ML20212F707
| ML20212F707 | |
| Person / Time | |
|---|---|
| Site: | Perry  |
| Issue date: | 12/31/1985 |
| From: | Joseph F, Ron Linton DREXEL BURNHAM LAMBERT |
| To: | |
| Shared Package | |
| ML20212F471 | List: |
| References | |
| NUDOCS 8703050142 | |
| Download: ML20212F707 (60) | |
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- MANAGEMENT LETTER
- TO OUR CUENTS AND FRIENDS I
I in1985 Drexel Burnham Lambert achieved by for its most profitable year to date. Revenues set a new record, approximately doubling and surpassing the $2 billion mark. i Our capital base expanded from $560 million to nearly I $950 million at year-end, of which 76 percent was equity. l The book value of our stock appreciated 73 percent and the j numbsr of employees continued to cxpand, approaching g 8,000 worldwide. 3 - We believe this success is a direct result of our value-added 'A opproach to financial problem-solving. Through innovation, 1 individual tailoring, and a deep sense of commitment, we are s
- 1 helping our clients more effectively adapt to economic changes
~' and volatile financial markets. This year's Annual Review explores five fundamental themes in l our value-added approach, as exoressed by a representative group of our professionals from a wide spectrum of business creos. On the following pages they present their own views on how and why Drexel Burnham is well-positioned to provide ~~ consistently superior service. I Several senior management oppointments were announced in Robert E.Unton,Chainaan of the Board, Chairman of the Executive Committee i 198S. In Moy, coincident with Robart E. Lintor's sixtieth birthday, standing: Frederick H. Joseph, Chief Executive Officer,Vice Chairman of the Board the post of Chief Executive Officer was possed to Frederick H. f Joseph, previousl,- head of Corporate Finance. Mr. Joseph was a member of the Executive Committee with respor sibilities for the also elevated to Vice Chairman of the Board. Mr. Linton remains firm's investment Banking Division. l Chairman of the Board and of the Executive Committee. James These oppointments were made concurrently with the Bolog was appointed Vice Chairman with responsibilities for realignment of various line operations into three major business Individual lnvestor Services and Edwin Kantor was named Vice segments to accom-the firm's rapid and dramatic growth: Chairman in charge of Professional Investor Services. In addition, investn.ent Banking, Inc 21 Investor Services and Professional Herbert J. Bachelor was oppointed Executive Vice President and Investor Services. Investmer onking includes corporate finance 1 l
p cp 3 y SA .e, -s ea 3 m. c %- 0,,. so e. u-,0 v,< e ch.-a e. e sa ma and municipat finance activities. TFe Indmduc' Invest / Group Dre el Burnham emerged as o leading source of funds to finance includes retail securities brokerage, marketing and t'- asset leveraged buyouts, acquisitions and corporate financings, both in management businesses of the firm. The Professiona! vestor the pub!ic and private sectors. In private placement financings, Grovp enccmpasses tFe firrn's trading departments and inst.tu-the firm rose from sixth to second place in the rankings, raising tiene; sab s and research act. At;es. over 57.3 billion, an increase of 170 percent over 1984. In the area All areas cf the f.rm contributed to e s ssccessfoi,, ear. Tre cf rnergers and acquisitions, the combination of Drexel Burnham's Corporate Finarce and H:gh Yief d Bcod Departmor ts sccred flnoncing streng'hs and rnerger e>pertise led to participation in j impressive gains. In corpora'e finance tre f:rm ranked fifth in r any of tFe year's most noteworthy transactions. The number cf managed public offe: rings, lead manag og over $13.3 bH: ion in completed transactions was more than double that of the public underv.ritings for on increase of 27 percent over 1984. Fcr preceding year, and the dollar volurne of those transactions l 2 corporate issues managed or co-managed, we raised $16 bn!;on. completed cr pending at year-end exceeded $24 bH! ion.
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PROLOGUE By mid-morning, o vice president in the mergert. and acquisitions oreo is on the phone, discussing the legal implications of a tender defense. Next door, three people are planning strategies for the sale of a private company. Further down the hall, on associate confirms a prospectus sh;pment for o five-tiered financing, and o leveraged buyout specialist prepares a pro forma analysis for a company considering a management buyout. In the early ofternoon, municipal finance and leasing specialists are working together to lower the cost of financing on alternative energy project. A team of real estate professionals reviews the marketing materials for their upcoming public offering. And members of the Mortgage-Backed Securities Department meet with the manager of the Interest Rate Products Group to improve on institutional client's risk profile. it is 4:15 om Eastern time. Except for on occasional possing cab, Throughout the day, Drexel Burnham research analysts will the streets of New York's Upper East Side ore silent and deserted. hold meetings and reviev, their opinions about specific in on apartment high a bove street level, o man in shirtsleeves companies and industries. Private placemer t specialists will sits at a computer terminal with a phone in his hand. Af ter trading complete a transaction and initiate another. Corporate finance ( through the night on the Tokyo and Hong Kong exchange.s, he's specialists will plan on initial public offaring for o growing bringing London up-to-date on trading patterns in Treasuries. business and restructure the debt of a company in decline. By 7:30 cm, the trader is downtown, preparing for his final in over 40 offices across the U.S., Drexel Burnham account meeting of the doy vsith the heads of trading for equities, fixed-executives will guide thousands of investors toward their indivi-income, mortgage-backed, corporate, municipal, and rnoney dual objectives. They'll design strategies, make recommendo-market securities. tions, distribute research reports and place orders to help clients On the West Coast, it is 4:30 am. Traders and salesmen are take advantage of opportunities in global securities markets. seating themselves at desks lined with monitors and keyboards. In a typical day, Drexel Burnham serves the full spectrum Their telephone panels are aglow with flashing lights, and the of financial needs of corporations, institutions and individual room is humming with conversations among traders, solesmen, investors worldwide. Coordinating the efforts of dozens of clients, and contacts around the world. departments in 11 countries takes more than memos and in Zurich,it's early ofternoon. Although the gold market has telephones. It takes a spirit of teomwork and on extraordinary been calm all morning, impending political news could cause o sense cf commitment. That commitment is evident not only in the radical shift in the market. Drexel Burnham's open wire system analysis that goes into our work, but also in the tailored and keeps traders continuolly informed of trading activity and news erective solutions that come out of it. But most of all, it's evident in events throughout our worldwide network. our people. Drexel Burnham isn't on impersonal corporation. It's in London, on analyst presents information about the U.S. 8,000 dedicated individuals, each making valuable contributions automotive industry to a group of European investors. He distrib-to the financial community. utes a research report that has just been published in New York Our people have a lot to soy about how they do it. And on the and translated into several languages. following pages, o representative group of tliem does just that. At 8:30 om in New York, five members of the Corporate Finance No one con say more about performance at Drexel Burnham than Department are holding a breakfast meeting. A managing the people who are doing the icb. director explains a client's dilemmo and two proposed solutions. In the ensuing discussion o third approach emerges, and associates are assigned to determine the relative merits of each. 7
- Constant innovation is re.ognized as a basic requirement for~ - coping with the forces of c hange in today's capitol mor- - kets. It's precisely this innovative perspective that both sets us oport and keeps us o step ahead of our competition. ~ Drexel Burnham is widely recognized as the leader in innovative financial problem-solving.Whether that leadership is expressed as o new type of security, o new investment strategy, or new ways for corporations to raiso capitol, our opprooch is the some. Instood of looking of 'stonderd solutions or conventional wisdom, we focus on the ~- desired results and how to achieve them. hhh l Institutional Financial Futures "I think the secret of Drexel Burnham's innovative opproach lies in the firm's willingness to decentralize the corporate structure. This environment is made for creative, inventive minds. Nobody is going to define your limitations. lf we sense a market exists, then there is enormous support from monogement to develop any products that have value for our clients. There are no rigorous committee proposals. If you con prove it makes sense, you're given all the freedom in the world to make it go. "for example, here in Chicago we've developed and are selling a computer software package for accounting and regulatory reporting for financial futures. Nobody else is offering anything like it-even if they were creative enough to come up with it,it would be going through layers of cpproval from now until doomsday. Here, we thought of it; we showed management how it worked; and we got the go-ohead. Easy as that. "We're pioneers in the financial futures area. We've been in the business since the day it started over ten years ago, and, according to industry figures, we've been consistently of or very near the top in terms of dollar volume done in most of the contracts sace day one. Because we've been involved in writing contracts and serving on the boards of the exchanges, we have on insider's perspective not only of what works, but of why things fail when they do miss. "You've got to be continually developing new ideos to sustain a record of consistent performance. Assuming you've got the talent-creativity grows out of necessity." e Richard L Sondor, Senior Vice President, Chicago
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y:s:p 7.g% S (.Q :l.9 I MQ i: {R: V :- A :.:~..,- M. 2 4.:.;!.:;; p ^ l.c o m y ! :.G W-V . v. / : ; y,; ; p.s :N assume risk. Others should not. Our m.ission is to recommend l: h.q[h.[@ i[.M.7h appropriate kinds of securities. It's a matter of knowing your h [ N.h:?, ! 7l) [:(. ..h.,.e3.;-@, U N : $.;,7 client, his objectives and limitations and of knowing the market. .,.,,.... p.e.,- o m . ' }.f$g..e *:k,. ?, *. I ffd;.o ,=. e. e. 4 m... - + .g z :. y... s. i,. f#.0 m.,) 'J : g, 7 "At Drexel Burnham we use advanced mothematical techniques } f '; g q :. e] s..: y.,.g. :j ':l ;. 2 y.y.y g:. e.g;:_ g, ; M. to combine securities in new ways in order to maximize perform- _...y.... . -. j-
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Our creativity stems from our ability to analyze problems, devise [ A,h, n g%--Q,. p I Nk,.?-D.%p/e.y!: s g .. -.c4 f.e;; ;;; g,.:.; g ( 7 p.y. Q yJi g e G.J.Q[.N':.:i:a 'c.// h;.:.; ' 2:. 4.% &;2::: I[dN.3,[i. b...yyp,dakbh they're mothematicians or engineers-so the/ve got the know-how " People here tend to come from analytical backgrounds-N@h,;N f h
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2.; v.u... g..s w m ~ 9 ~ ~ % m. m. . w.s ... 3.v s a n, m." ~ the Drexel Burnham spirit of innovation, and let them go." Stephen D.Weinroth Kenneth H. Sullivon, Monoging Director Equity Trading Corporate Finance 'l think the words that best describe us are creativity, innovation, flexibility and teamwork. They con be clich6s-but they've been "The idea of issuing unrated commercial paper for middle market real at Drexel Burnham. We couldn't have achieved the position companies evolved from a brainstorming session in the early we have today without all of these forces working together. You 1980s. We were looking for ways to expond our product base can't be innovative without the ability to deliver. And you have to while capitalizing on our strength in the high yield bond market. have the flexibility to change that bell or odd this whistle to make We saw an opportunity to provide these companies with a ronge it all go. All these elements make it work-plus a lot of good, of financing alternatives that had been available only to smart people. America's largest corporations. "We try to figure out how to get a transaction done, rather than "Drexel Burnham comes up with creative solutions for a number focusing on the difficulty of getting it done. We try to anticipate of reasons. Nobody solues being hidebound here. People value the marketplace rather than reacting to it. We want to be in the imagination, even if i+ doesn't lead to on immediate transaction, forefront of the new products rather than to adapt them offer our because we realize that false starts are o necessary port of the competition. An example of this is in the options market where we creative process. cre the leading factor in o brand new area-index trading. Sophis- "Our clients are no hidebound either. They are entrepre-l ticated computer tools we deveioped enable us to measure volo-neurial, generally growing companies which are attracted to new { tility and thereby minimize risk. Being first is the hardest, cnd there techniques. They've us ed them to forge ahead :n their own are on owfullot of firsts at Drexel Burnham." businesses and they respect and admire them in others.' t i HoscrdM. Brennec hecutive Vice President Stephen D. Weinroth, Monoging Director il
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- Corporate Finance 1* Creativity is os necessary to marketing as it is to art e r any other -
'Drexel Burnham e ncourages innovations and mors importantly, endeavor. The rna rket's changing so fast that, like it or not, the old. nurtures their implementation. For example, the market for restruc- , tried-andtrue s6lutions just don't work anymore. That may mean turing public debt did not exist before 1981. Traditional investment . troubl;for firms that built their business on the old solutioris, but bankers believed that public debt could not be restructured - Lit's good news for us. outside or o bankruptcy. ~ People have seen us come up with unusual solutions that work, - "We pioneered the restructuring of public debt for troubled r ; so'now when the/ve got a porticularly knotty problem the/ll . companies through exchange offers. The new securities offered in bring it right to us. They know we'll approoch it in a new way, and exchange minimize the cash obligations of these componies and they know we won't quit until it's solved.The end result is that often pay interest in cash or common stock. The company is re-everyone involved in the transaction is better off than beforef lieved from making cash payments while the debt holder receives Richard J. Copofbo, Senior %ce President common stock that con be sold into the market immediately. "Since exchange offers allow companies to quickly adjust their Corporate Finance capital structure, healthy componies have also recognized the advantages of exchange offers in volatile financial markets to ~ ~W;/va done a number of innovative leasing transactions to restructure their balance sheets? financs equipment and facilities for difficult credits by isolating James A Schneidec Monoging Directoc Son Francisco ? ossets with exciting cash flow potential and utilizing them as capitol. International Trading and Capital Development 'Mora ottempted transactions are completed here than ' onywhere else, for two reasons. First, we have on aggressive, "Our group intermediates the opproximately $650 billion of debt ' innovative environment without a lot of bureaucracy, the kind of issued by developing and newly industrialized countries, most
- environment that encourages unusual deals. And second, we of which sells at a discount. Welook for value in these countries hava o better understanding of the markets. lf you have a sit-the some way one analyzes companies: first and foremost the uotion that is more complex and riskier than usual, we con do o qualityof management,followed byexportindustries, debt-to-bettir job of analyzing the risk, structuring a transaction that equitylevels and so on. We're pioneering this market in the some makts sense, and convincing investors of future returns!
