
principal and generally provides liquidity (as market maker or otherwise) in the debt securities that are the subject of this research report (and related derivatives thereof). The firm's proprietary
trading accounts may have either a long and / or short position in such securities and / or derivative instruments, which may pose a conflict with the interests of investing customers. Where
permitted and subject to appropriate information barrier restrictions, the firm's fixed income research analysts regularly interact with its trading desk personnel to determine current prices of
fixed income securities. The firm's fixed income research analyst(s) receive compensation based on various factors including, but not limited to, the quality of their work, the overall
performance of the firm (including the profitability of the investment banking department), the profitability and revenues of the Fixed Income Division and the outstanding principal amount
and trading value of, the profitability of, and the potential interest of the firms investing clients in research with respect to, the asset class covered by the analyst. To the extent that any
historical pricing information was obtained from Barclays Capital trading desks, the firm makes no representation that it is accurate or complete. All levels, prices and spreads are historical and
do not represent current market levels, prices or spreads, some or all of which may have changed since the publication of this document. Barclays Capital produces a variety of research
products including, but not limited to, fundamental analysis, equity-linked analysis, quantitative analysis, and trade ideas. Recommendations contained in one type of research product may
differ from recommendations contained in other types of research products, whether as a result of differing time horizons, methodologies, or otherwise.
AND SYNDICATED LOAN
Rating System Explanation CONFERENCE
Explanation of the High Grade Sector Weighting System

Overweight: Expected six-month excess return of the sector exceeds the six-month expected excess return of the Barclays Capital U.S. Credit Index or Pan-European Credit Index, as applicable.
Market Weight: Expected six-month excess return of the sector is in line with the six-month expected excess return of the Barclays Capital U.S. Credit Index or Pan-European Credit Index, as
applicable.
Underweight: Expected six-month excess return of the sector is below the six-month expected excess return of the Barclays Capital U.S. Credit Index or Pan-European Credit Index, as
applicable.
Explanation of the High Grade Research Rating System
The High Grade Research rating system is based on the analyst's view of the expected excess returns over a six-month period of the issuer's index-eligible corporate debt securities to the
Barclays Capital U.S. Credit Index, the Pan-European Credit Index or the EM Asia USD High Grade Credit Index, as applicable.
Overweight: The analyst expects the issuer's index-eligible corporate bonds to provide positive excess returns relative to the Barclays Capital U.S. Credit Index, the Pan-European Credit Index,
Market Weight: The analyst expects the issuer's index-eligible corporate bonds to provide excess returns in line with the Barclays Capital U.S. Credit Index, the Pan-European Credit Index, or
the EM Asia USD High Grade Credit Index over the next six months.
Underweight: The analyst expects the issuer's index-eligible corporate bonds to provide negative excess returns relative to the Barclays Capital U.S. Credit Index, the Pan-European Credit Index,
For Japan and Australia issuers, the ratings are relative to the Barclays Capital U.S. Credit Index or Pan-European Credit Index, as applicable.
Overweight: The analyst expects the six-month total return of the rated debt security or instrument to exceed the six-month expected total return of the Barclays Capital U.S. 2% Issuer Capped
High Yield Credit Index, the Pan-European High Yield 3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as applicable.
Issuer Capped High Yield Credit Index, the Pan-European High Yield 3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as applicable.
AND SYNDICATED LOAN
This publication has been prepared by Barclays Capital, the investment banking division of Barclays Bank PLC, and/or one or more of its affiliates as provided below. This publication is provided to you for information
purposes only. Prices shown in this publication are indicative and Barclays Capital is not offering to buy or sell or soliciting offers to buy or sell any financial instrument. Other than disclosures relating to Barclays
Capital, the information contained in this publication has been obtained from sources that Barclays Capital believes to be reliable, but Barclays Capital does not represent or warrant that it is accurate or complete. The
views in this publication are those of Barclays Capital and are subject to change, and Barclays Capital has no obligation to update its opinions or the information in this publication. Barclays Capital and its affiliates and
their respective officers, directors, partners and employees, including persons involved in the preparation or issuance of this document, may from time to time act as manager, co-manager or underwriter of a public
offering or otherwise, in the capacity of principal or agent, deal in, hold or act as market-makers or advisors, brokers or commercial and/or investment bankers in relation to the securities or related derivatives which
are the subject of this publication.
The analyst recommendations in this report reflect solely and exclusively those of the author(s), and such opinions were prepared independently of any other interests, including those of Barclays Capital and/or its
affiliates.
discussed in this publication and consult any independent advisors they believe necessary. The value of and income from any investment may fluctuate from day to day as a result of changes in relevant economic
markets (including changes in market liquidity). The information in this publication is not intended to predict actual results, which may differ substantially from those reflected. Past performance is not necessarily
indicative of future results.
This communication is being made available in the UK and Europe to persons who are investment professionals as that term is defined in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion
Order) 2005. It is directed at, and therefore should only be relied upon by, persons who have professional experience in matters relating to investments. The investments to which it relates are available only to such
persons and will be entered into only with such persons. Barclays Capital is authorized and regulated by the Financial Services Authority ('FSA') and member of the London Stock Exchange.
Barclays Capital Inc., US registered broker/dealer and member of FINRA (www.finra.org), is distributing this material in the United States and, in connection therewith accepts responsibility for its contents. Any U.S.
person wishing to effect a transaction in any security discussed herein should do so only by contacting a representative of Barclays Capital Inc. in the U.S. at 745 Seventh Avenue, New York, New York 10019.
African) Financial Advisory and Intermediary Services Act, 37 of 2002, or any other financial, investment, trading, tax, legal, accounting, retirement, actuarial or other professional advice or service whatsoever. Any
South African person or entity wishing to effect a transaction in any security discussed herein should do so only by contacting a representative of Absa Capital in South Africa, 15 Alice Lane, Sandton, Johannesburg,
Gauteng 2196. Absa Capital is an affiliate of Barclays Capital.
In Japan, foreign exchange research reports are prepared and distributed by Barclays Bank PLC Tokyo Branch. Other research reports are distributed to institutional investors in Japan by Barclays Capital Japan Limited.
Barclays Capital Japan Limited is a joint-stock company incorporated in Japan with registered office of 2-2-2, Otemachi, Chiyoda-ku, Tokyo 100-0004, Japan. It is a subsidiary of Barclays Bank PLC and a registered
financial instruments firm regulated by the Financial Services Agency of Japan. Registered Number: Kanto Zaimukyokucho (kinsho) No. 143.
Barclays Bank PLC Frankfurt Branch is distributing this material in Germany under the supervision of Bundesanstalt fuer Finanzdienstleistungsaufsicht (BaFin). This material is distributed in Malaysia by Barclays
IRS Circular 230 Prepared Materials Disclaimer: Barclays Capital and its affiliates do not provide tax advice and nothing contained herein should be construed to be tax advice. Please be advised that any discussion of
U.S. tax matters contained herein (including any attachments) (i) is not intended or written to be used, and cannot be used, by you for the purpose of avoiding U.S. tax-related penalties; and (ii) was written to support
the promotion or marketing of the transactions or other matters addressed herein. Accordingly, you should seek advice based on your particular circumstances from an independent tax advisor.
© Copyright Barclays Bank PLC (2010). All rights reserved. No part of this publication may be reproduced in any manner without the prior written permission of Barclays Capital or any of its affiliates. Barclays Bank
PLC is registered in England No. 1026167. Registered office 1 Churchill Place, London, E14 5HP. Additional information regarding this publication will be furnished upon request.
High Yield Telecom and Cable/DBS

