4. CAPITALIZATION
The following table sets forth KUE’s cash, cash equivalents and senior capitalization as of December 31,
2005:
@ onan actual basis; and
—® ona pro forma basis to give effect to the sale of $1 billion in Units in this offering by KUE after deducting estimated offering fees and estimated offering expenses payable by KUE.
You should read this table together with “Management's Discussion and Analysis of KLC’s Pro Forma Results of Operations” and the audited and unaudited consolidated financial statements and the related notes appearing elsewhere in this Memorandum. See “Related Party Transactions” for more information
on related party interests.
KUE Senior Capitalization
As of April 1, 2006 Actual _Adjustments' _ Pro Forma
Cash
KUE
KUE Inc.
KSI
KLC OpCo
KLC PropCo _ Total Cash
Debt
KUE”
KUE Inc.®
KLC OpCo — Sr. Sub. Notes KLC OpCo - Capital Leases KLC PropCo - CMBS
KLC PropCo - Junior Mezzanine*
Total Debt
Preferred Equity KUE®
Total Debt and Preferred Equity
' Assumes $50 million of fees and expenses.
$9.4 5.4 3.0 115.4 31.8 $164.9
$150.0 183.9 260.0 16.2 697.7 147.9 $1,455.7
180.0 $1,635.7
$800.0
$800.0
($150.0)
(180.0)
$809.4 5.4
3.0 115.4 31.8 $964.9
$0.0 183.9 260.0 16.2 697.7 147.9 $1,305.7
0.0 $1,305.7
? Upon closing, KUE LLC will contribute all of its assets to KUE. In addition, upon contribution of assets to KUE by KUE LLC, KUE will become a co-borrower to the KUE LLC term Joan which will be repaid with the proceeds of the offering.
3 includes capitalized interest of $10.7 million.
i Represents book value net of original issue discount plus capitalized interest. Original principal amount is $150 million. 5 Reflects the conversion of existing preferred limited partner units of KUE LLC into common limited partner units of KUE at the offering
price.
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