way we developed the market for high yield corporate debt Donald R. Kendallk, Monoging Director ten years ago. "Drexel Burnham offers a unique combination of qualities to Preferred Stocks ~ deal successfully in this market. Our Corporate Finance Department has the capacity to originate and provide innovative
- "Wa don't o fer standorc' or prepackaged solutions. We believe solutions to complex trade and investment problems. Our high 8
th;re are possibly hundreds of ways to finance o company. By yield and convertible bond areas provide the trading ski lIs coming to Drexel Burnhori, o company doesn't simply receive the and knowledge of financial Instruments and investor preferences solution which on investm ent banking firm is best capable of to distribute the securities. Finally, our capitol base, geo-selling but rather one that provides the best financing alternative graphic distribution and commodity expertise provide the for tha company. Generali y, conventional investment wisdom necessary supportf willIead you nowhere. Wnen we do on underwriting, we don't Gerard B. Finneron, Senior Yce President-Intemational Trading and focus on yesterdo/s invest nents. If you are going to make a loan, CapitalDevelopment, Beverly Hills you have to determine whi:h company will be the stronger credit in th3 futuref ' Thomas Connors, Senior Yes President-PreferredStocks BeverlyHills 13
] Transactions cca the leading edge of market change demand -i criticalanalysis-notjustsuperficialtracking-if they're to be sucy essful over time. Through analysis we define risk and thereby minimize it. At Drexel Burnham, we're uniquely oble to onolyze changing markets, isolate risk and reach nontraditional solutions to help clients manage change.~ To make these solutions viable, we begin with analysis that's occurate and cc mplete. We examine markets, trends, companies, securities, risks, and opportunities from every J possible perspective. i Money Market Research "In a market environment with great volatility it is very difficult to provide a daily market letter os I do and continually put yourself on the line, but when you do it for several years and build up o track record, you become more confident in your judgments. "It is very satisfying to see profitable results from your forecasts, but it is even more rewarding to know that someone in New Zealand or Tokyo depends upon your information and it is the first source they turn to. To know that there are investors throughout the world who read your market comments religiously is worth all the effort you put into it on the nights you least want to do it. The most important tools in forecasting near-term trends are knowing the flows of information and whether they pertain to investment decisions, economic data or changes in expectations. The markets obsorb news extremely quickly and prices moveimmediately on perceptions of what may hoppen six months or one year chead. Being well-informed on domestic and international issues that offect investments in the United States or abroad adds value to fundamental analysis upon which we still have to rely. "The fact that I spend at least half of my time working closely with our trading areas ma kes me more sensitive to the needs of those individuals whose job it is to try to position themselves for the next 30 seconds, not the next year. Immediately analyzing all news with bottom line trading decisions in mind and making all the analysis-verbally or on the screens-easily available to our clients is a strength we have that our competitors do not." Mario Fiorini Ramirez, First Vice President, Money Market Economist 14
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Investment Research picture we see, we may reexamine our stance. In 1985 the more typical pottern was for the conclusions of our mocro analysis to "Our staff is responsible for analyzing congressic nol and be independently confirmed by bottom-up company analysis. executive bronch policy that could offect investors. Our function "Our investment policy is a distillation of all information avail-is to provide clients with a more in-depth understanding of oble, not just a good story. Some other firms have o resident guru, Washington policy developments than you'll see in the news-who senos down the ' revealed truth.' We pay keen attention to { paper, or anywhere else, for that matter. The experience and the facts but we don't merely compile and edit information. We knowledge of the staff help us anticipate new trends well in spend most of our efforts trying to odd value to this information through thoughtful analysis and the insights made availa ble by o I ,A O multidisciplined opproach! l Abby Joseph Cohen, Vice President-Research 3 inor pho,ogrops.ai / "When interviewing analyst candidates l'Il ask, 'What do you t i } ,g think is the most important role of an analyst?' They usually tell me it's to know your industry better than your competition, to write j definitive reports on the componies and to know those companies better than anybody else. A nd it's to travel and visit with the i clients. When I hear this response, I say,'Yes, all of that. But the I s real role, the only reason we're around,is to ma ke money for clients. Secur y analysis is more than on abstract pursuit of facts-
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" Clients know our position on a particular issue; there is no hemming and hawing. Clients don't want to read through a half pound of paper to find out where you stand. Ilike to think that Joanne Thornton our strength is finding more winners than losers. If ons of my ideas advance of their impact on the market. We offer continuous is not working out,I don't sleep at night? l coverage of over o dozen public policy areas, ranging from Terence M. York, Managing Director i health core to booking regulations. Our information enables clients to assess the effect of political developments on business Internationallnvestment Research and market psychcic,y and profit by it? Joanne Thomton, Vice Prosident-TM Wash',gton Forum "We make global markets accessible to our U.S. clients by providing useful economic, financial and stock market dato. As o " Investment policy decisions at Drexel Burnham are arrived at potential investor in foreign markets, local industry statistics aren't through on interactive process. It's both top-down and bottom-up. going to do you any good without on internationo! compor' son. OurInvestment Policy Committee arrives at a meeting of the We function as interpreters of the international markets, giving minds on economic issues and what we think will be the implico-clients a brooder perspective-and ideos that con make it pay off. tions for the financial markets. We then discuss these conclusions "There is on exchange of information with our domestic industry l l with our research analysts, who use them in evaluating the recom-analysts and our quantitative research group. In addition, we con l mendo.lons they are formulating on individual companies and provide clients with dividend discount models and relative histor-investment ideas. This is the ' top-down' part of the process. ical multiple comparisons, which evaluate each individual foreign "The second part of the policy process is the ' bottom-up' For market relative to others. The result is a comprehensive picture of f example,if our analysts are making recommendations on certain each industry on a global basisf i i 16 companies or industries that seem counter to the economic Rein von der Does, Vice President
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~ _ Thsrs's n2 boek cf answers et Drsxcl Burnh:m.Ws wsrk to ad:pt the spscific nacds cf a clisnt to the dsm:nds of ths j market. We form a thinking partnership with our clients. 1 The closer we get to understanding their objectives, the better our solutions become. Our efforts have led to new products and new standards in client service. They've made us more responsive, more odoptable, and more realistic in meeting our clients' l demands within the complexities of today's financial markets. l l t Individuallnvesting d
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I always try to keep in mind that, complex as the market appears to us,it's probably ten times as overwhelming to many of our clients.Therefore,I see part of my function as that of aninter-preter and one of the most important things I give clients is a concise, understondable explanation of various investments. With the help of other Drexel Burnham professionals,1 digest on enormous amount of information to give clients precisely what they need. " People have various degrees of tolerance to risk-on investment professional must probe to understand that and guide his or her client into structuring a portfolio they are comfort-able with. If you can't sleep at night, no amount of potential gain is worth it.1 made a vow when I came into this business that I would try to help people make the proper investment decisions-even if it means they should not invest at all. "Once I know my client, I can draw on all the resources Drexel Burnham offers to build a portfolio that meets specific objectives. Since we con provide a level of excel lence in a broad range of financial services, we don't ever have to settle for second best. The ability to make the perfect fit is what brought me to Drexel Burnham.' Brendo D. Neal, Senior Vice President-Investments 20
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hdermoeien Systems Corporate Financ2 "Th2 efficient use of technology pays off in better client support. ."We respond to our clients' needs in several ways. A client may 1 Access to computers and office automation enables the account . have a specific problem-he might want to build a new plant or . cxecutive, research analyst and trader to serve clients more repay bank debt, for instance-but what he usually wants is a . productively. Proper use of automation enables these profes-financing that hos the lowest cost consistent with being the most sionals to manage risk and tailor o portfolio to the client's goals. flexible instrument possible. Generally these are two competing - "What we really have developed is the successful integration . desires.We present a number of alternatives and try to get a feel
- of technology and p.ofessional management.We've created the from the client for which one would work best for him. -
tools to do o better job in helping clients reach investment "We do our homework and suggest appropriate new financial decisions. Making all of this work together pays offf - instruments for which there seems to be o demand on the buy Wiliam E Tuite, Senior Vice President side. Because of our innovative approoch to financings, we con offer a variety of unique financial products to middle market investment Research companies and present them with more options than they would find at anotherinvestment bank. "Wa stocked up all the equity research published by the firm in "On Wall Street, there's a definite perception of Drexel ona year and it was taller than i om. Account executives couldn't Burnham os a company that moves fast to respond to client digtst all that and still have time to give clients effective service. needs. The energy area, for instance, was tough to finance in "The liaison Group markets the research prt duct of the firm's 1985, but we raised several billion dollars in merger-ond acquisi-investment analysts to our 1,200 occount executives. Our job is to tion-related financings for companies in a difficult market environ-point each account executive toward the part of our overall dato ment-in scme cases in just a few days. We did it by tailoring our that's important to his or her accounts-both maintenance infor-transactions to the needs of both the issuers and purchasersf motion and new recommendations. We highlight the information John ESorte,Monoging Director thsy need, so they con serve clients quickly and efficiently without g:tting bogged down in a paper chosef Foreign Exchange lo Anne Loird, Vice President-Research "In the foreign exchange markets, where hundreJs of millions of Harbor Trust Company dollars change hands within seconds, one of Drexel Burnhom's strengths is our flexibility. We're more nimble than larger insti- -."Wa could try to be all things to oli people, but we don't feel tutions which may be impeded by organizational hurdles or that's the best way to serve our clients. We conduct ongoing internal red tape. Drawing on Drexel Burnham's expertise in the sxplorations of various markets to gain a clearer understanding commodities, financial futures, international equities and U.S. of investors' needs. We want to provide a 'hossle-free' environ-bond markets to glean insights and trading ideos for our foreign msnt by developing products that make it easier to cope with the exchange clients, we tailor our services to meet clients' objectives. constant changes in tax laws and government regulations. "Unlike many other institutions, we con execute transactions in "The morale of our people is reflected in the way they handle all of the markets where foreign exchange-related instruments thtir jobs and the quality of service they provide for clients. I'm trade. Each of these markets presents different opportunities and continually asking my staff,'Are you satisfied?'l want them to find risks which we examine in helping our clients to identify and satisfaction in their jobs, of course. But I also want them to be execute the most cost. effective currency risk management constantly thinking a bout whether thepre satisfied with the way strategies? ws serve clients-or whether there are ways to do things better" Robin Bauer, Vice President-Foreign & change Brian T McGid Chief becutive O$cer-Harbor Trust Company 24
i oreo with the most intense and carefully focused research on the Street. "To my knowledge, we are one of the few firms that has a j deportment that focuses specifically on the analysis of the futures i j markets relative to the cash markets. Because our research is e t. more focused, we're able to give our clients better, more specific counseling in their futures activities. Financial futures markets are f offected by many factors, and it's amazing that other firms try to get by with only the most general market research and statisticsf j Normon E. Moins, First Vice President-Financial Futures, Chicago l l l Interest Rate Products l l l I "We are here to provide clients with innovative, cost-effective strategies that reduce their intersst rate and currency exposure I while allowing them to exploit market opportunities. We have on extensive product menu including swops, options and reinvest-t I ment programs. We are widely known as market-makers in all of 'l i these products, but are best known for transactions that combine these products in unique ways. We also customize products, or even invent new ones, to meet specific necds. Norman E. Moins, Howard Sosin "Our opproach is to develop on in-depth understanding of a Municipal Finance client's business. This enables us to pinpoint risks a client might not recognize and help him manage these risks. We find problems l "This is a people-oriented business, and Drexel Burnham's and commit ourselves to creating solutions." { opproach is to develop ongoing relationships in which we fully HowardSosin, Senior Vice President satisfy our clients by devising tailored solutions for their needs. Our investment banking teams are fluid. We try to match the par-Individuallnvesting I ticular financing situation and client with the right team of investment bankers. "As a general rule at most firms, account executives are essentially "We don't try to sell them on a prepackaged product. We order-takers. They're working with a limited amount of informa-examine the financing situation, offer our understanding of it, then tion, and they take it 'off the shelf' for every customer who walks ask the client to discuss his or her understanding of the demands through the door. At Drexel Burnham, we give each account and challenge, of the project. We work together with our client, executive complete access to the firm's resources and help as a thinking partnership, to devise solutions to meet their partic-provide him or her with the support necessary to sort through a Ular needs. It's a process of givMnd-toker huge amount of information and come up with the best recom-Kenneth E. Glovec Monoging Director mendations for each individual investor. "In effect, the Drexel Burnham account executive functions os a Institutional Financial Futures financial advisor rather than just a clerk. He doesn't sell you a prepackaged product; he designs it to your specifications and "To effectively tailor 'nvestment strategies to institutional investors, investment objectives! you must do o more complete analysis than if you were offering Kurt Kormin, Senior Vice President, Chicago IW pho'og*aphed standard solutions. Our financial Futures Division excels in this 25 l l
F Everyone who comes to work at Drexel Burnham is driven. Driven by the need to give their clients the kind of superior performance that a changing global market demanels. Doing the best job means covering world markets 24 hours a day, providing the most thorough analysis, delivering the best services, or structuring the best transaction. lt's the spirit of the firm that gets it accomplished. Commitment isn't just on attribute of our firm. It's on aspect of our people. It's their motivation, their dedication and their concern for the individual needs of our clients. Government Securities "Drexel Burnham is one of only a handful of primary government securities dealers who enjoy significant market penetration. The research and trading commitment required to maintain this level of client service is quite a challenge. In the next year we expect the number of primary dealers to increase by 50 percent. No doubt this means we will have to work that much harder to stay at the top, but we thrive on such challenges. " Government securities isn't the kind of business you can walk oway from of five o' clock. It's a 24 hour job and it's my hobby. If l'm not at my desk here,I'm usually speaking to Tokyo or London from my home. In fact, our traders regularly participate in transac-tions that occur when the New York markets are closed. 'You have to be very innovative to attract customers in this market. The 20 or so professionals who work with me combine innovation, experience and the commitment it takes to help clients make sound decisions about their portfolios.
