The secondary high-yield market was up this week, closing at % of par to yield 7.59%.

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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 18 bonds last week, bringing year-to-date issuance to more than $369 billion. The middle market launched eight new loan transactions last week for Camp Systems International, Confie Seguros, Container Store, Continental Building Products, Entercom Communications, Hostway, Phoenix Services and Vantage Specialty Chemicals. Loan and high-yield funds saw $726 million and $783 million in inflows, respectively. Year-to-date, loan funds have seen $49.4 billion in inflows, while inflows from high-yield funds total $2.36 billion. The secondary high-yield market was up this week, closing at % of par to yield 7.59%. Source: Piper Jaffray, S&P LCD, Bloomberg New Leveraged Loans In the Market Middle Market Facility. ($MM) LIBOR Senior Total Floor Spread OID Lev. Lev. Date Lead Arranger Sponsor Company Focus Camp Systems Int'l (1st) $ % L $100.0 NA NA Nov-13 DB GTCR Services Dividend Recap Camp Systems Int'l (2nd) $ % L $100.0 NA NA Nov-13 DB GTCR Services Dividend Recap Confie Seguros (1st) $ % L $100.0 NA NA Nov-13 RBC ABRY Partners Insurance Refinancing Confie Seguros (RC) $ % L $100.0 NA NA Nov-13 RBC ABRY Partners Insurance Refinancing Container Store (TLB) $ % L $100.0 NA NA Nov-13 JPM Leonard Green Retail Refinancing Continental Building (1st) $ % L $99.5 NA NA Nov-13 CS Lone Star Funds Building Materials Dividend Recap Continental Building (2nd) $ % L $99.0 NA NA Nov-13 CS Lone Star Funds Building Materials Dividend Recap Entercom (TLB) $ % L $100.0 NA NA Nov-13 BOA Not Sponsored Radio Refinancing Hostway (1st) $ % L $ x 4.3x Nov-13 SG Littlejohn & Co Electronics LBO Hostway (2nd) $ % L $ x 4.3x Nov-13 SG Littlejohn & Co Electronics LBO Hostway (RC) $ % L $ x 4.3x Nov-13 SG Littlejohn & Co Electronics LBO Phoenix Services (TLB) $ % L $100.0 NA NA Nov-13 CS Olympus Partners Metals & Mining Refinancing Vantage Specialty Chem. (TLB) $ % L $99.5 NA NA Nov-13 RBC Jordan Company Chemicals Dividend Recap Source: Piper Jaffray, S&P LCD, CIQ Purpose

2 New Leveraged Loans In the Market Large Cap Facility. ($MM) LIBOR Senior Total Floor Spread OID Lev. Lev. Date Lead Arranger Sponsor Company Focus Purpose Alliant Insurance (TLB) $ % L $100.0 NA NA Nov-13 MS KKR Insurance Refinancing Alliant Insurance (RC) $ % L $100.0 NA NA Nov-13 MS KKR Insurance Refinancing Ancestry.com (TLB) $ % L $99.0 NA NA Nov-13 MS Permira Electronics Refinancing CommScope Holding (TLB) $ % L $99.8 NA NA Nov-13 JPM Carlyle Group Telecom Refinancing Crown Holdings (TLA) $1, % L $99.5 NA NA Nov-13 Citigroup Not Sponsored Metals & Mining Acquisition Crown Holdings (RC) $ % L $99.5 NA NA Nov-13 Citigroup Not Sponsored Metals & Mining Acquisition General Nutrition (TLB) $1, % L $99.8 NA NA Nov-13 JPM Ares Management Retail Food & Drug Refinancing Go Daddy Group (TLB) $ % L $100.0 NA NA Nov-13 Barclays KKR Electronics Refinancing Intelsat S.A. (TLB) $ % L $100.0 NA NA Nov-13 BOA BC Partners Telecom Refinancing Intelsat S.A. (RC) $ % L $100.0 NA NA Nov-13 BOA BC Partners Telecom Refinancing Isola USA (TLB) $ % L $ x 5.7x Nov-13 Jefferies TPG Electronics Refinancing Kenan Advantage Group (TLB) $ % L $99.0 NA NA Nov-13 Key Bank Not Sponsored