2010 Outlook and Best Ideas
Dave Sharret, CFA
AND SYNDICATED LOAN
Key Credit Drivers – Wireless CONFERENCE
• 4Q09 subscriber results were seasonally strong, led by growth in prepaid; however, price
competition on both the high and low end of the market continues to pressure profitability
• We expect Sprint to increasingly differentiate between its Sprint-branded postpaid results
(-90k in 4Q09), which are stabilizing, and its continued Nextel subscriber declines (albeit
with lower SG&A and capex requirements)
• Neither Leap Wireless nor MetroPCS provided 2010 guidance in light of economic
uncertainty and competitive concerns, but Leap Wireless’ commented that 1Q10 has been
trending well, largely related to broadband sales. We expect Boost results to be weak in
1H10, ahead of a brand repositioning in 2Q10
Wireless – “Big 4” Net Additions

Postpaid Net Additions (quarterly) Total Net Additions (quarterly)
(in millions) 4Q09 4Q08 4Q07 (in millions) 4Q09 4Q08 4Q07
AT&T 910 1,342 1,178 AT&T 2,661 2,095 2,675
Verizon 1,164 1,269 1,648 Verizon 2,236 1,370 2,008
Sprint (Retail) (504) (1,105) (683) Sprint (Retail) (69) (1,419) (628)
T-Mobile US (117) 267 733 T-Mobile US 371 622 951
Total 1,453 1,773 2,876 Total 5,199 2,668 5,006
% Y-o-Y Growth (18.0%) (38.4%) (15.6%) % Y-o-Y Growth 94.9% (46.7%) (7.8%)
Source: Company reports, Barclays Capital
AND SYNDICATED LOAN
Key Credit Drivers – Wireless CONFERENCE
• For postpaid, we expect the sector to shift its focus away from quarterly net
additions toward overall revenue trends and stabilizing ARPUs through
smartphone growth
• Sprint Nextel recently outlined its updated short-term compensation plan for 1H10,
which added service revenues as a 45% weighting and reduced postpaid net adds
to 0% from 40% in 2H09
Wireless – Sprint Nextel – Short-term Incentive Plan Comparison
First Quarter 2Q–4Q First Half Second Half First Half
2008 2008 2009 2009 2010
Service Revenue – – – – 45%
EBITDA 30% 20% 50% 30% 25%
Free Cash Flow – 20% – – –
Net Adds – Postpaid – – 20% 40% –
Net Adds – iDEN 20% – – – –
Churn – Postpaid 20% 40% 20% 20% 20%
4G Net Adds – – – – 10%
Call Center Volume 30% 20% 10% 10% –
100% 100% 100% 100% 100%
AND SYNDICATED LOAN
Key Credit Drivers – Wireline CONFERENCE
• Access line losses were stable to improving in 4Q09, but DSL results were mixed. Given
top-line pressures, companies remain focused on managing expenses and merger
synergies in order to sustain FCF generation. Guidance from the largest RLECs target flat
to mid-single-digit declines in EBITDA in 2010.
• Enterprise / wholesale trends were mixed, but some carriers began to see signs
of improvement
• The FCC’s national broadband plan targets a 10-year reduction in USF and switched
access rates and the creation of the Connect America Fund for broadband expansion.
Wireline – Access Line Y/Y Declines
0%
(2%)
(4%)
(6%)
(8%)
(10%)
(12%)
(14%)
WIN FTR CBB (In-Territory) CTL Qwest (Mass
4Q08 4Q09 Market)
AND SYNDICATED LOAN
Key Credit Drivers – Cable CONFERENCE
• Cable providers performed very well in 4Q09, with Cablevision, Mediacom, and Charter all
largely beating consensus estimates on both RGU net additions and financial results
• While basic subscriber losses were driven by successful promotions from the DBS satellite
providers (particularly DISH), cable companies took market share in high-speed internet
adds in 4Q09. Focus on commercial market opportunities in 2010.
• Increasing programming / retransmission expenses remains a near-term overhang for the
industry. We expect programming expenses per subscriber to increase by high-single-digit
percent in 2010, but still forecast margins to be broadly flat this year
Cable – Telecom and Cable/DBS, Subscriber Trends (000s)
Video High-Speed Internet Telephony