- Because each of our traders is a highly skilled professionalin his own right, we're uniquely qualified to make split-second deci-sions that con benefit our clients. Every one of them can stand alone if they have to-but they also know we're stronger when we stond together. I'm proud of the way our people work toward common goals-both within the department and within the firm as l
a whole. This helps to give us the edge over everyone else i out there.' l l Michael (JacM Kugler Vice Chairman, Chief 6ecuhve Officer-l Drevel Burnham lambert Government Secunhes Inc. 26
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rewards. For people to invest, they had to believe in the management team and their ability to successfully reposition the } y company in the future. Drexel Burnham's commitment to work with I o client to develop unusuol solutions to difficult problems paid off l s y { for both the clieat and the investors. Everybody had a good I experience. Sometimes doing something in a major fashion is the right onswer." J John H. Kissick, Monoging Director, Beverly Holls I .V Investment Advisory ' Clients give us on investment objective-for instance, they want f their pension funds to outperform the bond market as a whole-l / ond we try to outperform both the bond market and the clients' objective. It's quite a challenge, but we usually do it. "Our performance hos consistently added value to our clients' portfolios in the most literal sense of the word. But what makes Drexel Burnham really exceptional is our obility to add value without risk. In many cases we actually reduce risk. "Why are we so successful? We have one of the best credit analysis capabilities, better than overage timing and a superior l I John H. Essick I understanding of the intrinsic value of bonds with various Corporate Finance features.We also have o long history of successful strategies-i and are willing to try new things. We're on the cutting edge of "Drexel Burnham has always attempted to structure and sell investment strategy and that's a good place to be" r securities by stressing that static numbers and traditional Roben J. % tole, first Mce President, Philadelphia approaches to looking at companies are not the best way to [ l achieve the highest rewards. We believe the more critical ingre-Institutional Sales dients in security analysis are management strengths and what these strengths con do for o company.
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- When we worked with Wickes Companies, for instance, the horder than our competitors, and we do. But what sets us oport r
company had just come out of bankruptcy with a new on the equity side is that our main focus has been to try to make l management team that had performed a hat trick in doing a money for our clients, and we've done that. The Priority Selec. major reorganization and realignment of their capitalization, tion List, which contains the 30 top.roted stocks from the firm's Good management had made the company viable. Research Department, was up 44 percent in 1985 versus the S&P "Wickes wanted to make a major acquisition, not ivst a series 500, which was up about 26 percent. Our investment strategy of small acquisitions. I think most investment bankers would not has been right on target and the stock selection based on have had the gumption or the guts or the vision, or the ability, to that strategy has been outstanding. merge Gulf + Wcstern's industrial group with Wickes. It was "If you don't add incremental value, then there's no reo;on for daring and it was big and most people would have feared the you to be in business. We try to add value every day through our failure of not being able to close the transaction successfully. But investment comments, matching our products and services to we said,'Let's go for something that really makes sense.'in this meet our clients' needs, and working horder with on extra 28 instance the bigger transaction actually had lower risk and higt er telephone call, meeting or special note. The bottom line is very
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Individuelinvesting "The tofonts and leadership abilities of Drexel Burnham's 4 managers are crucial to the firm's success in providing clients with effective service. Our bronch office managers spend less time as odministrators and more time os leaders. Greater efforts are 'A l Continually being mode to train and motivate ocCount executives which results in greater benefits to our clients. x "We constantly strive to provide our account executives with information needed to provide top level service. for example, managers conduct a daily ' impact meeting' to discuss the latest I research findings and investment opportunities. And, to maintain up-to the-minute contact with rnorket activities, account execu-I J tives hear a continual flow of topical comments on Drexeline, an 1 j inte rnal communications system. 1
- Invigorated leadership and informed and motivated account JeanSerre Buri, Brw e 1 Trwer executives are all part of the firm's effort to deliver more effective service to our clients. A con-do attitude lets us aim for ever formed benchmark overages for the industry by 40 to 50 basis higher levels of performancef points for the year.
Nelson R. Schdf, Senior Vice Pres, dent "We are often in a position to offer assistance in the form of i l j product flexibility and customer service to complement our f InternationalCapitalMarkets expertise in portfolio monogement. All this translates into better f L overall service and performance for clients?
- We don't just publish research and execute trades. We provide Bruce 1. Trott,er, Senior V,ce President-DreielMonagement Corporation i
financial management and advice. The bottom line is to improve the client's performance. Each of our professionals is fully com-Commodities j mitted to responding to our client's needs, all the way through a trade. Traders, salesmen, research analysts and economists all sit "The strength of the Drexel Burnham Lambert Trading Corporation t together in the trading room, plugged into the minute-to-minute is that it's managed by traders. Senior traders are on the desk all l activity. When a salesman is talking to o client who wants to talk day running the major positions, so our clients are Interacting l l to the head trader, there will be o three-way conversation. lf the directly with our top people. Other firms make management client wants information from a research professional, he'll join trainees work on the trading desk for a few months os part of their h the conversation and work with the others to answer the client's training. We don't believe in that. Everyone here sees trading as l i J questions and assist in making investment decisions? their career. I fcon P,crre Bun. Semor Vice Pmsident, London "We don't make any distinction between trading and sales. You can't sell something unless you understand how it trades, and lnvestment Management you can't trade worth a damn unless you can interact with customers. So you better be good at both. "When looking at money funds or other types of mutual funds, "This is a no frills place-you've got to be in order to be price we add value through our ability to perform within the context of competitive. We jump through hoops to do the trados our clients negligible risk. We manage all of our portfolios actively but very want to do, and we always remember that without them, f Conservatively, we'd be just overhead and warm bodies? "Overall yield in any portfolio is the bottom line. We've outper-RobertM fuben, President-DreneIBo,nhomlombcrt Trading Corporat,on 31 %,rc,.og,# e
Working togehr is b foundation of our success. At Drexel Bornham, teamwork reaches beyond h boundaries of any single department or discipline. it is a firmwide exchange of information and ideas ht is essential to A efficient bondling of transactions. By pooling our resources, we're able to deliver both innovative solutions and superior performance to oll our clients. K QgQg($ Mertgage Bocked Securities "The trading desk interacts closely with a number of areas to assure customers get the best execution. Our people have vary-Ins backgrounds with a wide range of experiences. They are ready to apply new solutions to difficult problems. We meet daily with the mortgage research unit to anticipate client needs and expectatior's. We not only want to come up with the best ideas but also to accommodate customers' trading requirements. Typl-cally, we attempt to position clients in certain sectors of the mort-gage market in on effort to obtain maximum oppreciation in on up market and the greatest capital preservation in a down market. Close coordination Internally assures that Drexel Burnham con keep pace with the growth in breadth and complexity of the market. The synergism that exists between the trading desk, the research department and the mortgage finance area ensures that if a problem is solvable, we will do it. "I think the firm as a whole reflects this philosophy. We do on enormous volume at our desk. Trades of $100 million are not unusual. Frequently, we wor k with the government or corporate desk in executing such trades. Drexel Burnham allows me to handle these transactions without a lot of structured direction from management. But if I need anything all i have to do is ask. "I thirik part of working together as a team is knowing when to stay out of each other's way and accepting there is never one 'right' solution.1 never dictate what our traders should do.1 set goals and encourage them to discover new ways to accomplish these goals. This pays off in innovative ideas for clients.' 32 Thomas K Gulx2. Senior Yce besident
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i "No one person is responsible for any of the successes we've ochieved. ) work closely with our trading departments, our syndi-cote people, our institutional orid retail soles forces, our analysts covering the thrift industry, and tho management of our firm. A successfully managed offering is an all-team effort. l "The Mortgage-Backed Securities Department has integrated Investment banking, research, sales and trading in order to i l provide our clients with all the services they require. The continu-ous interaction of these groups leads to greater creativity in l problem solving and in achieving our clients' goals. l "There's on incredible ' con-do' attitude here. People find ways to get a deal done. For example, when we wont to do on exchange offer for one of our clients, people throughout the firm will assist in the structuring and execution of the transaction. There's a wonderful openness here and a willingness to be helpful that exists at all levels of the organization. it makes my lob easier-it lets me get things done for my client? Leslie M. Hannofey Managmg Dorector I Municipal Finance = t. "Each Wall Street firm has its own personality. Drexel Burnham has an eclectic image, and, at the some time, o special attitude of service. We're not there just for the one shot deals we want to be there for the long houl. The only way you con serve a client's best interests is to use a dedicated team concept. Not just from within the municipal finance area, but within the investment banking division and the firm a s a whole. "We look at the unde, writer as the captain of the financing team. We try to educate the client and other financing team participants-lawyers, lenders, and states and municipalities-on t *** M N=*v. ve N (** what is available out there. "When you are choosing an investment banking firm, you are not buying hard assets. You are buying ' thinking' assets. And those assets are the people. Our people understand the sensitivi-ties of establishing and managing a long-term relationship which benefits the client by allowing us to know him and his needs in depthf Vctar N lee, Monogong Dor < tot, lc2 Angeles 34 i
~~~^ ~ ~~ - Unvostmsnt {2essercLb ~~ ~ ~~~~~ i i i l l "There are about six to eight major firms at the core of the market-l f making function on Wall Street. Drexel Burnham is one of these firms.1 find I spend a great deal of time speaking to the people 1 who are octually making markets of our firm. Tapping into that nexus of information, I'm oble to find out what's happening and make o forecast about the future. Working of Drexel Burnham,I'm oble to access the vast information sources availablo here, and that gives me a clear competitive advantage in interpreting trends in the economy and the markets. "From o people perspective, one of the firm's most valuable assets is the willingness to shore information. If I ask a question, I know the peop!e here will do everything in their power to answer it. And they know I'll do the some for them, whenever they need help. People here trust each other. There's a real spirit of working together that makes this firm tick? Richard B. Hoey Forst Vice President, Chief Economist
- A group of senior people in our department comprise the stock selection committee. The committee puts people with different backgrounds together to give vs the edge in market judgment I
and experience. No one, including the most senior analyst here, con recommend a stock without the backing of the stock selection committee. That's not a standard practice. At most firms, the analyst alone makes the decision. ' Mony times we're able to find a trend in one industry or some-thing that's going on in the economy that will present opportuni-ties in other creas which on analyst, working alone, could easily miss. For instance, corporate restructuring in the food industry has had ramifications for a variety of other industries. We were able I a.m,a s. no.uan s or.*' to find them and take advantage of them. "There are two kinds of teomwork happening here. The invest-rqent policy committee works together In a formal way, but what males us tick is the tremendous amount of informalinteraction l between specialists in the different orcos, "At Drnnel Burnham, we're surrounded by unusually bright, talented people in overy department. To work hero ar.d not take advantage of them would be like living in a library and never l reading a book? l Alan S. Gwd tar, Monog<ng D,rcaar i i i
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- When you're working in the international marketplace, you're "Insead of a lot of independent traders, we have an entire group always on the line representing the firm, and you're always working towards one goal. We have a freer exchange of informa-regarded as a member of the Drexel Burnham team, tion, and our positions are better coordinated.