Transportation Acquisition Kenan Advantage Group (RC) $ % L $99.0 NA NA Nov-13 Key Bank Not Sponsored Transportation Acquisition Landry's Restaurants (TLB) $1, % L $100.0 NA NA Nov-13 Jefferies Not Sponsored Restaurants Refinancing Manitowoc Co (TLB) $200.0 TBD TBD TBD NA NA Nov-13 JPM Not Sponsored Manufacturing Refinancing Nexstar Broadcasting (TLB) $ % L $99.8 NA NA Nov-13 BOA Providence Equity TV Refinancing NXP Semiconductors (TLC) $ % L $99.0 NA NA Nov-13 DB KKR Electronics Refinancing OCI Beaumont (TLB) $ % L TBD NA NA Nov-13 BOA Not Sponsored Chemicals Refinancing RCN Corp (TLB) $ % L $100.0 NA NA Nov-13 SunTrust ABRY Partners Cable Refinancing Sealed Air Corp (TLB) $ % L $100.0 NA NA Nov-13 Citigroup Not Sponsored Chemicals Refinancing Starwood Property Trust (TLB) $ % L $99.8 NA NA Nov-13 CS Not Sponsored Real Estate Acquisition TransUnion (TLB) $ % L $100.0 NA NA Nov-13 DB Advent Int'l Services Refinancing Triumph Group (TLB) $375.0 TBD TBD TBD NA NA Nov-13 PNC Not Sponsored Defense Refinancing Tropicana Entertainment (TLB) $ % L $99.5 NA 2.7x Nov-13 CS Not Sponsored Gaming & Hotel Acquisition Tropicana Entertainment (RC) $ % L $99.5 NA 2.7x Nov-13 CS Not Sponsored Gaming & Hotel Acquisition Walker & Dunlop (TLB) $ % L $99.0 NA 3.9x Nov-13 Wells Fargo Fortress Services Refinancing WideOpenWest Finance (TLB) $ % L $100.0 NA NA Nov-13 JPM Avista Capital Telecom Refinancing Windstream (TLB) $ % L $99.5 NA NA Nov-13 JPM Not Sponsored Telecom Refinancing Source: Piper Jaffray, S&P LCD, CIQ Benchmark Yields Benchmark Current Previous Week (bps) Previous Year (bps) 2 yr UST 0.29% 0.29% % yr UST 1.38% 1.34% % yr UST 2.79% 2.69% % Source: 30 yr UST Bloomberg 3.89% 3.79% % M LIBOR 0.24% 0.24% % (7.0)

3 Weekly Corporate New Issue Activity (1) Investment Grade (2) Week of 11/18/2013 National Australia Bank Aaa N/A Financial $1,250 2/22/ % 2.0% Sr. Unsecured Westpac Banking Aaa N/A Financial $1,500 11/26/ % 1.9% Sr. Unsecured Westpac Banking Aa2 AA- Financial $1,250 11/25/ % 0.7% Sr. Unsecured Westpac Banking Aa2 AA- Financial $500 11/25/ % 1.1% Sr. Unsecured National Australia Bank Aa2 N/A Financial $750 12/2/ FRN FRN Sr. Unsecured Korea East-West Power A1 A+ Utilities $500 11/27/ % 2.8% Sr. Unsecured Trustee of Union College A1 N/A Education $41 11/15/ % 5.6% Sr. Unsecured Barclays Bank A2 A Financial $5 11/27/ FRN FRN Sr. Unsecured Caterpillar Financial A2 A Industrial $500 11/25/ % 1.0% Sr. Unsecured Caterpillar Financial A2 A Industrial $250 11/25/ FRN FRN Sr. Unsecured Caterpillar Financial A2 A Industrial $250 11/24/ % 3.8% Sr. Unsecured Honeywell International A2 A Industrial $700 11/17/ FRN FRN Sr. Unsecured Honeywell International A2 A Industrial $300 12/1/ % 3.4% Sr. Unsecured National Rural Utilities A2 A Financial $250 11/23/ FRN FRN Sr. Unsecured Southern Electric A2 A Utilities $100 12/1/ % 2.2% Sr. Unsecured Coca-Cola A2 A- Beverage $1,000 11/26/ % 2.4% Sr. Unsecured Coca-Cola A2 N/A Beverage $750 11/26/ % 4.1% Sr. Unsecured Coca-Cola A2 N/A Beverage $400 11/26/ % 5.4% Sr. Unsecured Lloyds Bank A2 N/A Financial $1,000 11/27/ % 2.3% Sr. Unsecured Capital One Bank USA A3 BBB+ Financial $600 11/21/ % 2.2% Sr. Unsecured Capital One Bank USA A3 BBB+ Financial $400 11/21/ % 1.2% Sr. Unsecured AT&T Inc A3 N/A Communications $1,600 11/27/ % 2.4% Sr. Unsecured AT&T Inc A3 N/A