4Q09 4Q08 Change 4Q09 4Q08 Change 4Q09 4Q08 Change
Cable (363) (402) 40 465 389 76 430 583 (153)
Telco 401 567 (166) 197 450 (253) (1,104) (1,310) 206
DBS 368 199 169 – – – – – –
Total 406 364 43 662 839 (177) (674) (727) 53

AND SYNDICATED LOAN
Key Credit Drivers – Free Cash Flow CONFERENCE
Telecom and cable companies have been slow to ramp up shareholder

returns, instead focusing on investing for growth or building cash, while
depending on EBITDA growth to reduce leverage ratios
• Qwest – Focused on near-term maturity schedule; outlined a 2.2x target leverage ratio in
2011, which it hopes will warrant an IG rating
• Windstream – Higher M&A activity in 2009 along with comfort in its higher target leverage
vs. peers has been of concern to investors; the company plans to use excess FCF in 2010
to repay revolver borrowings related to the Iowa acquisition
• Cablevision – Did not announce incremental shareholder returns post-MSG spin; company
plans to only repay maturities in 2010; however, we would expect an increase in
shareholder returns at some point this year
• Mediacom – Cited intention to continue deleveraging; indicated the company could reach
about 5.0x leverage, but is comfortable in the 5–6x leverage range
• Sprint Nextel – Focused on FCF generation and maintaining significant liquidity (about
$4bn) in order to repay 2011/12 maturities and fund additional Clearwire financing as
needed
AND SYNDICATED LOAN
Key Credit Drivers – M&A / Strategic CONFERENCE
• Wireless
• Focus on market rationalization given the increase in pricing pressure as
industry growth slows
• Recent headlines concerning Leap Wireless, MetroPCS, T-Mobile US, and
Sprint Nextel all focused on the potential for industry consolidation
• Also an increased focus on the necessity for additional US wireless spectrum
• Wireline
• We expect consolidation in the ILEC and LD sectors, focused on cost-driven
synergies and the refocusing of ILEC business models away from consumer
wireline voice and increasingly into the business and broadband segments
• Cable
• Companies may be opportunistic in additional clustering, smaller asset sales
and purchases of targeted CLEC operations to help expand the reach of their
commercial business
AND SYNDICATED LOAN
Recent Sector Performance CONFERENCE
• 2009 – Higher quality sectors, telecom (+44.73% return) and cable (+35.96% return), both
underperformed the high beta-led rally in the High Yield Index in 2009
• 2010 – The wireless sector (1.53% YTD return) has significantly underperformed the HY
Index (4.11%) in 2010 given competitive concerns, while wireline returns (3.32%) have
been broadly in line. In addition, the cable sector (2.68%) has slightly underperformed
High Yield Telecom/Cable Indices Less High Yield Index

Spread (bps)
0
(300)
(600)
(900)
(1,200)
Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Feb-10
HY Telecom vs. HY Index HY Cable vs. HY Index
AND SYNDICATED LOAN
Top Trade Ideas – Telecom CONFERENCE
• Buy Sprint 2012 Senior Notes – We continue to recommend Sprint 2012 senior
notes, given relative spread versus 2012 maturities of other TMT issuers, such as
CVC 8% senior notes due 2012 and CHTR 8% senior notes due 2012.
Refinancing its revolver, which we expect will add flexibility to buy notes (currently
limited to maturities prior to January 2011), could be a near-term catalyst
• Swap into Sprint 2016 Notes out of Nextel 2015 Notes – Given the recent
outperformance of the Nextel structure, we recommend investors swap out of the
Nextel 2015 notes and into the Sprint Capital Corp 2016 Notes. Investors can take
out about 5pts, only give up about 50bp and benefit from better call protection. At
current levels, we recently downgraded Nextel Communications to Market Weight,
given limited spread behind Sprint bonds and call constraints
AND SYNDICATED LOAN
Top Trade Ideas – Cable / DBS CONFERENCE
• Sell Cablevision (CVC) 5y CDS – We highlight Cablevision’s attractive CDS

