PIPER JAFFRAY DEBT CAPITAL MARKETS UPDATE Page 1. New Leveraged Loans In the Market

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1 Issue Issue No. No. 256: 256: April April 29, 29, PIPER JAFFRAY DEBT CAPITAL MARKETS UPDATE Page 1 The Piper Jaffray Debt Capital Markets Update is published weekly and provides a summary and analysis of debt capital markets activity. To subscribe/unsubscribe, visit MARKET COMMENTARY The high-yield market priced 19 bonds last week, bringing year-to-date issuance to more than $140 billion. The middle market launched seven new loan transactions last week for Arctic Glacier Fund, Fairway Group Holdings, Liquidnet Holdings, Packaging Coordinators, SI Organization, Sprint Industrial and Summit Business Media. Loan and high-yield funds saw $1.11 billion and $521 million in inflows, respectively. Year-to-date, loan funds have seen $17.0 billion in inflows, while inflows to high-yield funds total $1.23 billion. The secondary high-yield market was down this week, closing at % of par to yield 6.28%. Source: Piper Jaffray, S&P LCD, Bloomberg New Leveraged Loans In the Market Middle Market Facility Amt. ($MM) Source: Piper Jaffray, S&P LCD, Capital IQ LIBOR Senior Total Floor Spread OID Lev. Lev. Date Lead Arranger Sponsor Company Focus Arctic Glacier Fund (TLB) $ % L $99.0 NA NA Apr-13 CS HIG Capital Food & Beverage Refinancing Arctic Glacier Fund (RC) $ % L $99.0 NA NA Apr-13 CS HIG Capital Food & Beverage Refinancing Fairway Group Holdings (TLB) $ % L $100.0 NA NA Apr-13 CS Sterling Retail Food & Drug Refinancing Fairway Group Holdings (RC) $ % L $100.0 NA NA Apr-13 CS Sterling Retail Food & Drug Refinancing Liquidnet Holdings (TLB) $ % L $99.0 NA NA Apr-13 Jefferies Summit Partners Services Recap Packaging Coordinators (TLB) $ % L $99.0 NA NA Apr-13 GE Capital Frazier Healthcare Services Acquisition Packaging Coordinators (RC) $ % L $99.0 NA NA Apr-13 GE Capital Frazier Healthcare Services Acquisition SI Organization (TLB) $ % L $99.8 NA NA Apr-13 JPM Veritas Capital Aerospace Acquisition Sprint Industrial (1st) $ % L $99.0 NA NA Apr-13 GS First Atlantic Oil & Gas Refinancing Sprint Industrial (2nd) $ % L $99.0 NA NA Apr-13 GS First Atlantic Oil & Gas Refinancing Sprint Industrial (RC) $ % L $99.0 NA NA Apr-13 GS First Atlantic Oil & Gas Refinancing Summit Business Media (TLA) $ % L $99.0 NA NA Apr-13 GE Capital Not Sponsored Publishing Refinancing Summit Business Media (RC) $ % L $99.0 NA NA Apr-13 GE Capital Not Sponsored Publishing Refinancing Purpose

2 PIPER JAFFRAY DEBT CAPITAL MARKETS UPDATE Page 2 New Leveraged Loans In the Market Large Cap Source: Piper Jaffray, S&P LCD, CIQ Facility Amt. ($MM) LIBOR Senior Total Floor Spread OID Lev. Lev. Date Lead Arranger Sponsor Company Focus Albertson's (TLB) $1, % L $100.0 NA NA Apr-13 Citigroup Cerberus Capital Retail Food & Drug Refinancing Altisource Solutions (TLB) $ % L TBD NA NA Apr-13 BOA Not Sponsored Services Acquisition Calpine (TLB) $1, % L $99.8 NA NA Apr-13 GS Not Sponsored Utilities Refinancing Catalent Pharma (TLB) $ % L $99.8 NA NA Apr-13 MS Blackstone Group Healthcare Refinancing CCC Information (TLB) $ % L $100.0 NA NA Apr-13 GS Leonard Green Electronics Refinancing Coinmach (1st) $770.0 TBD TBD TBD 3.3x 4.8x Apr-13 DB Pamplona Capital Services LBO Coinmach (2nd) $325.0 TBD TBD TBD 3.3x 4.8x Apr-13 DB Pamplona Capital Services LBO Coinmach (RC) $75.0 TBD TBD TBD 3.3x 4.8x Apr-13 DB Pamplona Capital Services LBO CompuCom Systems (TLB) $ % L $99.0 NA NA Apr-13 Citigroup Thomas H. Lee Electronics LBO Constellation Brands (TLB) $1, % L $99.8 NA NA Apr-13 JPM Not Sponsored Food & Beverage Acquisition EP Energy (TLB) $ % L $100.0 NA NA Apr-13 Citigroup Apollo Oil & Gas Refinancing Grede Holdings (TLB) $ % L $100.0 NA NA Apr-13 GE Capital Wayzata Metals & Mining Refinancing Grohe Holding (TLB) $ % L $100.0 NA NA Apr-13 CS DLJ Merchant Bank Building Materials Refinancing HCA (TLB) $2, % L $100.0 NA NA Apr-13 BOA Bain Capital Healthcare Refinancing Ineos Group (TLB) $ % L $100.0 NA NA Apr-13 Barclays Ineos Capital Chemicals Refinancing Learning Care Group (TLB) $220.0 TBD L TBD NA NA Apr-13 BOA MS Capital Services Refinancing Learning Care Group (RC) $40.0 TBD L TBD NA NA Apr-13 BOA MS Capital Services Refinancing National CineMedia (TLB) $ % L $100.0 NA NA Apr-13 Barclays Not Sponsored Services Refinancing National CineMedia (RC) $ % L $100.0 NA NA Apr-13 Barclays Not Sponsored Services Refinancing Nextera Energy (TLB) $1, % L $99.0 NA NA Apr-13 BOA Not Sponsored Utilities Recap Orchard Brands (1st) $ % L $100.0 NA NA Apr-13 Jefferies Cerberus Capital Retail Refinancing Orchard Brands (2nd) $ % L $100.0 NA NA Apr-13 Jefferies Cerberus Capital Retail Refinancing Otter Products (TLB) $ % L $98.5 NA NA Apr-13 Wells Fargo Not Sponsored Chemicals Acquisition Otter Products (RC) $ % L $98.5 NA NA Apr-13 Wells Fargo Not Sponsored Chemicals Acquisition Peninsula Gaming (TLB) $ % L $100.0 NA NA Apr-13 BOA Not Sponsored Gaming & Hotel Refinancing PowerTeam Services (1st) $ % L $99.0 NA NA Apr-13 CS Kelso Utilities LBO PowerTeam Services (2nd) $ % L $99.0 NA NA Apr-13 CS Kelso Utilities LBO SS&C Technologies (TLB-1) $ % L $100.0 NA NA Apr-13 DB Not Sponsored Electronics Refinancing SS&C Technologies (TLB-2) $ % L $100.0 NA NA Apr-13 DB Not Sponsored Electronics Refinancing Surgical Care Affiliates (TLB) $ % L $99.5 NA NA Apr-13 JPM Texas Pacific Group Healthcare Refinancing Virtu Financial (TLB) $ % L $99.8 NA NA Apr-13 CS Silver Lake Services Dividend Recap Warner Music Group (TLB) $ % L $99.5 NA NA Apr-13 CS Access Industries Entertainment Acquisition Purpose Benchmark Yields Previous Week Previous Year Benchmark Current (bps) (bps) 2 yr UST 0.21% 0.23% (1.9) 0.26% (4.5) 5 yr UST 0.68% 0.71% (2.6) 0.81% (12.7) 10 yr UST 1.66% 1.70% (4.2) 1.91% (25.0) 30 yr UST 2.86% 2.88% (2.4) 3.11% (25.0) 3M LIBOR 0.28% 0.28% (0.0) 0.47% (19.0)

