+LJKO\/LQHDU/1$'RZQFRQYHUWHU
0+]
0'
)HDWXUHV
Q
Q
Q
Q
Q
Q
Q
Q
)XQFWLRQDO6FKHPDWLF
,)0$7&+
,)0$7&+
/1$287
'HVFULSWLRQ
0$&20¶V0'LQWHJUDWHGGRZQFRQYHUWHUFRP
ELQHVDORZQRLVHDPSOLILHU5)DPSOLILHUPL[HU,)DP
SOLILHUDQG/2EXIIHULQDPLQLDWXUHPLOOLPHWHUSODVWLF
0/)SDFNDJHWKDWKDVDQH[SRVHGSDGGOHIRULPSURYHG
KLJKIUHTXHQF\JURXQGLQJ
0$&20GHVLJQHGWKH0'IRU&'0$KDQGVHWV
UHTXLULQJZLGHG\QDPLFUDQJHDQGORZSRZHUFRQVXPS
WLRQ7KH/1$IHDWXUHVVWHSSHGJDLQFRQWUROIRUXVHLQ
ZLGHG\QDPLFUDQJHUHFHLYHUV
0$&20IDEULFDWHVWKH0'XVLQJDPLFURQ
ORZQRLVH('*D$V0(6)(7SURFHVV7KHSURFHVV
IHDWXUHVIXOOSDVVLYDWLRQIRULQFUHDVHGSHUIRUPDQFH
DQGUHOLDELOLW\
+LJKO\LQWHJUDWHG/1$DQGGRZQFRQYHUWHU
2SHUDWHVZLWKVXSSO\YROWDJHIURP9WR9
/RZQRLVHILJXUHG%7\SLFDO
8OWUDORZFXUUHQWFRQVXPSWLRQ
+LJKLQSXWLQWHUFHSWSRLQW
6WHSSHGJDLQFRQWURO
/RZ/2GULYHOHYHOG%P
0LQLDWXUHPP0/)SODVWLFSDFNDJH
/1$9
''
*1'
/1$,1
/1$6:,7&+
/1$65&
*1'
5)$,1
5)$65&
5)$9
''
*1'
/2,1
/29
''
,)287
,)287
65&)0
)0287
3LQ&RQILJXUDWLRQ
3,1
1R
3,1
1DPH
'HVFULSWLRQ
/1$9
''
/1$9
''
*1'
'&*URXQG
/1$,1 /1$,QSXW3,1
/1$6: /1$VZLWFKXVHGWRVHW/1$LQ+LJK9
RU/RZ
/1$
/1$6RXUFH5)%\SDVV
5HFRPPHQGHG3&%&RQILJXUDWLRQ
,)$',))(5(17,$/
*1' 06 9''
*1'
)09
/1$/1$6: *1'
9
+*/*
5)$9
/1$9
,)±287 'LIIHUHQWLDO,)$PSOLILHU2XWSXW
,)287 'LIIHUHQWLDO,)$PSOLILHU2XWSXW
)065& 6LQJOH(QGHG,)$6RXUFH5)%\SDVV
)0287 6LQJOH(QGHG,)$2XWSXW
6(/
6HOHFWV'LIIHUHQWLDO9
RU6LQJOHHQGHG9
/2,1
5)$,1
/1$287
)0287
,)
/29
''
/2$PSOLILHU9
''
/2,1
*1'
/2,QSXW3,1
*URXQG
5)$9
''
5)$PSOLILHU9
''
5)$
5)$6RXUFH5)%\SDVV
/1$,1
,)
5)$,1 5)$,QSXWIURPD6$:)LOWHU
*1'
0
0
/1$
*URXQG
,)$,QSXW0DWFKLQJ3,1
,)$,QSXW0DWFKLQJ3,1
/1$2XWSXWWRD6$:)LOWHU
6(/
+LJKO\/LQHDU/1$'RZQFRQYHUWHU0+] 0'
2SHUDWLQJ,QVWUXFWLRQV
7KH 0' LV D KLJKO\ LQWHJUDWHG 00,&
GRZQFRQYHUWHUIRUWKH±0+]FHOOXODUEDQG7KH
GRZQFRQYHUWHU SURYLGHV H[FHSWLRQDO 5) SHUIRUPDQFH
ZKLOHGUDZLQJORZ'&FXUUHQWDQGLVDVVHPEOHGLQDORZ
FRVWSODVWLFSDFNDJH7KH0'LQFRUSRUDWHVERWK