value relative to Windstream. CSC Holdings senior notes trade about 80–100bp
inside Windstream (WIN) senior notes, while CSC Holdings 5y CDS (350bp)
trades 5bp outside WIN 5y CDS (345bp). The company continues to highlight its
focus on reducing its $3.4bn of 2012 debt maturities, which would significantly
improve its debt amortization schedule over the medium term. Qwest’s debt tender
for its 2010 and 2011 notes was a recent catalyst for tightening in Qwest CDS. We
recommend that investors sell CSC Holdings 5y CDS
• Sell Mediacom (MCCC) 5y CDS – Given the strong 4Q09 financial results and
the near-term focus on reducing its leverage ratio, Mediacom bonds could
continue to tighten slightly from recent levels. However, we believe that the CVC-
MCCC bond spread should remain at least 100bp. For comparison, we note that
MCCC 5y CDS offers attractive relative value at about 400bp behind CSC
Holdings 5y CDS
AND SYNDICATED LOAN
i, Dave Sharret, hereby certify (1) that the views expressed in this research report accurately reflect MY personal views about any or all of the subject securities or issuers referred to in this research report and
(2) no part of our compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this research report.
212-526-1072.


AND SYNDICATED LOAN
its affiliates.
Exchange.
10019.
Food, Beverage, and Consumer Products

Reza Vahabzadeh
March 25, 2010

AND SYNDICATED LOAN
Food, Beverage, and Consumer Products CONFERENCE
A roller coaster ride on the commodity cost front
CRB Index
500
450
400
350
300
250
200
Jan-07 Oct-07 Jul-08 Apr-09 Mar-10
Jan-10
___________________________
Source: Reuters / Jefferies, Bloomberg, Barclays Capital analysis.
AND SYNDICATED LOAN
Cost of goods sold inflation has moderated in recent quarters
Est. COGS Inflation (Selected Companies)

12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
(2.0%)
(4.0%)
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
___________________________
Source: Company documents, Barclays Capital analysis.
AND SYNDICATED LOAN
Packaged food / bev experienced solid price / mix gains during CY09, which aided CY09 margins,
but price / mix has moderated recently.
% Change Y/Y Price / Mix (Selected Categories)

8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
Dec 07 Mar 08 Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09
___________________________
Source: Nielsen, Barclays Capital analysis.
AND SYNDICATED LOAN
Lower 2009 input costs aided 2009 margins, and could aid 1H10 margins; still, pockets
of inflation (cheese and protein), but many companies are hedged for 2010
Agricultural Commodity Prices: Year over Year Change (%)
1Q09 2Q09 3Q09 4Q09 1Q10(1)
Grains
Corn (24.5%) (48.4%) (36.2%) 1.8% (2.3%)
Soybean Meal (9.3%) 4.2% (6.4%) 15.3% 0.9%
Wheat (46.4%) (38.4%) (42.4%) (16.3%) (18.8%)
Proteins
Eggs (43.3%) (33.2%) (26.2%) 2.4% 9.4%
Pork (Boxed) 0.0% (31.4%) (28.4%) 21.4% 25.0%
Choice Beef (3.4%) (15.5%) (13.5%) (3.3%) 2.2%
Chicken Breast (4.2%) 12.6% (3.7%) 5.0% 8.5%
Dairy
Milk (Class I) (36.3%) (38.4%) (32.7%) (7.9%) 13.2%
Cheddar Cheese (28.6%) (42.1%) (27.9%) 21.0% 25.3%
Other
Aluminum (52.9%) (47.5%) (26.3%) 47.0% 57.2%
Natural Gas (60.7%) (71.6%) (60.3%) 8.8% 14.8%
Diesel Fuel (54.7%) (54.7%) (42.1%) 70.8% 55.5%
___________________________
Source: USDA, Bloomberg, Barclays Capital analysis.
1. To-Date.
AND SYNDICATED LOAN
Grain costs are trending below prior-year levels, which should benefit protein processors
Corn Spot Price – USDA Chicago Processor Bid, $/bushel USDA Soybean Meal Spot Price
7.5 500
6.5 450
400
5.5
350
4.5
300
3.5 250
2.5 200
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2009 2008 2010 2009 2008
Hard Red Winter Wheat Spot Price, Kansas City, $/bushel

14.0
11.5
9.0
6.5
4.0
Jan Feb Mar Apr Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2009 2008
___________________________
AND SYNDICATED LOAN
Lower overall protein inventories generally bode well for meat processors:
SFD and TSN, barring increased productions (or trade issues)
Total Protein Storage
1,780
1,740
1,700
1,660
1,620
1,580
1,540
1,500
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2009 5-Year Average
___________________________
AND SYNDICATED LOAN
Potentially higher protein prices generally are favorable for meat processing, but some
margin choppiness is likely given normal challenges in passing through higher costs to retail
Estimated Net Pork Processing Margin, $/head Estimated Hog Raising Margin, $/head
15.0 20
10.0 0
5.0 (20)
0.0 (40)
(5.0) (60)
(10.0) (80)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2010 2009 2010 2009
Est. Net Chicken Processing Margin – Rolling 2-Week ($/cwt) Net Beef Processing Margin, $/head
15.0 140.0
10.0 100.0
5.0 60.0
0.0 20.0
(5.0) (20.0)
(10.0) (60.0)
Jan Feb Mar Apr Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Sep Oct Nov Dec
2010 2009 2010 2009
___________________________
AND SYNDICATED LOAN
Supermarket identical store sales have weakened sequentially, reflecting a

shift toward value channels and deflation in commodity categories
% Change Y/Y Supermarket Identical Store Sales (%)
3.0%
2.0%
1.0%
0.0%
(1.0%)
(2.0%)
(3.0%)
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
___________________________
AND SYNDICATED LOAN
Dollar and club channels have shown positive same store sales recently, while
Wal-Mart same store sales trends have declined the past several quarters
% Change Y/Y Dollar Stores, Clubs, Wal-Mart (%)
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
(1.0%)
(2.0%)
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
Dollar Stores Clubs WMT
___________________________
AND SYNDICATED LOAN
SKU rationalization continues, but the effect varies by category / brand