3 PIPER JAFFRAY DEBT CAPITAL MARKETS UPDATE Page 3 Weekly Corporate New Issue Activity (1) Investment Grade (2) Week of 4/22/ Ratings Amt Company Moody s S&P Industry ($MM) Maturity Spread Coupon Yield Transaction Type Neder Waterschapsbank Aaa AAA Financial $900 10/27/ FRN FRN Sr. Unsecured Microsoft Aaa N/A Technology $1,000 5/1/ % 2.4% Sr. Unsecured Microsoft Aaa N/A Technology $500 5/1/ % 3.8% Sr. Unsecured Microsoft Aaa N/A Technology $450 5/1/ % 1.0% Sr. Unsecured Sparebank 1 Boligkreditt Aaa N/A Financial $1,000 5/2/ % 1.4% Sr. Unsecured Toronto-Dominion Bank Aa1 AA- Financial $1,500 4/30/ % 1.4% Sr. Unsecured Toronto-Dominion Bank Aa1 AA- Financial $750 4/30/ FRN FRN Sr. Unsecured Hamilton College Aa2 N/A Education $103 7/1/ % 4.9% Sr. Unsecured Nike A1 A+ Footwear $500 5/1/ % 2.3% Sr. Unsecured Nike A1 A+ Footwear $500 5/1/ % 3.6% Sr. Unsecured Korea Resources A1 N/A Energy $500 5/2/ % 2.2% Sr. Unsecured Diageo Capital A3 A- Distillers and Vintners $1,350 4/29/ % 2.7% Sr. Unsecured Diageo Capital A3 A- Distillers and Vintners $750 4/29/ % 0.7% Sr. Unsecured Diageo Capital A3 A- Distillers and Vintners $650 4/29/ % 1.2% Sr. Unsecured Diageo Capital A3 A- Distillers and Vintners $500 4/29/ % 4.0% Sr. Unsecured JPMorgan Chase A3 A- Financial $2,000 5/1/ % 3.4% Sr. Unsecured Goldman Sachs Group A3 N/A Financial $1,250 4/30/ FRN FRN Sr. Unsecured Morgan Stanley Baa1 A- Financial $2,500 4/25/ % 2.1% Sr. Unsecured Morgan Stanley Baa1 A- Financial $1,400 2/25/ % 1.8% Sr. Unsecured Morgan Stanley Baa1 A- Financial $1,050 2/25/ FRN FRN Sr. Unsecured Morgan Stanley Baa1 A- Financial $700 4/25/ FRN FRN Sr. Unsecured QBE Insurance Group Baa1 N/A Financial $600 5/1/ % 2.4% Sr. Unsecured Citigroup Inc Baa2 A- Financial $1,350 5/1/ % 1.8% Sr. Unsecured Cox Communications Baa2 BBB Communications $1,000 6/30/ % 3.0% Sr. Unsecured Cox Communications Baa2 BBB Communications $500 6/30/ % 4.5% Sr. Unsecured Transport De Gas Peru Baa2 BBB Utilities $850 4/30/ % 4.3% Sr. Unsecured Turkiye Is Bankasi Baa2 N/A Financial $750 10/10/ % 3.9% Sr. Unsecured Kansas City Southern de Mexico Baa3 BBB- Industrial $450 5/15/ % 3.0% Sr. Unsecured Kansas City Southern de Mexico Baa3 BBB- Industrial $450 5/15/ % 4.4% Sr. Unsecured Kansas City Southern de Mexico Baa3 BBB- Industrial $275 5/15/ % 2.4% Sr. Unsecured Kazmunaygas National Baa3 BBB- Energy $2,000 4/30/ % 5.8% Sr. Unsecured Kazmunaygas National Baa3 BBB- Energy $1,000 4/30/ % 4.5% Sr. Unsecured Air Canada Baa3 N/A Airlines $424 5/15/ % 4.1% Sr. Unsecured (1) Bold transactions denote Piper Jaffray underwriting participation. Does not include Supranational, Foreign Denominations, Sovereign, Special Purpose Entities or PJC issues. Source: Piper Jaffray, Bloomberg

4 PIPER JAFFRAY DEBT CAPITAL MARKETS UPDATE Page 4 Weekly Corporate New Issue Activity (1) High-Yield Week of 4/22/ Ratings Amt Company Moody s S&P Industry ($MM) Maturity Spread Coupon Yield Transaction Type Andrade Gutieriez Ba1 N/A Diversified $500 4/30/ % 4.1% Sr. Unsecured Banco GNB Sudameris Ba1 N/A Financial $300 5/2/ % 4.1% Sr. Unsecured Regions Financial Ba1 N/A Financial $750 5/15/ % 2.1% Sr. Unsecured AES Corporation Ba3 BB- Utilities $500 5/15/ % 4.9% Sr. Unsecured CST Brands Ba3 BB- Automotive Retail $550 5/1/ % 5.0% Sr. Unsecured Resolute Forest Products Ba3 BB- Basic Materials $600 5/15/ % 6.0% Sr. Unsecured Promsvyazbk Ba3 N/A Financial $600 11/6/ % 10.2% Sr. Unsecured Schaeffler Finance Ba3 N/A Auto Parts $850 5/15/ % 4.8% Sr. Secured Regency Energy Partners