D VLQJOH HQGHG DQG GLIIHUHQWLDO ,) RXWSXWV WKDW DOORZ IRU
GXDOEDQGFHOOXODURSHUDWLRQ,WLVDQLGHDOFDQGLGDWHIRU
OLJKWZHLJKW EDWWHU\ RSHUDWHG SRUWDEOH KDQGVHW
DSSOLFDWLRQV
7KH 0' LQFRUSRUDWHV DQ /1$ 5)$ /2$
0L[HU GLIIHUHQWLDO ,) DQG VLQJOH HQGHG ,) DPSOLILHUV
6XUIDFH PRXQW LQGXFWRUV DQG FDSDFLWRUV DUH XVHG LQ
FRQMXQFWLRQ ZLWK WKH 00,& WR RSWLPL]H WKH WUDGHRIIV
EHWZHHQ SHUIRUPDQFH WXQDELOLW\ DQG HDVH RI XVH 7KH
VFKHPDWLFRQSDJHVKRZVWKH00,&DQGUHTXLUHGRII
FKLSFRPSRQHQWYDOXHV
7KH/1$LVELDVHGDWP$QRPLQDOO\7KHFRPSRQHQWV
/ & DQG & DUH WXQLQJ HOHPHQWV IRU WKH LQSXW
PDWFKLQJ QHWZRUN &DSDFLWRU & LV RIWHQ MXVW UHSODFHG
ZLWK D VKRUW DV WKHUH LV D '& EORFNLQJ FDSDFLWRU SUHVHQW
RQFKLS&DSDFLWRU&LVD5)IUHTXHQF\E\SDVVFDSDFLWRU
IRU WKH '& VXSSO\ OLQH &DSDFLWRU & LV XVHG WR E\SDVV
WKHVRXUFHRIWKH/1$7KHRXWSXWPDWFKLQJLVGRQHDOO
RQFKLSDQGLQFOXGHVD'&EORFNLQJFDSDFLWRU7KH/1$
KDVWZRJDLQVWDWHVDKLJKJDLQVWDWHZKHQ9LVSODFHG
RQ WKH µ/1$ 6ZLWFK¶ SLQ DQG D ORZ JDLQ VWDWH ZKHQ
9ROWVLVSODFHGRQWKHµ/1$6ZLWFK¶SLQ7KHFLUFXLWKDV
EHHQGHVLJQHGWRSURYLGHLQVHQVLWLYLW\WRYROWDJHFKDQJHV
RQ WKH µ/1$ 6ZLWFK¶ SLQ WKXV WKH µKLJK JDLQ¶ PRGH
UHTXLUHVDYROWDJHIURP9ROWVDQGWKHµORZJDLQ¶
PRGH UHTXLUHV D YROWDJH RI 9ROWV 7KH SRVLWLRQ RI
ERWK & DQG & VKRZQ LQ WKH DSSOLFDWLRQ FLUFXLW PD\
DIIHFWWKHJDLQRIWKH/1$DPSOLILHUDQGVKRXOGEHSODFHG
DV FORVH WKH GHYLFH DV LV SUDFWLFDO $Q RII FKLS 6$:
6XUIDFH $FRXVWLF :DYH
)LOWHU LV UHTXLUHG EHWZHHQ WKH
/1$ DQG WKH 5)$ WR UHMHFW RXW RI EDQG VLJQDOV DW WKH
/1$ LQSXW IURP OHDNLQJ LQWR WKH GRZQFRQYHUWHU VHFWLRQ
RIWKHFKLS
7KH PDWFKLQJ QHWZRUN WRSRORJ\ RI ERWK WKH LQSXW DQG
RXWSXW PDWFKLQJ QHWZRUNV IRU WKH 5) DPSOLILHU SURYLGHV
LQWHUQDO'&EORFNLQJFDSDFLWRUVWRSUHYHQWXQZDQWHG'&
OHDNDJH %RWK RI WKHVH QHWZRUNV DUH HQWLUHO\ RQFKLS
&DSDFLWRU & LV D VRXUFH E\SDVV FDSDFLWRU IRU WKH 5)
DPSOLILHU&LVD5)E\SDVVFDSDFLWRUIRUWKH'&VXSSO\
OLQH6LPLODUWRWKH/1$&DQG&VKRXOGEHSODFHGDV