SKU Rationalization
Average Items Per Store
4Q08 4Q09 % Chg YoY
Frozen Dinners
Category 431 429 (0.5%)
Con Agra 80 85 6.3%
Soup
Category 270 269 (0.4%)
Campbell 112 108 (3.6%)
Detergent
Category 177 176 (0.6%)
Church & Dwight 15 22 46.7%
CSD
Category 256 264 3.1%
Coke 53 53 0.0%
DPS 67 76 13.4%
Wine
Category 348 338 (2.9%)
Constellation
___________________________
72 63 (12.5%)
AND SYNDICATED LOAN
Keep an eye on competitive activity, as promotional volume has picked up

% Change Y/Y Sales on Promotion (Selected Categories)
2.0%
1.5%
1.0%
0.5%
0.0%
(0.5%)
(1.0%)
(1.5%)
Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09
Jan-10
___________________________
AND SYNDICATED LOAN
Private label continues to gain share, but at a moderating pace

% Change Y/Y Private Label Dollar Share (Selected Categories)
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09
Jan-10
___________________________
AND SYNDICATED LOAN
Casual dining same store sales trends sequentially improving in 4Q09

Casual Dining Same Store Sales Trends %
1.0%
0.0%
(1.0%)
(2.0%)
(3.0%)
(4.0%)
(5.0%)
(6.0%)
(7.0%)
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
___________________________
AND SYNDICATED LOAN
Weakening 4Q sales trends in QSR and family dining, but BKC recently raised pricing
Same Store Sales Trends %

2.0%
1.0%
0.0%
(1.0%)
(2.0%)
(3.0%)
(4.0%)
(5.0%)
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
QSR Family Dining
___________________________
AND SYNDICATED LOAN
Healthy multiples in packaged food, reasonable in beverages, narrow band in fresh fruit
Food and Beverage Enterprise Valuations
Now At 6/5/2009
$mm Enterprise Value EV/LTM EBITDA EV/LTM EBITDA
Agri-Meat Processing
Sanderson Farms 1,148 5.3x N/A
Smithfield Foods 5,609 22.9x 16.3x
Tyson Foods Inc 8,790 6.4x 13.9x
Beverages
Cott Corporation 832 4.9x 7.0x
Constellation Brds 7,987 7.7x 6.4x
Dean Foods 7,073 7.3x 7.5x
Dr Pepper Snapple 11,688 9.1x N/A
Packaged Food
B&G Foods 925 8.7x 8.3x
ConAgra Foods 14,315 9.0x 7.9x
Del Monte 4,176 6.8x 7.7x
J.M. Smucker 8,040 7.5x 8.9x
Fresh Fruit/Produce
Chiquita 1,341 6.7x 10.5x
Dole Foods 2,622 6.8x N/A
Food Service
Cintas 4,566 7.2x N/A
Compass Group (US $)
___________________________ 15,263 9.6x 7.6x
Source: Barclays Capital estimates.
AND SYNDICATED LOAN
Global M&A Volume ($bn)

400
350
300
250
200
150
100
50
Aug 09
Aug 08
Apr 09
Jun 09
Jul 09
Apr 08
Jun 08
Jul 08
Jan 09
Feb 09
Sep 09
Nov 09
Jan 08
Feb 08
Mar 08
Sep 08
Nov 08
Mar 09
May 09
May 08
Oct 09
Oct 08
Dec 09
Dec 08
___________________________
Source: Bloomberg, Barclays Capital.
AND SYNDICATED LOAN
Credit markets continue to heal, as evidenced by lower YTW of the HY market.
25
20
15
10
5
Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Mar-10
Jan-10
HY Index YTW HY Food / Bev Index YTW

___________________________
AND SYNDICATED LOAN
Food and Beverage YTW vs. LTM Leverage

10.0
HY Index (3/10/10): Harry&David
8.7% YTW Reddy Ice 1st Lien
9.5
F&B HY Index (3/10/10): PFHC SrSub
7.1% YTW
Yeold to Worst (%)
9.0
AOne
Llakes Cap Secs
8.5
PFHC SrNts SFD SrNts'17
8.0
CQB '15
COTT DOL '14 Dean '16
7.5
SFD SrNts'13
DOL '16 BUMBLE SrSec '15 Aramark '15
B&G
7.0 SFD SrSec Nts '14
DLM '19 Treehouse
CQB '14
MICFOO STZ SrNts '16
6.5
1.5x 2.0x 2.5x 3.0x 3.5x 4.0x 4.5x 5.0x 5.5x 6.0x 6.5x 7.0x 7.5x 8.0x
Net Leverage
___________________________
Source: Company documents and Barclays Capital estimates.
AND SYNDICATED LOAN
Sector view: cautiously constructive view of HY consumer products space,

