EFTA01368644.pdf

Proton therapy bonds Area of expertise: Private markets Theme: Sources of current income rew — The Provision Center for Proton Therapy (PCPT) is an ancillary healthcare facility providing cutting edge proton therapy treatment to cancer patients in Knoxville, Tennessee — The bonds were issued through the Health, Education & Housing Facilities Board of the County of Knox, Tennessee with a 20 year fully amortizing term maturing in 2034. They are secured by a first mortgage on all property, plant and equipment comprising the project as well as a pledge of gross revenues — The amortization profile of the bonds provides a WAL of 6 years for the 2025 bonds and 16 years for the 2034 bonds — Debt service coverage ratio is expected to climb to 1.75x by the end of 2015 — Risks: Interest rate risk, credit risk of issuer, medical reimbursement risk Implementation Credit strengths Bond structure: Project completed on time and budget. Ramp-up accelerating Timeline with all three initial treatment rooms operational, partially Maturity Par/mm Coupon Average life Turbo A/L mitigating stabilization risk 5/1/2034 75.60 6.00% 9/19/2030 8/1/2020 5/1/2025 53.97 5.25% 11/4/2020 n.a. Requires 8.8% market share (515 annual patients) of primary Business — Unlevered, the bonds provide a tax exempt return of model service area proton-eligible patients to reach breakeven, and just approximately 5-6% with upside potential once the project is 2.3% when extended to secondary service area stabilized Provided through restrictive state certificate of need process. — The tax exempt municipal bonds backed by the fully Protected Strong location on a mature cancer-care medical campus shared stabilized proton therapy center in Jacksonville, FL, recently market share with clinical partners. Nearest competitor over 500 miles away traded at 3.60% yield to worst, illustrating the value the market assigns to a stabilized project Considerable experience managing new medical technologies — Applying TRS leverage, an investor can receive mid to high Management from both a facilities management and reimbursement teens in taxable interest team development standpoint — For investors that value the tax exempt income, DB can utilize a Senior/Sub trust structure to achieve low double Operating Impressive YTD operating results with the May through July digit tax exempt yield results period producing above budget patient volume, net patient revenues and cash collections, offsetting initial ramp off softness Deutsche Asset e, Mana9eive For U.S. Key Client Partners (KCP) Clients Only 17 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0060508 CONFIDENTIAL SDNY GM_00206692 EFTA01368644