' Teamwork starts very early in the morning when I place o "We work together for two reasons, one, because we like each phone call from my home to New York to be briefed on how the other, but, more important, because we recognize the necessity of market did that day. When I arrive at the o4 ice and see what's it. The complexity of the market is so great that information happening in the Japanese markets, I call our head traders in obtained from the peripherol rr,arkets is now obsolutely neces-New York at their homes. During the day, we exchange informa-sory. lf you cut yourself off, ys u not only have on ego problem, tion with our offices in Hong Kong and Singapore and in the I think you have an intelligenc e problem. afternoon, we check in with convertible securities, Eurobond and "The truly unique thing about l'rexel Burnham is that when foreign currency traders in London. Our traders are exchanging someone sees something that is going to affect another segment j information literally 24 hours a day. of the market they make it their business to get thatinformation to the appropriate person. Wher you know there's a team like that l behind you, you trade with a higher level of confidence.' h Wlham S. Coleman. President-Drexel Bumham Lambert ',. 4 Government Secunties I i Ec,vity Trading t i "The trading toom work s a lot like a basketball team. We're con-stantly passing the ball back and forth, taking shots and chang-Ing our strategy. For example, we're in the process of expanding our group to better coordinate soles, research and trading efforts. All players get constant Intelligence from the fixed income, the futures and options markets-everything they need to perform i ~ for clients. i "The concept of teamwork on the trading desk extends to our [ L branch network. We're impmving communications and have [ i o...~. w.,am installed a direct, open line to cil the branches. Everyone on this [ 'Doing busine,s in Japan O ves one o different orientation line con hear everyone else, so we all have a working knowledge l toward teamwork than most people oro accustomed to in the of what's happening in every location. When you're off in the ( United States. The Japanese have a proverb that goes, 'The noil branches, sometimes you feel hko you're in the hinterlands. We I that sticks up g#ts hammered down. The Japanese, who oro hard. want all our traders to feel that they're part of the team. [veryone l t working and dedicated people, direct their effort solely towards has the same product knowledge simultaneously. I the firm's success. To them, Individual performance is only impor. 'That's important because we are in the front line, acting as the tant in the contcut of the optimal performance of the firm as a clients' eyes and cars to provide them with better service in short, l whole. Drowl Burnhom's crientation is very simiior to that." we have an immediate and responsive feedback system that lawrence fomeranf4 W e Pir odent, Teig) produces the team effort necessary for all of us to stay on top of the market To improve our senses is to improve our service.' G foter furnm. Senior W e Prevdent 38
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t RESOURCES AND MAJOR ACTMTIES ~ ~- INVESTMENT BANKING COMPOUND GROWTH RATE PRODUCT BREADTH OF UNDERWRITINGS,1980-1985 CORPORATE FINANCE Drenel Burnhom lombert's position as one If$e of Wall Street's top five underwriters was nacent nectst c:nfirmed in1985.We extended the ion m suesnamta uar 6. snuo.,r mr n breadth of our capital-ro: sing capabil-suouoswornus 3 convnr:att our si i itles with on expanded list of products mstnostos ao purs n 4 and services. During the post year, sootouw sacHs se mrtmo stoca e Drexel Burnhomi surent tvncn i, coucosstoca ar is O Surpossed all it: previous capitol- %,.a.nm w., s.ooi s.,- m,4rinactueurs si i, raising records. The firm lead managed unOns AND AcQU19tCNs 6$ more than $20.6 billion in the public and offering foro majoroilcompany.Our m im private corporate markets, on increase share of the equity market increased sig-s.,,,o o, in e w of more than 50 percent over1984. nificantly, from 3.8 percent to 5.3 percent. O Rolsed $9 billion in 110 issues for Indus. O Ranked second in number ofinitial triol componies, o greater number of public offerings. for executing exchange offers to meet a lssues than any other Wall Street firm. O Registered a 260 percent increase in vorletyof financialoblectivesincluding O Underwrote tho torgest debt offering of volume in the creo of convertible debt, to corporate restructurings, tha year, a $1.2 billion Issue of notes and $1.2 billion, debentures for o molor communicottons O Continued to rank first as manager in the SYNDICATE company. Overol!, wo had u 10 percent area of unit of ferings with debt and equity The Syndicate Department offers on shore of the strolght debt market. components, raising over $750 million. extensive capacity for domestic and Inter-O Rolsed more than $1.3 billion in 38 com-D More than tripled its preferred stock national distribution of securities, enabl. mon stock issues, including a unit ofledng. volume to over $800 million. Ing us to complete offorings in difficult Drexel Burnham lead managed the third O Acted aslead agent for over $7.3 markets for a diverse group of companies. I:roest equity deal of 1985, a $416 million billion in private placements of various in 1985, our Syndicate Department eape-types of securities, ranking the firm second rienced continued growth and distributed in this market, up from sixth place in 1984. 171 public offerings which Dronel Burnham INDUSTRIAL OfI[ RINGS,1985 Our Corporate Finance Deportment has lead monoged with a market volvein [*f888 established a reputation for responding to escess of $13.3 billion, isswons mois changing economic and financial circum-stoxes with Innovative financin0 strot-COMMERCIAL PAPER isa m m uorn m io, n egles. For example, Drexel Burnham Drexel Burnham pioneered a program to no _ onm ovennami_a net _- so with registration ri hts os a moons of facil-mid slied growth componies that had ~ 0 s unnover s u .e sem wwon 4e i~ ltating mer0er and acquisition transac-previously been excluded from the com-suceua8swate 4i as tions and leveraged buyouts. We continue mercloi paper market. An increasing num-to expond the horltons of customlied ber of corporations are finding that this isni4ewmtnuaN uotnos se 41 financings, of fering our clients new Instru-kind of unsecured debt offers significant e m is naenov ni is ew a s4c miansurnau in 24 ments such os zero coupon extendible advantages over bank borrowing. A totof notes and increasing rate notes. Drexel of more than $2 billion hos been issued imu vvnwe n 40 $~""""'******* Burnham has also developed a reputation under the commerclof paper program.
m =. Merger and ocquisition activity figured MUNICIPAL UNDERWRITINGS monogement and investment banking. prominently in the hoodlines throughout ismuom Our research report, "The International L 1965, and Drexel Burnham played a maior ' was na investment Monthlyf contains analyses of role in this sector. The combination of wu - ei foreign markets and specific stock recom-Drexel Burnhom's financing strengths and we u mendations within each market. Our merger expertise led to participotion uo.e manas.m ndc reports on relative international market in many of the yeo/s most noteworthy 5" 5"* D"* C*'*""* performance provide clients with compre-fronsoctions. The number of completed hensive information for their foreign Invest-tronsactions was more than double that of establishment of offices in Atlanto and ments. Drexel Burnham continues to be o the preceding year, and the dollar value Salt loke City. The hiring of odditional leading source of information on gold and of those transactions completed or pend-experienced professionals raises the gold mining componies and monitors the !Ing ct year'end exceeded $24 billion. number of municipal finance profession-impact of foreign currency fluctuations on als to over 90. International corporations. INTERNATIONAL ACTIVITIES We continue to structure and market OThe Fixed Income Research Group In 1985, Drexel Burnhom increased its ' Issues for institutions in the oreos of higher issues o vorlety of reports on monetary ' presence overseas and is serving on education, single and multifomilyhous-ond fiscal policy to assist in forecasting expanding middle market of lost grow. Ing, health core, industrial development, trends in the money and capitol markets, ing componies in Europe. Our London. pollution control, transportation, public Extensive onalysis of tax-exempt securities based professionols provide a full range power and water and waste control. is provided through our municipal bond ' of corporate finance services including - research effort, raising capitol using debt and equity O Drexel Burnhom's Washington, D.C.. Instruments in both the U.S. and European based research group, the Washington markets, and International merger and Forum,is o valuable resource for monitor-ocquisition services. Ing the government's administrative, INVESTMENT RESEARCH legislative and regulator y octivities and REAL ESTATE their impact on investments. In 1985, for the third consecutive year, Drexel Burnham Lambert consistently rank: Drexel Burnham raised more money pub-omong the leading research offorts on licly for real estate componles than any Wall Street, molntolning a top ten other Wall Street firm. We rolsed opproxi-position in both the Inst 4tutionallnvestor motely $3.5 billion for a broad spectrum All Americo Research Team and the of issuers including home builders, real Greenwich Research polls. In recent INDIVIDUALINVESTING estate developers, syndicators, Real years, os dramatic changes have swept Estate Investment Trusts IRElis) and real the financlot markets, our investment Drexel Burnham Lombert serves the indi-estat servicecompanies. research hos evolved and grown in vidual investor through its 1,200 occount The Real Estate Groupis a leaderin response to client needs. executives throughout the United States, securitizing commerclol mortgages, rais-O To support its research offorts, Drexel in 1985 new bronch oflices in Detroit, Ing cbout $461 million in 1985. In Decem-Bumhom spent more than $20 million Michigoni Newport Beach, Californlos ber,we rolsed $146 million for one of in 1985. Fortyfive senior security analysts and Orfondo, Florido, were opened. the nation's largest real estate developers follow 550 componies, Issuing compre. Several other offices were substantially in ene cf the first publicly offored Issues of hensive reports. exponded. in addition, to provide increas-participating first mortgage bonds. O Our stock recommendations originate Ingly of ficient service to our clients, we in addition, during the year, Drexel with the firm's investment Policy Commit-realigned the branch office systeminto Bumham Lambert Roolty syndicated more tee, which approves and monitors all three reglons, covering the Eastern,Centrol than $500 million worth of root estate, pro-recommendations. Economic, monetary, and Western sections of the United States. viding Investment opportunities for clients political, quantitative and fundamental O Training programs continue to be on including ton odvantaged and income-dato oro processed in order to generate integral port of our plans to provide producing public and private property on equity investment position for the firm. premium service to investors. The Branch syndicitions. in addition, Drexel Burnham O The Quontitative Research Group, Manager leadership Program focuses on lambert Realty coreplated four mojor sole-organized in 1984 Into o division of Drexel soles monogement strategies, while exten. leasebock transactions volved of a total Burnham colled the DAIS IDecision Anot-sive follow up progroms for account exec-of $237 million, ysis investment Systems) Group, hos unves provide updated Information on esponded the computer based research new financlol services. MUNICIPAL flNANCE capabilities of the firm. The group's eaten-O Brood Street Productions, the firm's Our penetration of the municipal finance sive equity dato bases and volvation award winning video division, provides i marketplace continued to espond in models provide Institutional clients with our account executives as wellas 1965 with financing activities increasing Insight into company fundamentals, mor-clients with videotopos on new invest-by nearly 150 percent. last yeo/s acqul-Let espectations and stock voluotion for ment vehicles, sition of KirchnerMoore & Ccmpany, identilying Investment opportunities in the O Dronellne, o new internal communico-o Denverbased investment banking com-competitive equity markets. tions/ soles support system, provides pony, and the opening of regional oflices O the International Research Oroup, market updates and Information direct In Philodelphlo, Chicago,los Angeles which tracki securities in all major markets from the trading floor vio spooker on our and Puerto Rico were followed by the obroad, esponded its coveroge to meet account executives' desks. 4