but valuations appear full (Market Weight)
Mixed Outlook
Tepid 2010 Top-line Outlook
• Overall consumer spending has exhibited modest y/y gains, plus tapering retailer inventory
de-stocking
• But consumer may remain cautious, reflecting weak labor markets, suggesting sluggish category
sales trends, with significant divergence in category sales performance
Margins
• 1Q10/1Q10 likely to benefit from lower input costs of 2009, reasonable y/y cost comparisons
and significant cost savings actions of prior year
• 2H10 margin may face some pressures, as there are growing pockets of inflationary cost pressures
(metals, resin, fuel)
Improved Enterprise Values / Balance Sheets
• Enterprise value multiples have staged a material rebound, especially for discretionary product
companies. Balance sheets have improved, given significant refinancing activity
Full Valuations
• The YTW of 7.9% (542bps) of the HY consumer products space is 60–80bp inside the HY market
YTW, compared with 50bp premium during CY07–CY08
AND SYNDICATED LOAN
Overall consumer spending has stabilized and is improving y/y

% Change Y/Y Consumer Spending (Real Terms) – Rolling 3 Month Average
2.0%
1.5%
1.0%
0.5%
0.0%
(0.5%)
(1.0%)
(1.5%)
(2.0%)
Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10
___________________________
Source: Bloomberg, Bureau of Economic Analysis, Barclays Capital analysis.
AND SYNDICATED LOAN
Labor market conditions weak, cautious consumer

US Unemployment Rate (%)
10.5%
8.5%
6.5%
4.5%
Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Feb-10
Jan-10
US Personal Savings Rate (%)

6.5%
4.5%
2.5%
0.5%
Jan 08 Apr 08 Jul 08 Oct 08 Jan 09 Apr 09 Jul 09 Oct 09 Jan 10
___________________________
Source: Bloomberg, Bureau of Labor Statistics, Bureau of Economic Analysis, Barclays Capital analysis.
AND SYNDICATED LOAN
Lower 2009 input costs rolling through 1Q10/1H10, but growing pockets of input cost inflation
Commodities – Y/Y Change
1Q09 2Q09 3Q09 4Q09 1Q10(1)
Energy
West Texas Inter. Crude (52%) (49%) (38%) 111% 92%
Natural Gas (61%) (72%) (60%) 9% 15%
Low Sulphur Diesel (55%) (55%) (42%) 71% 56%
Metals
Steel – Hot Rolled Sheet (36%) (64%) (46%) (12%) 12%
Aluminum (53%) (48%) (26%) 47% 57%
Gold (3%) 4% 13% 28% 24%
Zinc (44%) (19%) 6% 119% 97%
Packaging
Linerboard 2% (3%) (13%) (12%) (2%)
Resin
Polypropylene (38%) (36%) (14%) 74% 72%
PET Resin (20%) (22%) (14%) 20% 25%
Total Average (37%) (36%) (23%) 49% 48%
___________________________
Source: Bloomberg, Trade Journals, Barclays Capital analysis.
1. To date.
AND SYNDICATED LOAN
Rebounding EV / EBITDA multiples, especially in consumer discretionary space

Consumer Products Enterprise Valuations
Now At 6/01/09
Enterprise Value EV / LTM EBITDA EV / LTM EBITDA
Consumable Companies
Church & Dwight 5,142 9.7x 7.7x
Energizer 6,201 7.4x 6.8x
Prestige Brands 715 7.2x 6.5x
Consumer Discretionary
Acco Brands 1,132 7.5x 6.7x
Jarden 5,395 7.5x 5.9x
Newell Rubbermaid 6,947 7.8x 7.3x
Revlon 2,015 7.7x 6.4x
Sealy Mattress 1,752 10.9x 9.3x
Tempur-Pedic 2,598 14.0x 7.6x
Garden / Pet Products
Central Garden 1,080 6.4x 6.8x
Scotts Miracle-Gro 3,806 10.4x 9.3x
For-Profit Education
Apollo Group 10,099 7.3x 7.3x
EDMC 4,831 9.5x N/A
ITT Educational
___________________________ 4,151 7.8x 7.8x
Source: Barclays Capital estimates.
AND SYNDICATED LOAN
Consumer products space is trading somewhat inside market averages

25
20
15
10
5
Jan-07 Jun-07 Nov-07 Apr-08 Sep-08 Feb-09 Jul-09 Dec-09
Mar-10
HY Index YTW HY Consumer Index YTW
___________________________
AND SYNDICATED LOAN
Consumer Products YTW vs. Leverage

11.0 Affini SrSub
HY Index (3/10/10):
8.7% YTW AmesTT SrSub
10.5
Consumer HY Index (3/10/10): JohnsonDiversey Holdco AmAch Holdco
7.9% YTW
10.0
Yeold to Worst (%)
9.5 Affini Sr Amscan

