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Eric - we will play and move very fast. Keri Findley is our Portfolio Manager. Let her know what to do.


-----Original Message-----
From: Eric Schwerin [eschwerin@rosemontseneca.com<mailto:eschwerin@rosemontseneca.com>]
Sent: Tuesday, March 10, 2015 01:52 PM Eastern Standard Time
To: Josh Targoff
Cc: Hunter Biden
Subject: Freddie Mac

Josh-

Hope you are well. We’ve been approached by former Washington DC mayor, Sharon Pratt, whose minority owned firm is on the short list to bid on the sale of $250m of Freddie Mac bonds. Apparently, Freddie Mac desperately needs to find minority owned firms as potential buyers because of Dodd-Frank.

They are looking for an equity partner to go in on it with them and are looking for about $20m. See brief description below. Is this anything you’d be interested in or know someone who would? Of course, like all of these things the timeline is short and they are looking for a partner to come in in the next couple of weeks. Let us know. Happy to connect you to the appropriate people if you want more info.
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It’s a $250MM pool which we will purchase at around 70% so around $170MM. Nomura is the line of credit, for immediate or near term securitization of Class A and M bonds. Nomura lends on 75-25 model (debt to equity) on the purchase price so equity requirement is upwards of $40MM. Our partner and co-manager on the deal will be bringing 50% of the equity so $20MM. We are looking for our $20MM. We have about $4MM thus far. We should have access to the pool today or tomorrow at which point we can drill down on price of the pool and create a cash flow projection for any equity investors. We may pull in Jefferies for a mezzanine line if push comes to shove (they have offered this in the past) but would love to fill in the $40MM gap with true equity.
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Best,

Eric


Eric D. Schwerin
Rosemont Seneca Partners, LLC
1010 Wisconsin Ave., NW
Suite 705
Washington, DC 20007
(202) 333-1880
eschwerin@rosemontseneca.com<x-msg://59/eschwerin@obblaw.com>
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