FORVHWKHGHYLFHDVLVSUDFWLFDO
7KH/2LQSXWSRUWLVPDWFKHGRQFKLSWRΩ7KH/2
EXIIHU DPSOLILHU SURYLGHV WKH YROWDJH JDLQ UHTXLUHG WR
GULYHWKHJDWHRIWKHPL[HU)(7ZKLOHGUDZLQJDPLQLPDO
DPRXQWRIFXUUHQW7KH/2EXIIHUDPSOLILHVWKH±G%P
LQSXWVLJQDOWRWKHOHYHOUHTXLUHGWRGULYHWKHPL[HU)RU
RSWLPXP SHUIRUPDQFHLW LVUHFRPPHQGHG WR XVH D GULYH
OHYHORI±G%P&DSDFLWRU&SURYLGHVD'&EORFNRQ
WKH LQSXW RI WKH /2$ & LV D 5) IUHTXHQF\ E\SDVV
FDSDFLWRU IRU WKH '& VXSSO\ OLQH / LV XVHG WXQH WKH
RXWSXWRIWKH/2$IRUORZVLGHRSHUDWLRQ:KHQWKLVLV
WKHFDVH&LVOHIWRSHQDQG&LVXVHGDVWKH5)E\SDVV
FDSDFLWRU
7KHPL[HULVDEDODQFHGIORDWLQJ)(7PL[HUWKDWSURYLGHV
H[FHSWLRQDO OLQHDULW\ DQG LVRODWLRQ ZLWK ORZ ORVV DQG
UHTXLUHVQR'&FXUUHQW
7KH LQSXW WR WKH VLQJOH DQGGLIIHUHQWLDO ,) DPSOLILHUV DUH
WXQHG XVLQJ WKH LQGXFWRU / 7KH RXWSXW LPSHGDQFH RI
WKHGLIIHUHQWLDO,)DPSOLILHULVPDWFKHGH[WHUQDOO\WRΩ
DWWKHGHVLUHG,)IUHTXHQF\ZLWK/&DQG&7KH
/LQGXFWRUVDOVRDFWDVWKH5)FKRNHVWRWKH'&VXSSO\
OLQHV,QDGGLWLRQWKH&FDSDFLWRUVDFWDVD'&EORFN
IRUWKHGLIIHUHQWLDO,)RXWSXWV6LPLODUO\WKHVLQJOHHQGHG
,) $PSOLILHU RXWSXW LV PDWFKHG WR
Ω
XVLQJ / &
DQG&/DOVRDFWVDVDQ5)FKRNHDQG&DFWVDVD
'& EORFN &DSDFLWRU & DQG & DUH ORZ IUHTXHQF\
E\SDVVFDSDFLWRUV6ZLWFKLQJEHWZHHQWKHGLIIHUHQWLDO,)
DPSOLILHU DQG WKH VLQJOH HQGHG ,) DPSOLILHU LV GRQH E\
SODFLQJ 9ROWV RQ WKH µ6HO¶ 0RGH 6HOHFW
SLQ DQG
SURYLGLQJ 9ROWV WR WKH µ)0 287¶ SLQ 7KH ,) 9
''
OLQHFDQUHPDLQDW9ROWV'LIIHUHQWLDOPRGHUHTXLUHV
9ROWV RQ WKH µ6HO¶ SLQ DQG µ)0 287¶ WR EH
9ROWV
,WLVUHFRPPHQGHGWKDWDOORIWKH'&VRXUFHOLQHVKDYHD
GHFRXSOLQJ FDSDFLWRU RI DW OHDVW X) SUHVHQW
VRPHZKHUH RQ WKH ERDUG 7KLV LV D VWDQGDUG RSHUDWLQJ
SURFHGXUH LQ PDQ\ KDQGVHWV 2PLVVLRQ RI WKHVH
GHFRXSOLQJ FDSDFLWRUV PD\ LPSDFW WKH GHYLFH
SHUIRUPDQFH
/RJLF7DEOHIRU$OO7KUHH0RGHV
RI2SHUDWLRQ
*DLQ6WDWH
+LJK
/RZ
$036
/1$6Z
6(/
)09
''
6SHFLILFDWLRQVVXEMHFWWRFKDQJHZLWKRXWQRWLFH
$VLD3DFLILF7HO)D[
9LVLWZZZPDFRPFRPIRUDGGLWLRQDOGDWDVKHHWVDQGSURGXFWLQIRUPDWLRQ