Acco SrSub
9.0 REV Sr Sec Nts
Remington
Steinway Sr Nts
AmAch Opco. Easton Sr Sec Nts
8.5 EDMC SrSub
Sealy SrSec AmesTT SrFltg Libbey Sr Sec Nts
Prestige
8.0 Sealy SrSub
Acco SrSec Visant HCoCash
CENT Visant HCoZero
7.5 JohnsonDiversey Sr Nts EDMC Sr
JAH SrSub RDEN
7.0 JAH SrNts
Scotts SrNts
Visant Opco
6.5
2.0x 2.5x 3.0x 3.5x 4.0x 4.5x 5.0x 5.5x 6.0x
___________________________ Leverage
Source: Company documents and Barclays Capital estimates.
AND SYNDICATED LOAN
I, Reza Vahabzadeh, hereby certify (1) that the views expressed in this research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in
this research report and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this research report.
Avenue, 17th Floor, New York, NY 10019 or refer to https://ecommerce.barcap.com/research/cgi-bin/all/disclosuresSearch.pl or call
212-526-1072.
Barclays Capital does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that Barclays Capital may have a conflict of interest
that could affect the objectivity of this report. Any reference to Barclays Capital includes its affiliates. Barclays Capital and/or an affiliate thereof (the "firm") regularly trades, generally deals
as principal and generally provides liquidity (as market maker or otherwise) in the debt securities that are the subject of this research report (and related derivatives thereof). The firm's
proprietary trading accounts may have either a long and / or short position in such securities and / or derivative instruments, which may pose a conflict with the interests of investing
customers. Where permitted and subject to appropriate information barrier restrictions, the firm's fixed income research analysts regularly interact with its trading desk personnel to
determine current prices of fixed income securities. The firm's fixed income research analyst(s) receive compensation based on various factors including, but not limited to, the quality of
their work, the overall performance of the firm (including the profitability of the investment banking department), the profitability and revenues of the Fixed Income Division and the
outstanding principal amount and trading value of, the profitability of, and the potential interest of the firms investing clients in research with respect to, the asset class covered by the
analyst. To the extent that any historical pricing information was obtained from Barclays Capital trading desks, the firm makes no representation that it is accurate or complete. All levels,
prices and spreads are historical and do not represent current market levels, prices or spreads, some or all of which may have changed since the publication of this document. Barclays
Capital produces a variety of research products including, but not limited to, fundamental analysis, equity-linked analysis, quantitative analysis, and trade ideas. Recommendations
contained in one type of research product may differ from recommendations contained in other types of research products, whether as a result of differing time horizons, methodologies, or
otherwise.
Overweight: The analyst expects the six-month total return of the rated debt security or instrument to exceed the six-month expected total return of the Barclays Capital U.S. 2% Issuer
Issuer Capped High Yield Credit Index, the Pan-European High Yield 3% Issuer Capped Credit Index excluding Financials, or the EM Asia USD High Yield Corporate Credit Index, as
applicable.
AND SYNDICATED LOAN
This publication has been prepared by Barclays Capital, the investment banking division of Barclays Bank PLC, and/or one or more of its affiliates as provided below. This publication is
provided to you for information purposes only. Prices shown in this publication are indicative and Barclays Capital is not offering to buy or sell or soliciting offers to buy or sell any financial
instrument. Other than disclosures relating to Barclays Capital, the information contained in this publication has been obtained from sources that Barclays Capital believes to be reliable, but
Barclays Capital does not represent or warrant that it is accurate or complete. The views in this publication are those of Barclays Capital and are subject to change, and Barclays Capital
has no obligation to update its opinions or the information in this publication. Barclays Capital and its affiliates and their respective officers, directors, partners and employees, including
persons involved in the preparation or issuance of this document, may from time to time act as manager, co-manager or underwriter of a public offering or otherwise, in the capacity of
principal or agent, deal in, hold or act as market-makers or advisors, brokers or commercial and/or investment bankers in relation to the securities or related derivatives which are the
subject of this publication.
The analyst recommendations in this report reflect solely and exclusively those of the author(s), and such opinions were prepared independently of any other interests, including those of
Barclays Capital and/or its affiliates.
Neither Barclays Capital, nor any affiliate, nor any of their respective officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising
from any use of this publication or its contents. The securities discussed in this publication may not be suitable for all investors. Barclays Capital recommends that investors independently
evaluate each issuer, security or instrument discussed in this publication and consult any independent advisors they believe necessary. The value of and income from any investment may
fluctuate from day to day as a result of changes in relevant economic markets (including changes in market liquidity). The information in this publication is not intended to predict actual
results, which may differ substantially from those reflected. Past performance is not necessarily indicative of future results.
This communication is being made available in the UK and Europe to persons who are investment professionals as that term is defined in Article 19 of the Financial Services and Markets
Act 2000 (Financial Promotion Order) 2005. It is directed at, and therefore should only be relied upon by, persons who have professional experience in matters relating to investments. The
investments to which it relates are available only to such persons and will be entered into only with such persons. Barclays Capital is authorized and regulated by the Financial Services
Authority ('FSA') and member of the London Stock Exchange.
Barclays Capital Inc., US registered broker/dealer and member of FINRA (www.finra.org), is distributing this material in the United States and, in connection therewith accepts responsibility
for its contents. Any U.S. person wishing to effect a transaction in any security discussed herein should do so only by contacting a representative of Barclays Capital Inc. in the U.S. at 745
Seventh Avenue, New York, New York 10019.
Subject to the conditions of this publication as set out above, Absa Capital, the Investment Banking Division of Absa Bank Limited, an authorised financial services provider (Registration
No.: 1986/004794/06), is distributing this material in South Africa. Absa Bank Limited is regulated by the South African Reserve Bank. This publication is not, nor is it intended to be, advice
as defined and/or contemplated in the (South African) Financial Advisory and Intermediary Services Act, 37 of 2002, or any other financial, investment, trading, tax, legal, accounting,
retirement, actuarial or other professional advice or service whatsoever. Any South African person or entity wishing to effect a transaction in any security discussed herein should do so only
by contacting a representative of Absa Capital in South Africa, 15 Alice Lane, Sandton, Johannesburg, Gauteng 2196. Absa Capital is an affiliate of Barclays Capital.
In Japan, foreign exchange research reports are prepared and distributed by Barclays Bank PLC Tokyo Branch. Other research reports are distributed to institutional investors in Japan by
Barclays Capital Japan Limited. Barclays Capital Japan Limited is a joint-stock company incorporated in Japan with registered office of 6-10-1 Roppongi, Minato-ku, Tokyo 106-6131,
Japan. It is a subsidiary of Barclays Bank PLC and a registered financial instruments firm regulated by the Financial Services Agency of Japan. Registered Number: Kanto Zaimukyokucho
(kinsho) No. 143.
Barclays Bank PLC Frankfurt Branch is distributing this material in Germany under the supervision of Bundesanstalt fuer Finanzdienstleistungsaufsicht (BaFin). This material is distributed
in Malaysia by Barclays Capital Markets Malaysia Sdn Bhd.
IRS Circular 230 Prepared Materials Disclaimer: Barclays Capital and its affiliates do not provide tax advice and nothing contained herein should be construed to be tax advice. Please be
advised that any discussion of U.S. tax matters contained herein (including any attachments) (i) is not intended or written to be used, and cannot be used, by you for the purpose of avoiding
U.S. tax-related penalties; and (ii) was written to support the promotion or marketing of the transactions or other matters addressed herein. Accordingly, you should seek advice based on
your particular circumstances from an independent tax advisor.
© Copyright Barclays Bank PLC (2010). All rights reserved. No part of this publication may be reproduced in any manner without the prior written permission of Barclays Capital or any of its
affiliates. Barclays Bank PLC is registered in England No. 1026167. Registered office 1 Churchill Place, London, E14 5HP. Additional information regarding this publication will be furnished
upon request.