=_. ~ Port olio Monogement IAMPM), o nondis-INDIVIDUAL ACCOUNT GROppf options, trading th2 British pound, Swiss 8 cretionary monogement service that ^ NU N fronC and French franc on the Philo-allows investors to toilor their municipal ms 2 9.889 delphia Exchange. m. i9e.m O Our OTC Department c:ntinues to rank bond investments to their own objectives. i9u ia2.ca omong the top market-makers in the AMPM maximizes portfo!io performance m2 i w sr industry in both execution and block by utilizing specialized techniques and mi ionso handling. The Institutional Block Trading products such as bond swapping, zero coupon bonds and put bonds to take od-s.,o o.a.,+.**.,, creo broodened its service to the profes-vontoge of changing market conditions. sional community. An exponded stoff of O Drexel Monogement Corporation's traders in New York, Atlanto, Boston, short-term assets increased from $1.5 bil-Chicago, Dollos, Los Angeles and San tion in 1984 to over $2 billion in 1985. The Francisco, has succeeded in enhancing Money Market and Government Securi-the firm's market shore in the primary ties portfolios of the DBL Cash Fund were INSTITUTIONALINVESTING capitol centers around the U.S. among the highest yielding money market O ln the area of International Arbitroge, funds in the industry. Drexel Management Drexel Burnham Lambert continues to the firm hos expanded its porticipation in Corporation introduced Drexel Series increase its capital commitment to the trading and selling of foreign securi-Trust, o mutual fund consisting of seven institutionalinvestors worldwide. An ties domestically and internationally, individually managed portfolios. Eoch account team, ossigned to each client, Series is designed to achieve o difforent works closely with our Research and investment objective. Trading Departments, relaying timely O Harbor Trust Company, formerly Drexel informatien and investment iJeos. Theso Trust Company, introduced a Trust Lloison activiCes are supported by the most Center to provide odditional support to advanced commwicotions systems, en-MARKET-MAKING: the growing retirement products market. obling our Fixed income and Equity FIXEDINCOME SECURITIES The Trust Company currently serves over Deportments to provide tailored informo-47,000 occounts and holds over $700 tion to each occount. Drexel Bumham Lombert is a mojor under-million in assets. Drexel Financial Systems writer and market maker in all sectors of Corporation, the financlot planning arm the fixed Income market. The Taxable of thefirm,becomeo partof theTrust Fixed income Sales Group, organized on Company to better serve the personal o regional basis, has oflices in Atlanto, trust, tox, estate and long range financlot Mn, Chicago, Dollos,los Ange'es, pl:nning needs of our clients. MARKET MAKINGi EQUITY SECURITIES NewYork and Son Francisco.The sales O ln 1985 the Unit Investment Trust Deport-professionals are expert in all fixed ment continued to sponsor investment Drexel Burnham Lambert makes markets income Instruments, including government vehiclesin conjunction with our Tax in more than 1,000 equity and equity-securities, corporate bonds and mort-Exempt Securities Trust ITESil program. linked securities. In 1985 we continued to gage-backed securities. We of fer short, Intermediate and long-penetrate the market, providing consis-OThe Corporcte Bond Department has term maturity TEST products, as well as tently high levels of service to both institu-established a wider and more compre-l;ng term portfolios fully insured as to tions and Individuals. Coordination hensive distribution system. Improved principal and interest payments by the between on account team assigned spe-occount coverage, coupled with on ex-Municipal Bond Insurance Association. cifically to each client and the Research ponded trading operation, provides We continue to sponsor our own and Trading Departments occurs not only increased competitive porticipation in 01: unit investment trust, High income Trust from our headquartersin NewYork but orcos of the corporate bond market. Securities IHilS1, o flied portfolio of also from our 1" reglonal centers through-0 Our subsidiary, Drenel Burnham high yle!d corporate bonds, and of for out the country. Lambert Government Securities lx. Fixed Income TrustIFITIZero Coupon O Options continue to be onimportant IDBl/GSil, makes markets in U.S. Treasury Series, which is designed for IRA., Keoghs investment product for Drexel Burnham, and Federal Agency securities. The and pension plans to provide a high With more than 70 prof essionals in trod-firm otso molntolns strong presence in the yleid from high quality corporate zero Ing and research functions, the firm is money markets through its activities coupon bonds, o major force in the market for both Institu-in bank liability Ic struments, Interest rate Oln1985 DrenelBumhom Real Estate tionalandindividuallnvestors Options swaps ond motched book troding. Assoclotes rnode its most successful of for to Indusery growth in 1985 was primarily in Responding to the increasingly global dote, with a third public limited portnership the broad based Indices, reaching 50 per-orientation of the marketplace, we fund, available excludvely to clients, centof thetotalIndustryof year end,in have esponded our operations in London O ln early 1986 the firm introduced T he 1985 we were awarded the speclollst post and Tokyo to ensure full service copo-Fenimore Intemohonal Fund, on open =end for the VolvelineInden on the Philo-bilities on a 24 hour-o day basis, mutual fund that seeks a total retum of delphlo Stock Exchange. The firm also O The High Yield and Convertible Bond its assets from growth of capitaland expanded its esecution cope illity on the Department remains the dominant factor from income, principolly through a port-Chicago, Philodolphla on eific in its market. To foster further growth, it folio of Intemational securillas. T he fund is Options Erchanges. continues to espond significontly its diversilled by company, industry and Through a subodiary, Druel Burnham research, sales and trading stoff, and to country to provide stability and growth. Lambert Options,Inc., we have become widen its ronge of securitles products. y
m= - vides clients with innovative and cost petitive underwritings. Th a department GROWTH OF FUNDS effective strategies that reduce interest continues to cxpand its distributi:n copo-Nuusu os . rote risk exposure while exploiting Interest bilities,with sol s to individuols and insti-romouos t$ BRONsl rate opportunities.The group monoges tutions up 35 percent, nas n ae various types of ceiling and floor pro-O Drexel Burnham tombert Puerto Rico i9u na i, groms and interest rate swaps for corpo-Inc., the firm's full service Puerto Rico- ~' ~ nu e u rate, municipo! and Institutional clients. based subsidiary, provides clients with m2 e u O The Mortgage-Bocked Securities institutional trading and corporate and m: 7 n Department numbers over 250 profes-municipal finance copabilities throughout som.+...i e-,+ a 4 sionals in the areas of finance, trading, the Caribbean region. b*C,7,,,,.7.*,"*.'7,.@*e',,%*[',U,/**** research and distribution, and provides a O ln the Eurobond market, our London-complete range of services to all mort-based subsidiary, Drexel Burnham gage market porticipants. tombert Securities Limited, is on active O The Drexel Burnham Fund is on open-The Trading Groupis a market moker and major market-makerin over 700 end equity mutual fund oppropriate for in nearly 100 securities including mort-Eurobond issues. those investors seeking capital oppreci-gage securities, options on mortgage ation and income. The Fund has produced secu iti:s, repurchase and reverse repur-consistentlong term performance sinceits chose transactions in mortgage securities inception in 1975. and whole loan and particioation trans-0 Our closed-end bond fund, the Drexel actions. Since January 1985, the trading Bond-Debenture Trading Fund, hos com-desk has increased its monthly trading PROFESSIONALINVESTMENT piled the best performance record of oil volume by 300 percent. MANAGEMENT SERVICES closed-end bond funds over the post five Tha Research and Product Development and ten year periodsin up and down Group, the largest of its kind in the The increasing complexity of the market-markets, according to industry analysis industry,is widely regarded as the fooder place and investment alternatives de-services. In its field. in addition to mortgage-related mands ever-greater sophistication while OThe firm expanded the DBL Tox Free securiti;s, the group covers investment market volatility requires evenfaster decl-Fund by adding a second portfolio, the groda corporates and government bonds slon making. To provide investors with the Limited Term portfolio. With on overage and c ptions on bonds. Dedicated fixed benefits of specialized expertise, the firm portfolio moturity of three to six years, the inc:m a portfolios, from the simplest cash offers a number of investment programs. Limited Teren portfolio seeks the highest matching to sophisticated tailored port-level ofincome exempt from federal foll;s, are structured by the group. DREXElMANAGEMENT income taxes to the extent consistent with Th: Financiallnstitutions Group ranks CORPORATION the preservation of capitol. cs cn;of the largest finance units in the Drexel Monogement Corporation hos O the firm odvises or sponsors ten inter-Industry. Since the department's inception over $2.5 billion under monogement in national investment componies, including in 1984, Drexel Burnham has rolsed more mutual funds and other accounts. Profes-two commodity futures funds. regul; tory capital for the thrift industry sional Cash Asset Management (ProCAM) O ln 1985 Drexel Burnham lambert intro-than cny other firm. offers custom tailored short term invest-duced the DrexelSeries Trust which Tha CommerclolMortgage Group ment management expertise to instite"ons, currently hos over $265 million under packages, securitises and trades commer-with the advantages of higher than over-management. Designed for long term cialloans and securities backed by oge yields and sophisticated operational investors, the Series is especlolly attractive e:mm:rcial loans for thrifts and other support. The Credit Evoluotor, o premier forIRAs and other retirement plans portfolio investors. The group olso advises financlol service designed to Instantly since there are no sales fees or commis-financi;l institutions in portfolio restructur-occess entensive financial information slons If the investment is held for more ing, which con result in the outright sole from SEC filings vio o remote forminal at a than five years. By investing in the Drexel cf c:mmerclolloons or the creation of client's desk, provides sophisticated Series Trust, clients are able to take c ll:t:ralized securities backed byloans. screening and portfolio monitoring capo-advantage of market trends and invest-O th: Municipal Bond Deportment bilities. Our new consulting service, the ment opportunities through professional remains a molor underwriter of public Asset Consulting Evoluotor, con help management, institutional quality invest-securiti:s In the primary market.We clients select on investment manager and ment research and diversified portfolios, managed 3691ssues and, occording to the monitor his performance. Public Securit.es Assoclotion, ranked in DREXEL BURNHAM LAMBERT fUNDMANAGEMENT INVESTMENT ADVISORS Drenel Burnham tombert is the invest. With over $1.9 billion in assets under REGULATORYCAPITAL RAISED ment advisor and odministrator for on monogement, Drenel Burnham tomberi FOR THRIFTS,1985 espondino number ol mutual funds. The Invest nent Advisors, headquartered is - combined assnts of these funds total more in Philodelphlo, serves a brood spectrum Gu deo Wasuus ~ ~ ~'~ ~sno" than $2.8 billion, of accounts. These includo corporate, sbo,wdI~ ~ arn f O Wo offerindividualinvestors four public ond ioft Hortley employee ret;re-money morlot funds whlch provide liquid-ment funds; financlol, charltoble, educo-renw. m peepGj)))) y ity and high yloids by investing In short. rional and religious Institutionse and high DINY.b __ ys t rm money marketInstruments, net worth Individuals. EoCh ocCount 1: As c mnew., be. e sw *., % c % % oyegggen by a team C porffolio managers y d L
nd in strategic locati:ns around - -INTERNATIONAL ACTIVITIES - objectives. Portfolio managers handle o a maximum of 20 occounts to ensure the tha world including Europe, Brazil and - highest degree of ottention to client . Southeast Asio.' Dr:xel Burnham Lambert, one of tha first objectives. ' O A team of energy futures specialists in investmtnt banking firms to penetrata thi L The group offers o full range of Invest-NewYork and London provides profes-international markets, continues to ex-ment monagement services on a discre-sional hedging and orbitroge services to pondas activities and maintain its leading tionary or odvisory basis includingt the international petroleum trade. positir n overseas. In response to the O Equity Asset Monogement, o preprie-O ln foreign exchange, we provide full ~ globalization of world markets, Drexel . tory model used to structure o portfolio brokerage and dealing services to the Burnham is meeting the challenge of of stocks that represent the best relative international trading and financial com-the new era from o position of excep-values with attention to reducing risk and munity. Core units located in New York, tional strength, ottaining client ob[ectives. London and Singopore provide Institu-Our international activities are expand-O Fixed income Asset Managen.cnt, wb:ch tional clients with 24-hour trading facil. ing rapidly while we maintain o prom. serves portfolios that consist exclusively of ities m the iniwbonk market. Inent position in traditional oreos of quality corporote, government and O Our subsidiary, Drexel Burnham Lambert business. The Securities Industry Associo. ogency bsees.. Trading Corporation and its London offil-tion consistently ranks Drexel Burnham O Cosh Portfolio Managemo,which. late, Drexel Burnhora t ombert Trading among the top five U.S. securities firms v i structures a portfolio of investment securi-Limited, serve os primary market mokers in executing U.S. equity business in Europe fles with a maximum one year motority, gold and silver bullion and the platinum and the For East. Drexel Bumham is re-utilizing the full research copobilities of group metols. The firm actively trades in garded as one of the leading U.S. market-th3 firm. concentrates, precious metol-bearing makers in a full range of foreign securities. O Bolonced Portfolio Managemut, which scrap and dore bullion, finone'r g and inIMS Drexel Burnham utilizes a strategic asset allocation model shipping precious metals in all forms. O Was granted a license by the Joponese to best position a portfolio to achieve the Oln response to the maior strucural Ministry of Finance to open a branch d: sired Investment ob[ective. changes taking place in world oil markets, of' ice in Tokyo, enabling us to expand Drexel Burnham Lambert Trading Corporo-our octivities throughout the for East. tion now trades internationally in crude oil O Restructured its futures activilles, and petroleum products. This activity strengthening our position as one of merges the exportise of several veteron the most significant factors in overoll professionals from the petroleum industry commodities trading in London. Drexel COMMODli / SERVICES with the Trading Corporation's estab-Burnham is a member of allfutures lished commodity dealing copobilities exchanges, including the LIFFE, and is Widely recogr ized as a leading multi-ond resources. a leaderin financlot futures 3 notional futures broker to commerclot and O A team of research analysts and econo. O Expanded itsInternationalfixed institutional interests, Drexel Burnham is mists monitors the commodities markets, income capabilities throubn the addition of so o significant factor in the dealer mor-providing support and guidance to our of a streamlined trading roomin our k2t for precious metals and the interbonk trading groups worldwide. From Chicago, London offices. market for foreign exchange. onelysts cover the ogricultural and finon-OContinued to expond its corporate t Oln1985 we continued to eatend our clot markets,in New York and London, finance business thoughou Europe and nctwork of financlol futures operations by speclolists cover the proclous and base the Pocific with a major commitment t Establishing on institutional unit In metols