B1 BB Energy $600 11/1/ % 4.5% Sr. Unsecured Air Canada B1 N/A Airlines $182 5/15/ % 5.4% Sr. Unsecured Hiland Partners B3 B- Energy $550 10/1/ % 7.3% Sr. Unsecured Rex Energy B3 B- Energy $350 12/1/ % 9.0% Sr. Unsecured Air Canada B3 N/A Airlines $108 5/15/ % 6.6% Sr. Unsecured Associated Materials Caa1 B- Industrial $100 11/1/ % 7.5% Sr. Secured Spencer Spirit Holdings Caa1 CCC+ Specialty Stores $165 5/1/18 PIK FRN FRN Sr. Unsecured Realogy Group Caa2 B- Financial $500 5/1/ % 3.4% Sr. Unsecured Credit Bank Of Moscow N/A N/A Financial $500 11/13/ % 8.7% Sr. Unsecured Far Eastern Shipping N/A N/A Industrial $500 5/2/ % 8.0% Sr. Secured S.A.C.I. Falabella N/A N/A Department Stores $500 4/30/ % 3.9% Sr. Unsecured Total Bond Volume Week of 4/22/ YTD 2012 YTD YOY Change $MM # $MM # $MM # $MM # Investment Grade $29, $363, $346, % +9.1% High-Yield $8, $143, $141, % +6.3% Total Corporates $38, $506, $488, % +8.0% (1) Bold transactions denote Piper Jaffray underwriting participation. Does not include Supranational, Foreign Denominations, Sovereign, Special Purpose Entities or Piper Jaffray issues. (2) Includes all split-rated issues Source: Piper Jaffray, Bloomberg

5 PIPER JAFFRAY DEBT CAPITAL MARKETS UPDATE Page 5 LOAN & BOND VOLUME Leveraged Loan & HY Volume Middle Market Loan Volume $600 $500 Leveraged Loans High-Yield Bonds $50 $40 $ In Billions $400 $300 $200 $ In Billions $30 $20 $100 $10 $ $ Source: S&P LCD HIGH-YIELD INDEX SPREADS Moody s Rating: Ba Moody s Rating: B High: /5/2012 High: /5/ Spread To Worst Low: /25/ Current: +350 Spread To Worst Current: +498 Low: /11/ Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 Theodore Christianson Head of Equity Private Placements & Debt Capital Markets theodore.j.christianson@pjc.com James Chiarelli Managing Director james.d.chiarelli@pjc.com Information contained in this publication is based on data obtained from sources we deem to be reliable, however, it is not guaranteed as to accuracy and does not purport to be complete. Nothing contained in this publication is intended to be a recommendation of a specific security or company nor is any of the information contained herein intended to constitute an analysis of any company or security reasonably sufficient to form the basis for any investment decision. PIPER JAFFRAY IS A LEADING INVESTMENT BANK AND ASSET MANAGEMENT FIRM. Piper Jaffray Companies is an investment bank and asset management firm headquartered in Minneapolis with offices across the U.S. and in London, Hong Kong* and Zurich. Securities brokerage and investment banking services are offered in the United States through Piper Jaffray & Co., member NYSE and SIPC, and in Europe through Piper Jaffray Ltd., authorized and regulated by the Financial Conduct Authority. Asset management products and services are offered through three separate investment advisory affiliates registered with the U.S. Securities and Exchange Commission: Advisory Research Inc., Piper Jaffray Investment Management LLC and PJC Capital Partners LLC. Piper Jaffray Companies 800 Nicollet Mall, Minneapolis, Minnesota Additional information is available upon request.