Lehman HY

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Lehman HY

Uploaded by

Copyright:

Available Formats

2010 HIGH YIELD BOND AND

SYNDICATED LOAN CONFERENCE

High Yield and Leveraged Loan Strategy

March 24, 2010*

* Updated to include polling results on March 29, 2010

Overview and Outlook

US Lev. Loans 8–9% 8–9% 2%

• Loans have performed in line with high yield bonds year-to-date

Trailing 3m Price Volatility(2) HY Bond Versus Leveraged Loan Returns

Credit Derivatives Net Notional Values HY TRACE Volume

Correlation of Yield Changes in Treasury and HY Ba–Baa Spread

• Investors can obtain substantial yield by High Yield Statistics

• In an environment characterized by carry-like returns, high-quality, high-current-yield notes

HY Cash-CDS Basis Cash Curves vs. CDS Curves

• As reinvestment periods come closer to ending, CLOs have several incentives

Loans Trading in $80–90 / Rated CCC+ or Below 2009–YTD Amend-and-Extends

25% Launched 59 116

Financials as a % of the HY Index Largest Financials in the US HY Index

High Yield Credit Strategy High Yield Credit Strategy

High Yield Media and Entertainment

Industry Drivers in 2010

Barclays Capital Equity Research Estimates

Source: Company reports and Barclays Capital estimates

• Radio revenues were pressured in 2009 from the same macroeconomic

Dead Cat Bounce?

Light Vehicle Auto Sales – Actual and Expected

Source: Barclays Capital Equity Research

• We generally expect companies to achieve higher margins than prior to the

• In addition, we remain concerned that certain expense cuts (as in newspaper)

• Record 2009 Box Office

Number of nearer-term refinancing candidates, including:

Explanation of the High Yield Sector Weighting System

Explanation of the High Yield Research Rating System

Michelle Meyer, US Economics

Home Sales on a Bumpy Uptrend

Mortgage Rates at Record Lows Home Prices at Fair Valuation

Inventory Has Declined, but Should Remain Stubbornly High

Starts Running Below Sales “Under-Building” Should Continue

Large Foreclosure Pipeline Expect 6mm REOs over Next 3 Years

HAMP Has Disappointed HAFA on the Way

Non-Seasonally Adjusted Sales REO Share of Total Sales

Distressed Voluntary Total Distressed Share

Histogram of Foreclosures by State Prices vs. Foreclosures by State

Annual Percent Change in Home Prices by Major Metro Area

Rates to Gradually Trend Higher Unemployment Rate to Decline

GDP Growth Should Continue Sustained Recovery Likely to Emerge

Forecasts Annual Averages

Vincent Foley, US Credit Research

Homebuilder Operating Trends

Homebuilder Sales Cancellation Rates

New Home Orders

Spring Selling Seasons: Past and Future

Land and Other Charges

Backlog Values (Dollar Value)

Liquidity and Leverage

Beazer Homes $432 $125 $579 ($121) 81%

D.R. Horton $1,904 $352 $2,256 $926 28%

KB Home $1,175 $190 $1,390 $936 48%

Lennar $1,167 $320 $1,487 $476 37%

Pulte Homes $1,443 $917 $2,539 $1,321 43%

Ryland $743 $99 $842 $518 16%

2009-2010 Capital Raising Efforts

Trade: Sell 5y CDS; Buy SPF 10.75% due 2016

Trade: Buy RYL 8.4% due 2017