markets. in 1985 we Initiated the of resources. l New York to complement existing opero-development of highly technical computer O Continued to provide non U.S. investors tions In London, Paris and Singopore and mudels for complex commodity options with a broad range of Investment vehicles tha primary unit in Chicago. trading strategies. to meet their specific needs. Total assets O We provide comprehensive brokerage Oln the creo of professional asset man-in our offshore funds now opproach $500 and trading facilities in base metols from agement, Drexel Burnham hos developed million. The Finsbury Group limited and N:wYork and London, serving producers, o strong reputation for servicing Institu-Finsbury Fund limited, our off shore high fabricators and dealers around the world, tional and substantial individual accounts yleid bond funds, continue to perform well In New York we enhanced our metals by recognized commodity trading ndvis-and have droun over $200 millionin brokerage facilities through the organiza-ors. We continue to offor non-U.S. Inves-ossets since their inception in 1984. tion of a specific unit of professionals with fort two funds which utilize o multiple O Sponsored its annual two week Inter. cupertise in the precious metals markets, trading advisor opproach, including sne national Training program in NewYork for O Through its subsidiories, Drenel Burn-which speclolizes In the financial futures International clients, designed to famil-ham ls the only U.S. firm with complete markets and another which provides lorize client representatives from overseas market facilities In both the London and diversihcotion of trading across all molor with the framework of the U.S. securities N:wYork markets for sugar, colfee and futures market groups. In 1985 we devel-Industry. Dronel Burnham also hosted its cocoa, ougmented by on important physi-oped a guided technical tradin0 pro-Fif th International Seminor, held in col cocoa brokerage activity in London, gram, Futures froding Service, to assist our Washington, D.C. The seminor was O ihe firm's International trading activities account onecutives in providing profen-attended by senior investment monogers j in grain andlivestock continue to be slonalguidancein specific trading from all over the world. capertly handled in Chicago, the primary situations to Dresol Burnham's clients. 44 t
f WXtW'edNS'rd5%M>AKISUMAKJ 7 j-L THE DREXEL BURNHAM LAMBERT ASSETS frhousands) GROUPINC. AND SUBSIDIARIES Cash and temporary cosh investments lincluding $91,685 segregated in compliance with f ederal and other regulationsi $ 467,839 CONSOLIDATED STATEMENT OF Receivoble from brokers and dealers 3,642,128 flNANCIAL CONDITION Recehr Weir nicust mers I, I, 22 DECEMBER 31,1985 Securities purchased under agreements to resell, at contract value 14,226,868 Securities and spot commodities, at market value U.S. Government and Government agency obligations 6,693,233 Stote and municipol obligations 572,054 Corporate debt 3,421,067 Corporate equities and options 1,224,966 Commercial paper, certificates of deposit and bankers'occeptances 192.102 Spot commodities 418,840 Other ossets 620,671 TOTAL $33.051,290 llABillTIES AND NET WORTH Short. term borrowings from bank $ 3,861,354 Commercial paper 599,155 Draf ti payable 559,530 Payable to brokers and dealers 3,083,478 Payoble to customers 1,230,548 Securities sold under agreements to repurchase, at contract volve 15,720,023 Securities and spot commodities sold but not yet purchased, at market voluei U S. Government and Government opency obligotions 4,533,774 State and municipal obligotions 26,795 Corporato debt I33,407 Corporate equities and options 474,862 Spot commodales 301,357 Au ovnte payable and accrued Itabilities 1,577,744 32,102,027 Subordinated ilobilities 229,784 Stockholders' equity 719,479 fotal subordinated liobilities ond stoc k holders' equity 949,263 TOfAl $33.051,290 45 16. r.nerew e....r m,,s+..e a.w.4.m. es w..,4*,
' THE DREXEL BURNHAM LAMBERT ~ NOTE 1. SIGNIFICANT ACCOUNTING POLICIES ~ GROUPINC. AND SUBSIDIARIES
- 4' The c
- nsolidated statement of financirl condition includes tha accounts of The Drexel -
NOTES TO CONSOLIDATED Burnham Lambert Group Inc. IthfGroup"), Drexel Burnham Lambert incorporated STATEMENT OF FINANCIAL CONDITION. l' DBL *), Drexel Burnham Lambert Government Securities Inc., Drexel Burnham Lambert - International Bank N.V., Drexel Burnham Lambert Trading Corporation, K.M. Financial Corp., and oil other subsidiaries. Principal transactions in securities and commcdities are recorded on a trade date basis. Agency transactions and contractual commitments, including forward and futures con-tracts, are recorded on a settlement date basis with commission income, related expenses and unrealized gains orlosses on open commitments accrued on a trade date basis. - The Group obtains letters of credit in the normal course of business which are not reflected in the consolidated statement of financial condition. At December 31,1985,let-ters of credit of $610,446,000 were outstanding and were collaterolized by securities owned with a market value of opproximately $441,841,000 and customer margin securi-ties with a market value of opproximately $29,624,000. NOTE 2. SHORT-TERM BORROWINGS FROM BANKS AND COMMERCIAL PAPER Borrowings from banks are generally payable on demand with interest rates related to the broker call loan interest rate. Commerclol paper is payable within 60 days bearing Interest generally based on similarly rated short-term money market instruments. At December 31,1985, borrowings from banks were collaterolized by securities and spot commodities owned by the Group and securities purchased under agreements to resell with a combined market value of opproximately $3,841,902,000 and customer margin securities and spot commodities with a combined market value of approxi-mote!y $37,095,000. NOTE 3. SUBORDINATED LIABILITIES Borrowings subordinated to the claims of general creditors at December 31,1985 are os follows Expironon Term IThousands! S solor borrowings March 31,1986-Aprill,1994 $187,000 Cash subordinatedloans January 27,1986-February 10,1992 11,657 Vario ble rote convertible debentures December 31,1988-December 31,1991 10,000 Variable rate debentures December 31,1986 December 31,1989 9,950 Borrowings pursuont to secured $is months from date of notice demand note colloteralagreements 5,725 Other Various 5,452 TOTAL $229,784 Under the terms of the senior borrowing agreements, os of December 31,1985 the Group must molntain subordinated liabilities and stockholders' equity of $498,000,000 and stockholders' equity of $380,000,000. In addition, DBL must maintain subordinated liabil-Ifles and stockholder's equity of $650,076,000, stockholder's equity of $486,502,000, regulatory net capital, computed pursuont to the Securities and Exchange Commission's
- Uniform Not Capital Rule,' of $187,000,000 and a ratio of regulatory net capital to oggregate debits In excess of 7% isee Note 41.
46
' During 1985, Series C and D convertibb subordinated notes in the amount of $6,667,000 . THE DREXEL BURNHAM LAMBERT - were converted into 660,792 shares of tha Group's common stock. GROUPINC. ANDSUBSIDIARIES Borrowings pursuont to secured demand note collateral agreements are redeemoble - NOTES TO CONSOLIDATED six mond.s offer notice is given by either DBL or the subordinated lender. The aggregate = STATEMENTOFFINANCIAL COND! TION ' maturities of the other subordinated liabilities for the years ending December 31,1986, Continued 1987,1988,1989 and 1990 are $14,348,000, $18,442,000, $17,076,000, $17,562,000, and $97,846,000, respectively, and for the years thereofter, $58,785,000. NOTE 4. NET CAPITAL REQUIREMENTS DBL is subject to the Securities and Exchange Commission's " Uniform Net Capital Rule' and has elected to compute its regulatory not capital in accordonce with the " Alternative Net Capitol Requirement" of this rule. At December 31,1985, DBL had regulatory net cop-ital of $222,072,000 which was 12.8% of aggregate dubits and $187,423,000 in excess of the required regulatory net capitol of $34,649,000. NOTE 5. COMMITMENTS Minimum rental commitments were $418,290,000 os of December 31,1985, for all noncon-celoble leases lprincipally office rentals) and range from opproximately $64,159,000 to $51,137,000 for the years 1986 to 1990 and aggregate $131,017,000 thereofter. Various leases contain provisions for escolation based on certain increases in costs Incurred by the landlord. NOTE 6. CONTINGENT LIABILITIES There are various legal actions pending against the Group and its subsidiaries relating to its business. In the opinion of management and General Counsel, such octions should be resolved with no material adverse effect on the consolidated financloi position. NOTE 7. EMPLOYEE BENEFIT PLANS DBL has a noncontributory defined benefit pension plan and a defined contribution tax deferred sovings plan covering substantially all full time employees of the Group. The net assets available for plan benefits are greater than the octuarial present value of occumu-lated vested and nonvested benefits. DBL also hos o funded profit sharing plan and on employee stock bonus trust which cover substantially o 1 employees whose annual com-pensation los defined by the plans) is within a specified range. DBL also provides cartnin life insurance and health core benefits for active and re tired employees, s r M
p +. f' s REPORT OFINDEPENDENT TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF CERTIFIED PUBLIC ACCOUNTANTS THE DREXEL BURNHAM LAMBERT GROUP INC.: We have examined the consolidated statement of financial condition of The Drexel Burnham Lambert Group inc. and Subsidiaries as of December 31,1985. Our examination was mode in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other ouditing procedures as we considered necessary in the circumstances. In our opinion, the statement of financial condition referred to above presents fairly the consolidated financial position of The Drexel Burnham Lambert Group inc. and Subsidi-ories of December 31,1985 'n conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Coopers & Lybrand New York, New York March 12.1986 CUSTOMER INSURANCE Securities held by the broker dealer for the accounts of customers are insured up to $2,500,000, the first $$00,000 by the Securities investor Protection Corporation and the remaining $2,000,000 of coverage provided by the broker-dealer through a major U.S. Insurance company. An additional $7.5 million is available to all customers executing on account coordino. L _(Mpt in camcCon_ wit _h_in_vestm_ent in one of DremeJ B_urnham_Lomb_ert's_ funds. ____
m i DREXEL BURNHAM LAMBERT SELECTED FINANCINGS 1985 e y, f - ;PUBLIC OFFERINGS - GAF Corporation Reliance Financial Services Corporation .' MANAGED OR CO-MANAGED General Defense Corporation Republic Airlines,Inc. 1 General Homes Finance Corporation RLC CORP '..CORPORArE DEBT. General Host Corporation Rykoff-Sexton,Inc. - Golden Nugget Finance Corp. R.N. Koch, Inc. _.: Aerofl;:x laborofories incorporated Green Tree Acceptance,Inc. SCI Holdings,Inc.
- AFGIndustries,Inc.
. Guarantee Savings and Loan Association ScovillInc. ~ .' AMC Entertainment Inc. Gulf States Utilities Company Seaboard System Railroad,Inc. ~ L American Capital Bond Fund,Iric. Horte-Honk's Communications,Inc. Southern California Edison Company - 1American Capital Corporation ' Hasbro,Inc.. Standard Brands Point Company i American Continental Corporation. _ Household Finance Corporation Stone Container Corporation , Houston Natural Gas Corporation Summit Health Ltd. ~ AmericariFructoseCorporation. . Integrated Resources, Inc. < e A.R.A. Manufacturing Company of ' Delaware,Inc. Jamesway Corporation ~ Sunshine Mining Company Texas Air Corporation Astrex,Inc. K mort Corporotion The Atchison,Topeko and Santo Fe
- Bally Manufacturing Corporation -
Los Colinos Corporation Railway Company ' Bolly's Health & Tennis Corporation' Lehigh Valley Industries,Inc.. 'The Circle K Corporation
- BASIX Corporation.
Leucodio National Corporation Town & Country Jewelry Mfg. iBenjamin Franklin Savings Association Lincoln Property Associates Limited Corporation > Bergen Brunswig Corporation' Lyons Funding Corporation Transcontinental Gas Pipe line ' Burroughs Corporation - Motrite Communications Group,Inc. Corporation
- C
- lton,'inc.,
Mottel,Inc. Transchio Savings Bank, F.S.B. . Cdre Enterprises . MAXXAM Group Inc. Triton Group Ltd. - Cintex Acceptance Corporation MCO Holdings, Inc. Union Texas Petroleum Holdings,Inc. ~ CIntrol Soyo Company,Inc. M.D.C. Corporation United Cable Television Corporation
- Centronics Data Computer Corp.-
MOU Resources Group,Inc. United Stockyards Corporation (CenTrust Savings Bank Minstor, Inc. U.S. Health, Inc. - Chorter Medical Corporation Mitel Corporation - U. S. Home Corporation Citibank, NK Mobil Corporation Waxman Industries,Inc. Coast Sovings and Lohn Association National Healthcore,Inc. Western Air Lines,Inc. C.O.M.B. CO.. NBS Capital Corp. Western Financial Auto Loons,Inc. _ ; Commonweoith Saving3& Loan New Plan Realty Trust Westworld Community Healthcare, Inc. D Association of Florico : Nortek,Inc. West Texas Utilities Company ' Cook Inlet Communications Corp. Northern Pacific Corporati an Wickes Companies,Inc. _. Coopervision,Inc. Orion Capital Corporation Zoyre Corp. Corroon & Black Corporation Pontry Pride,Inc.
- Crone Co.
J Paracelsus Healthcare Corporation CORPORATE EQUITY j Daysinns of Americo,Inc. Pennsylvania Pow er & Light Company ! Fairfield Communities,Inc..
- Petroleum Heat and Power Co.,Inc.
Alco Health Services Corporation
- FinancioiTrustco CcpitalLtdf Philadelphia Electric Company American Medical Services,Inc..
~L First CopitM Holdikgs Corp.. Polycast Technology Corporation Apache Petroleum Company Aud'o/ Video Affiliates,Inc. 49 >.FreedomCapitalIncM Porto Systems Corp.
a X m BRintec Corporation. . MERGERS AND ACQUISITIONS. . Copitol Federal Savings and Loan PRIVATE FINANCINGS O Association C:rverCorporation .dmerican Satellite Company-Acquiring Company.
- CenTrust Finance Corporation AmeriWest Financial Corporation.
- AcquiredCompany CenTru' t Savings Bank : . Calvin KleinIndustries
- indicates Drexel Burnham Lambert client s
- CharterMedicalCorporotion :
- CH Financial Corporation.
x CincinnatiMicrowave,Inc Citizens Financial Corporation ' American Healthcore Management, Inc. Circus Circus Enterprises,Inc. 1 Comdisco Financial Corporation 'HeoffhCore USA Inc* Coast Savings and Loan Association ' Conner Financial Corporation. ' Acquisition Com Fed Funding Corporation - Continental Telephone Co. of Barbados Component Technology Corp. ~ Continental Telephone Co. of California - Beecham Group PLC ~- Days inns Corp.'. - Continental Telephone Co. of Vermont. Norcliff Thayer/Reheis* -
- First Capital Holdings Corp.
Continental Telephone Co. of Virginia ~ Acquisition First Executive Corporation : Diamond Lands Corporation
- Georhortindustries,inc. -
' Estrella Communications,Inc. E Berkey Photo inc. s ~Georgio Power Company Farley/ Northwest Industries,Inc. B&ESales Co.,inc* : Green Tree Acceptance,Inc. First Capital Holdings Corp. Acquisition -- , Grist Mill Co. Forum Health Partners, L.P Gulf States Utilities Company: 1 Hasbro,Inc. - ' Freedom Capital Inc.- Borg-Warner Corp. . Grant Broadcasting System,Inc Chilton Corp *. Intermet Corporation Great American Industries,Inc. - TenderOffer and Merger John' Adams Life Corporation . Hunters Square Commercial Properties laserIndustries limited. ' Ingersoll Newspapers, Inc. Carl C. Icohn LSI Lighting Systems Inc... Jomoico Hotel Properties,Inc. Trans World Airfines,Inc.. MacGregorSporting Goods,inc. Lafer Amster & Co.. Sole of strategic block and common
- M.D.C. Holdings, Inc.:
Levitz Fumiture Corp. stock options of Trans Wodd by National Healthcare,Inc. MAXXAM Group Inc. Texas AirCorp.* ' Newmark & Lewis Inc. Mobex Nortek,Inc... Mote l 6 Holding Company,Inc. Codisle Capitol Corporation - Occidental Petroleum Corporation : National Con Corporatico Berton Pbckaging,Inct Orion Capital Corporation New Plan Realty Trust Acquisition Pontry Pride,Inc.- PACE Industries Inc. PottenCorporation, P&C Food Markets Holding Corporation Carlisle Capital Corporation Philadelphio Electric Company Poid Prescriptions,Inc. Rex Plastics, Incorporated
- Philips N.V.
Pon_try Pride, Inc. Acquisition Ply-Gem In'dvstries,Inc. - Papercraft Corporation Pogo Producing Company Paragon Tampo Properties Associates Cement Roadstone Holdings, PLC Radice Corporation t Pennsylvanio Engineering Corp._ Collanon Industriesinc* Rogers CableSystems of Americo,Inc. . Regency Apartment Associates L.R . Acquisition Solick Health Core,Inc. SCOA Industries Inc. . SCI Equity Associates, L.P. SFN Companies, Inc. Centrol JerseyIndustries Inc. i SCIPSCO,Inc. Southmark Corporation RoweInternationoIInc* Storage Equities,Inc. Steding Software,Inc. Acquisition - Student Loan Marketing Association. Sun Valley Lake Associates - 1 Superior Industries international, (nc Tolley Industries,Inc. Citizens & Builders Federal Savings Bank ~ Sylvan Learning Corporation '- The Amalgamated Sugar Company freedom Savings ond loon Association * - Tele-Communications,Inc. The CBS/ Fox Company Acquisition T;xos Air Corporation The Circle K Corporation . ThiAll American GourmetCompany - The Coastal Corporation - Clayton & DubilierInc.*. ThaCoastal Corporation The Kroger Co. Uniroml,Inc. "Thermo AnalyticalInc. The Travelers Corporation Leveraged Buyout TigerInternational,Inc.. _ Triangle Industries,Inc. Town & Country Jewelry Mfg.~ Triton Container Partners Compagnie Oris Industrie Corporation Union Texas Petroleum Holdings,Inc. ClS-US, Inc* l UtiliCarp United inc. Uniroyal,Inc. Acquisition VMS Mortgage Investors L.P Wickes Companies,Inc. J Waxman Industries,Inc.. Winn-Dixie Stores,Inc. Conair Acquisition Corporation Western Federal Savings Bank - Wundies,Inc. ConairCorporation* Westwodd Community Healthcare, Inc. Zenith NationalInsurance Corp. Leveraged Buyout Wickes Companies,Inc. g
Crone _Ch . Hawley Group PLC, Planning Research Corp. ~ lAloyco,Inc?! - OlsenIndustries,Inc* Kentron Intemational,Inc*- c. Acquisition. - Acquisition Ttnder Offer and Merger 1 Crone Co.- HealthCore USA Inc*-
- Ply-Gem Industries Inc?
~ Independence Health Plan,Inc. [ . BarrisIndustries.Inc. . ; Unidynamics Corp. ? Merger Sole of 27.7% strategic block of Ply-Gem ' Sob of 6.2% strategic block of ? Unidynamics by Nortekinc? common stock ~ Home Fur'nishing Enterprises,Inc. l Forley Metals,inc* Perfect fitInc* Powder Hill Group Ltd.
- NorthwestIndustriesInc Leveraged Buyout Globe Distribution
- iT:nder Offer and Merger _
Acquisition ? International Controls Corp. !GB-Inno-BM S.A. Primark Corp.; L HondyAndyHomelmprovement.
- TranswayIntemationalCorp.-..
. Aviation Group,Inc* Sale of 11% strategic block by Nortek, Inc?
- Centers,Inc*-
. TenderOffer and Merger : Acquisition of Control- _ Lehigh Valley industries,Inc., Nico, Inc* Revco D.S.,Inc. Gbarbartindustries inc? ' Merger
- Group offnvestors'
- 1 Smith Intemationallnc.
Sole of 13.5% strategic block of Revco - E Repurchase of 20.4% block of Georhart Limited inc. common stock . common stock.
- lemerStores Unit *
. Acquisition' Sengro Corporation * - - General Defense Corp. Graham Company L Homilton Technology inc* ' MacAndrews & Forbes Holdings Inc. Merger Acquisition ; ~' Pontty Pride,Inc* Acquisition Stauffer Chemical Co.
- General Oriental Securities Ltd?
AppliedSolarEnergyCorp? - Crown Zellerbach Corporofion _MAXXAM Group Inc* Tender Offer - Acquisition of Control _ Pacificlumber Co. Tender Offer and Merger Sterling Software,inc? Giant Portland Masonry Cement Co? Informatics GeneroICorp. Keysto'ne Portland Cement Co. MCA Inc. Tender Offer and Merger J M;rger
- UN Toys Ltd.
Sole of 59% strategic block of UN Sunshine Mining Co? - GrandMet USA,Inc. 2 Toys Ltd. by Uni-Investors
- Woods Petroleum Corp.
Quality Care,Inci - . Merger ' M;rger Multimedia,Inc. Jack Kent CookeInc? Talcon, loc. LGroup~ofInvestors ~ Sale of 9.7% strategic block of Multimedia Colton,Inc*
- Deerfield Groves Company * '
common stock Leveraged Buyout Merger - National Beverage Corp. The Coastal Corporation *
- Group ofInvestors*
Shosto Beverages Inc* American NaturalResources Co.
- levitz Fumiture Corp.
Acquisition Tender Offer and Merger - Leveraged Buyout National Business Systems inc* The William Lyon Co. and JDH Realty Co..
- Group of Investors DekIdentification Systems -
Senior Corp
- Ponovision inc* :
Acquisition _ Acquisition Acquisition i Nuclear Pharmacy Inc. Titan Systems International,Inc. ' Group'of Investors' SyncorIntemationo!Inc* ElectronicMemories & Magnetics
- SCOA Industries Inc.
Merger. Corporation
- leveraged Buyout.
Merger Pantry Pride,inc? Revlon,Inc Triangleindustries,Inc* - ' Group ofInvestors ' Tender Offer and Merger NationalCon Corp. ' Universal Ford. Inc (subsidiary of Sandgate .. Corporation *) Tender Offer and Merger ' Acquisition Phillips Petroleum Corp. Icahn GroupInc*- Trump Group *
- Hanover Componies incorporated Sole of 48% strategic block of Phillips Pay *N Sove Corp.
Titan Group,lnc* - Petroleum common stock Tender Offer and leveraged Buyout i Acquisition 51
1UnocoiCfrp.:. Cdif5rnI2 Polluti:n Control Financing Illinois Educational Developm:nt Authority ,1 Meso Petroleum. Col _ Redevelo'pment Agencyof the City - . City of Chicago - Authority iSob of.7.9% strategic block of Unocol ; East;rn Illinois University
- common stock of Burbank -
Greater Chicago Metropolitan 9 '=". Sewer District ' ~ f (Utilicorp. United inc*, ~ COLORADO . Western Illinois University b
- Peoples NaturoIGos Co.
Arvado Urban Renewal Authority Metropolitan Fair and Exposition Authority p L Acquisition Cityof Aspen ofIllinois - I Cityof Boulder 1Vtlley Forge Corporation
- Town of Breckenridge.
INDIANA ~ g ' foodEmulsifiers,Inc. Colorado Housing Finance Authority State ofindiano 1 Acquisition l Cityof Colorado Springs Whiteland Community High School Colorado Student Obligation Bond Building Corporation Wechco,Inc. ; Authority ; . West ChemicalProducts,Inc*. - State of Colorado - IOWA Leveraged Buyout City and County cf Denver City of Des Moines ' Town of Dillon - 1WhittakerCorporation' County of Douglas KANSAS . _ YordneyCorporation* : L- ' Acquisition ' = City of Grand Junction Crawford County-Adams County City of Hutchinson - Jefferson County Cityof Konsos City ' Wickes Cos' Northglenn Water Project City of Olathe, . Consumer and Industriol Products Division of : Pueblo County County of Sedgwick - Gulf & Western Industries Inc. City of Steomboat Springs Johnson County > Acquisition. Town of Voil City of Wichito f E CONNECTICUT KENTUCKY
- Connecticut Development Authority
. City of Jeffersontown Connecticut Resource Recovery Authority County of Jefferson . MUNICIPAL FINANCINGS - DELAWARE. - LOUISlANA MANAGEDISSUES, Cityof Wilmington - Parish of Jefferson . PRIVATE PLACEMENTS AND' New Castle County FINANCIAL ADVISORY MAINE ' FLORIDA' Cityof Biddeford - ALABAMA - . City of Clearwater Alabama Housing Finance Authority Housing Finance Authorityof Broward MARYLAND Fairfield Special Core Facilities - County Maryland Health and Higher Educational ' Finance Authority Florida Housing Finance Agency Facilities Authority Illoyd Noland Hospitall GEORGIA'- MASSACHUSETTS ' ? ALASKA Urban Residential Finance Authority - Massachusetts Industrial Finance Agency 1 Alaska Housing Finance Corporation ofAtlanta Mossochusetts Convention Center Alaska Municipal Bond Bank Authority Fulton County Building Authority Authority . City of Fairbanks ' City of Atlanta Mossochusetts Housing Authority ARKANSAS HAWAll MIChlGAN i Arkansas Development Authority Hawoil Housing Authority Economic Development Corporation of - Ann Arbor 0 CAllFORNIA IDAHO Economic Development Corporation of - County of Orange Ada County the County of Wayne
- Ccunty o' Santa Claro Bearlake County City of Detroit industrial cevelopment Authority of Idaho State Building Authority L
. l SimiValley Regentsof theUniversityofIdaho MINNESOTA - City of Colton-Twin Falls County Cityof Burnsville Cityof Los Angeles Cityof Egon City of Oakland ILLINOIS . County of Santo Barbara Cityof Rockford MISSOURI ' County of Ventura : Illinois Health Core Facilities Authority Industr'al Development Authority of r Cdifornio Department of Veterans Affairs Board of Trustees of Southern lilinois Konsos City L County oflos Angeles University Industrial Development Authority of the City of Oxnard Illinois Educational Facilities Authority City of Macon City of Springfield City of St. Louis gg Chicago Transit Authority Metropolitan Sewer District of St. Louis
[$4ONTANA?,... New Y.rk StataJob Development - SOUTH' DAKOTA - ~ 1 Billings High SchoolDistrict Authority... South Dakota Housing Develtpment 1 Suffolk County industrial Developm:nt Authority. t NEBRASKA J... Agency; J Nebraska Higher Educational Loon : . Metro Government of Nashville and TENNESSEE. LProgram - NORTH DAKOTA-City of Forgo Davidson County f NEVADA ~, e Churchill County School District OHIO - TEXAS County of Clark' ' Harris County Industrial Development : ,NEW HAMPSHlRE - - Ohio Housing Finance Ag'ency. . Corporation New Hampshire Municipal Bond Bank State of Ohio Building Authority - _ Galveston CountyWater Authority Grand Prairie Independent School District 1
- NEWJERSEY -
OKLAHOMA ' Harris County Housing Finance Township of Porsippony-Troy Hills. Centrol Oklahoma Transportation and Corporatio'n New Jersey Transportation Trust Fund Parking Authority City of Irving _ ! Authority - Miami Baptist Hospital Authority Travis County Housing Finance , c NewJersey Educational Facilities Stillwater Medical Center Authority Corporation ' Authority. IPrinceton University) PENNSYLVANIA UTAH Redevelopment Authority of Philadelphia Board of Education of Salt Lake City . (Drew Universityl. Centrol Dauphin School District School District '(Glassboro State Collegel -(Kean Collegel -. School District of Philadelphio Doggett Water and Sewer District. l(Richard Stockton State Collegel Palmyro Area School District Housing Authority of Salt Lake City . (William Paterson Collegel Delowore River Port Authority. Logan City - (Fairleigh Dickenson University). . Pennsylvania Higher Educational Focilities Salt Lake County Water Conservancy - IS ton Hall Universityl Authority District
- (Princeton Theological Seminaryl
' (Drexel Universityl - City of South Weber
- Mount Laurel To~ nship Municipal '
Union County Higher Educational .WeberCounty w UtilityAuthority. Facilities Financing Authority Davis County H_ousing Authority New Jersey Sports and Exposition (Bucknell Universityl University of Utah State Board of Regents
- Authority County of Montgomery
- New Arsey Housing and Mortgage Lehigh County Industrial Development VERMONT State of Vermont . FinanceAgency Authority _. ' County of Camden ' Quakertown Hospito! Authority Essex County improvemont Authority Pennsylvania Housing Finance Agency VIRGINIA Delaware County Authority Portsmouth Redevelopment and Housing ' NEW MEXICO IVillanovo Universityl Authority
- Chovis County City of Philadelphia Counti:s of Son Miguel and Moro Erie County industrial Development' WASHINGTON City'of Roswell' Authority -
City of Bremerton Cityof Albuquerque Cityof Everett
- Regents of the University of New Mexico PUERTO RICO City of Vancouver
- State of NewMexico Puerto Rico Industrial, Medicol, Higher Educational, Environmental and WISCONSIN L NEW YORK Pollution Control Focilities Financing City of Milwaukee ' PowerAuthorityof theStateof NewYork Authority City of Oshkosh N;w York State Medical Core Facilities Puerto Rico Aqueduct and Sewer Authority . Finance Authority Puerto Rico Housing Bank and Finance WYOMING . ~ (Columbio-Presbyterion Hospitall Agency City of Cheyenne (Mount Sinai Hospitall Commonwealth of Puerto Rico loromie County School District Wyoming Community Development ' Stata of NewYork Mortgage Agency _ RHODEISLAND Authority
- New York State Dormitory Authority.
- Uewish. Board of Family and State of RhodeIsland Children's Services).
Rhode Island Health and Educational Triborough Bridge and Tunnel Authority Building Corporation New York State Urban Development (Roger Williams Collegel Corporation (RogerWilliams General Hospitoll . M;tropolitan Transportation Authority. (Memorial Hospitall New York State Housing Finance Agency Rhode Island Public Building Authority New York City M*ipal Water Finance - Authority SOUTH CAROLINA Charleston County j (Roper Hospitall 53 l
p%, 7 OFFIC S,PRINCIPALSUBSIDIARIES AND DIRECTORS HARTFORD, Connecticut. NEWPORT BEACH, California - DOMESTIC OFFICES Jonathan K. Standish 203522-2900 Gerald R. Conn 714 640-5600 RESIDENTMANAGERS . HATO REY, Puerto Rico ORLANDO, Florida Alei ndro G. Asmar 809 759-9393 James E SmolleyJr. 305-629-5828 Headquarters 60 Brood Street ~ . HOUSTON, Texas PALO ALTO, California NewYork, New York 10004 - George Stark-713 940-9100 - Malcolm M. Bittel 415494-8500 - JENKINTOWN,Pennsylvanio. PARAMUS, New Jersey ATLANTA, Georgio James C. Baird 215 885-3010 Richard J. Geismon 201967-3300 St: phen M. Roeber 404 231-1411 KANSAS CITY, Missouri PHILADELPHIA, Pennsylvanio ' BATON ROUGE, Louisiono Frank Kirk 816 561-4444 Steven Laden ' 215561-8060 Jerome M. Dottel. 504 389-9717 LA JOLLA, Californio PHOENIX, Arizona . BEVERLY HILLS, California WalterJ.Show 619 459-4261 John M.JetterIV 602 941-2100 p Lewis H. Koirys 213 281-3400 LAUDERHILL, Florida - PROVIDENCE,RhodeIsland - BOCA _ RATON, Florida. Michael A.Novak-305 742-5000 Richord W.Morsilli 401276-5900 -James A.Stroiner 305 391-8282 LOS ANGELES,Californio. ROSSMOOR, California BOSTON,Mossochusetts Barry Horberson 213 628-4000 Pcul Yenofsky 415 930-8333 Joseph A.Simons :617482-3600 MIAMl, Florida , SAN FRANCISCO, California CHICAGO, Illinois. Peter L Bermont Paul Yenofsky 415 981-7030 Matthew J. Miller 1 312 977-3000 Richard B. Bermont 305 358-7750 SEATTLE, Washington CHICAGO, North Shore MIAMI BEACH, Rorido. Charles W. EasterJr. 206 464-8200 William E O'Brien 312 498-7700 Martin J. Gelb 305 672-5900 SOUTH MIAMI, Florido DALLAS, Texas MINNEAPOllS, Minnesoto tra Sochet 305 665-6541 Charles M. Best 214 969-5600 William G. Krebs Jr. 612 343-0070 ST. LOUIS, Missouri DARIEN, Connecticut NEW ORLEANS, Louisiono Richard T. Fisher 314 889-4800 ArthurR.Katz 203655-0200 Jerome M. Dottel 504 524-7373 WASHINGTON, D.C. . DENVER, Colorado NEW YORK, New York George W. Fellows 202 862-2800; Patrick Stock 303 293-9300 Downtown WHITE PLAINS, New York
- "Y DETROIT, Michigan Alan R. Epstein 914 6 94-2121 Paul R. Jingozion 313 258-3434 NEW YORK, New York Midt wn REGIONAL MANAGERS ENCINO, California J mes S.Venet s 212 644-1900 Robert B.Zusman 818 990-0200 NEW YORK, NewYork
^ futures Advis ry CENTRAL, Kurt B. Kormin 312 977-3100 vdL i e 3 2 Eliando A. Palmese 212 398-8484 WEST, Herbert L Dunn 213 281-3650 54
- ry DREXEL BURNHA' M LAMBERT.
0 INTERNATIONAL SECURITIES OFFICES - PRINCIPAL SUBSIDIARIES SECURITIES LIMITED 4 RESIDENTMANAGERS. AND DIVISIONS - RogerJosp6 Chairman E i Orexel Burnham Lambert international inc. DREXEL BURNHAM LAMBERT - . Jean-Pierre Buri 1 Administrative Office: London : AMERICAN SPECIAllSTSINC. Deputy Chairman ' Alain Chii 920-9797
- Howard M. Brenner London 920-9797 '-
President DREXEL BURNHAM LAMBERT i AMSTERDAM 212 480-7859' TRADING CORPORATION Jacques Mellegers 26.56.56 - DREXEL BURNHAM LAMBERT Robert Rubin BRUSSELS ' COMMERCIAL PAPER - President Yvon Freedman 512.38.10 INCORPORATED Barry Klein Stephen D. Weinroth. Executive Vice President - Chairm f the Board 212 480-8160 )J P rre Burl : 29.92.50 j DREXEL MANAGEMENT ' HONG KONG DREXEL BURNHAM LAMBERT-CORPORATION Marc Faber - 26.51.63 GOVERNMENT SECURITIESINC. Eugene J.Glaser LONDON Edwin Kantor President Anthony L Forward 920-9797 - Chairman 212 480-6000 Michaelljackl Kugler PARIS HARBORTRUST COMPANY Mo'rc Landeou 4-723-7216 Brian T.McGirl 480-2 Chief ExecutiveOfficer DREXEL BURNHAM LAMBERT 201795-5822 ~ ert y -- 225-1388 INTERNATIONAL BANK N.V. KIRCHNER MOORE & COMPANY - TOKYO -
- Curaqoo, Robert E. Bigelow Masahiko Yomomoto 597-0411 Netherlands Antilles
- President . ZURICH DREXEL BURNHAM LAMBERT William J. White ' Peter Wymann 252-1314 ~ INTERNATIONAL INC. Chairman L RogerJospe 303 292-1600-INTERNATIONAL COMMODITIES. President l^INE, WATSON & COMPANY . OFFICES RESIDENT MANAGERS ' London 920-9797 D "*"*'8 O ^ Robert McPh." Drexel Burnham Lambert international N.V. . LIMITED ie Administrative Office: London - Mark Fox-Andrews Co-Monog,ing Directors . Edwin Buchonon 920-9797 Monoging Director London 920-9797 AMSTERDAM THE WASHINGTON FORUM,INC. ' AntonySchipper DREXEL BURNHAM LAMBERT Edward V. Garlich, Jr. ' PeterVcrhoeven '22.18.16 MANAGEMENT CORPORATION President 1.W Burnhom it 202 337-0110 BRUSSELS Chairman of the Board Airxander Bakked 513.69.30 212 480-6000-GMA DREXEL BURNHAMl AMBERT Guy Bouchard - 29.92.85 PUERTO RICO INC. HONG KONG Jose Enrique Fernandez More Faber. 26.51.63-President 809 759-8888 dNDON Mark Fox-Andrews 920-9797 DREXEL BURNHAM LAMBERT OPTIONS NC. PARIS H w rd M.Brenner S Pierre Rochon. ~ 4-720-4142 President RIO DE JANElRO 212 480-6081 Geoffrey D. Green bon 231-20-62 DREXEL BURNHAM LAMBERT SAO PAULO _ REALTY INC. H. Pet rJosiger 80-11 Joseph M. Murphy SINGAPORE . Robert Oddy 225-1388-ZURICH PeterWymann.. 25 2-1314-
1 J 'J'OHN H. KISSICK L LTHE DREXEL BURNHAM LAMBERT L - DREXEL BURNHAM LAMBERT . Monoging Director GROUP INC. INCORPORATED [Monog ng D - BOARDOF DIRECTORS BOARD OF DIRECTORS c
- JAMES BALOG
.G.CHRIS ANDERSEN'. JEAN LANIER* - Senior ExecutiveVice President - ! Managing Director DeputyChairman.of the Executive Committee I.W. BURNHAMll HERBERT J. BACHELOR
- HonoraryChairman of the Board -
- Executive Vice President L mbertBrusselsCorporation .. JON M. BURNHAM ' JAMES BALOG* = ROBERT E.LINTON* Executive Vice President ' Vice Chairman of the Board. C f tive Committee - JOHN D. COFFIN LEON BLACK DAVID MEADOW Executive Vice President Managing Director SeniorVice President - MAURITS E.EDERSHEIM HOWARD M. BRENNER* RE den [ DeputyChairmanof theBoard - Executive Vice President P MICHAEL E.GELLERT - W.THACHER BROWN - JOSEPH M. MURPHY
- Executive Director SeniorVice President President FREDERICK H. JOSEPH..
RICHARD E. BRUCE Drexel Burnham Lambert Realty S:nior Executive Vice President. SeniorVice President SYLVAN SCHEFLER ROGERJOSPG. 1.W. BURNHAM ll* Managing Director S:nior ExecutiveVice President - Honorary Chairman of the Board STANLEY SCHIFF EDWIN KANTOR The Drexel Burnham Lambert Group Inc. SeniorVice President Sinior Executive Vice President JON M. BURNHAM* . HERCULES A.SEGALAS Senior Executive Vice President ROBERT E.LINTON - SeniorVice President Chairman of the Board RICHARDJ.CAPALBO ALLAN L SHER
- President SeniorVice President ExecutiveVice President JOSEPH A.VITANZA HAIG M.CASPARIAN T
E ~ S:nior Executive Vice President ' Executive Vice President General Counsel MARTIN A.SIEGEL ALEXANDER J.CHAPRO - GERARD ESKENAZI Senior Vice President Monogmg Dimctor , DeputyChairman of the Board ALEXANDER THOMAS JOHN D. COFFIN. Praident Seni rVicePresident ExecutiveVice President Groupe Bruxelles Lambert S.A. JOSEPH A.VITANZA* ALBERT FRERE DANIEL COWIN President e pit Iinvestments, Inc. STEPHEN D.WEINROTH ho rman o t e Execut ve mmittee Groupe Bruxelles Lambert S.A. MAURITS E. EDERSHEIM, Monog,mg Dimctor BARON LEON LAMBERT Deputy Chairman of the Board RICHARDJ. WRIGHT ExecutiveVice President Chairman of the Board AARON R. ESHMAN Chief Financial Officer Groupe Bruxelles Lambert S.A. SeniorVice President JEAN LANIER MICHAEL E. GELLERT* Deputy Chairman of the Executive Director Executive Committee
- Memberof the Executive Committee EUGENE J.GLASER Lambert Brussels Corporation SeniorVice President JOSEPH M. MURPHY FREDERICK H. JOSEPH
- President Chief Executive Officer Lambert Brussels Corporat. ion ViceChairman of the Board GASTON THORN ROGER JOSP6*
President Senior Executive Vice President Banque Internationale 6 Luxembourg S.A.. EDWIN KANTOR* L ANDERS WALL
- Chairman of the Board DAVID G. KAY
' nvestment AB BElJER Monoging Director i
A y m 0 4 d S ( J v f-44- ) + A/ 4? w ~ .-w A / 4 J .g a h
- i15_i,
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