Communications $400 11/27/ FRN FRN Sr. Unsecured Fifth Third Bank A3 N/A Financial $1,000 11/18/ % 1.2% Sr. Unsecured Fifth Third Bank A3 N/A Financial $750 11/18/ FRN FRN Sr. Unsecured Key Bank A3 N/A Financial $400 11/25/ FRN FRN Sr. Unsecured Five Corners Funding Baa1 A Financial $1,500 11/15/ % 4.4% Sr. Unsecured Camden Property Trust Baa1 BBB+ Financial $250 1/15/ % 4.3% Sr. Unsecured Monongahela Power Baa1 BBB+ Utilities $600 12/15/ % 5.4% Sr. Unsecured Monongahela Power Baa1 BBB+ Utilities $400 4/15/ % 4.1% Sr. Unsecured Norfolk Southern Baa1 BBB+ Industrial $400 1/15/ % 3.9% Sr. Unsecured Sempra Energy Baa1 BBB+ Utilities $500 12/1/ % 4.1% Sr. Unsecured Tanger Properties Baa1 BBB+ Financial $250 12/1/ % 4.1% Sr. Unsecured DTE Energy Baa1 BBB Utilities $300 12/1/ % 3.9% Sr. Unsecured Aon Baa2 A- Financial $350 11/27/ % 4.0% Sr. Unsecured Bank of America Baa2 A- Financial $500 11/21/ % 1.4% Sr. Unsecured XLIT Ltd Baa2 A- Financial $300 12/15/ % 2.4% Sr. Unsecured XLIT Ltd Baa2 A- Financial $300 12/15/ % 5.3% Sr. Unsecured ProAssurance Corp Baa2 BBB+ Financial $250 11/15/ % 5.3% Sr. Unsecured Western Union Baa2 BBB+ Data Processing $250 5/22/ % 3.4% Sr. Unsecured Tyco Electronics Group N/A BBB+ Industrial $325 12/17/ % 2.5% Sr. Unsecured Fifth Third Bancorp Baa2 BBB Financial $750 1/16/ % 4.3% Sr. Unsecured DDR Corp Baa2 BBB- Financial $300 1/15/ % 3.6% Sr. Unsecured Domtar Corp Baa3 BBB- Basic Materials $250 2/15/ % 6.8% Sr. Unsecured (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

4 Weekly Corporate New Issue Activity (1) Investment Grade (2) Week of 11/18/2013 Mylan Inc Baa3 BBB- Pharmaceuticals $500 11/29/ % 1.4% Sr. Unsecured Mylan Inc Baa3 BBB- Pharmaceuticals $500 3/28/ % 2.6% Sr. Unsecured Mylan Inc Baa3 BBB- Pharmaceuticals $500 11/29/ % 4.2% Sr. Unsecured Mylan Inc Baa3 BBB- Pharmaceuticals $500 11/29/ % 5.4% Sr. Unsecured Empresa De Energia Baa3 BB+ Utilities $749 11/10/ % 6.1% Sr. Unsecured CBL & Associates Baa3 N/A Financial $450 12/1/ % 5.4% Sr. Unsecured Morgan Stanley Baa3 N/A Financial $2,000 11/24/ % 5.1% Sr. Unsecured TRW Automotive Ba1 BBB- Auto Parts $400 12/1/ % 4.5% Sr. Unsecured Banco ABC Brasil N/A N/A Financial $4 5/28/ % 1.0% Sr. Unsecured Barclays Bank N/A N/A Financial $100 2/26/ FRN FRN Sr. Unsecured Branch Banking & Trust N/A N/A Financial $500 12/1/ % 1.1% Sr. Unsecured Branch Banking & Trust N/A N/A Financial $375 12/1/ FRN FRN Sr. Unsecured Credit Agricole N/A N/A Financial $5 11/27/ FRN FRN Sr. Unsecured Key Bank N/A N/A Financial $350 11/25/ % 1.1% Sr. Unsecured Pricoa Global Funding N/A N/A Financial $350 11/25/ % 1.2% Sr. Unsecured High Yield Week of 11/18/2013 Lifepoint Hospitals Ba1 N/A Healthcare Facilities $700 12/1/ % 5.5% Sr. Unsecured Pacific Rubiales Energy Ba2 BB+ Energy $1,300 1/26/ % 5.4% Sr. Unsecured Norbord Inc Ba2 BB- Industrial $240 12/1/ % 5.4% Sr. Secured Sabine Pass LNG Ba3 BB+ Energy $1,000 3/15/ % 6.3% Sr. Secured Forum Energy Technologies Ba3 BB Energy $400 10/1/ % 6.3% Sr. Unsecured Meritage Homes B1 B+ Homebuilding $100 4/15/ % 5.9% Sr. Unsecured Wesco Distribution B1 B+ Industrial $500 12/15/ % 5.4% Sr. Unsecured Calumet Specialty Products B2 B+ Energy $350 1/15/ % 7.9% Sr. Unsecured Avis Budget B2 B Auto Mobile Rentals $250 12/1/ FRN FRN Sr. Unsecured US Concrete Caa1 B Industrial $200 12/1/ % 8.5% Sr. Secured Liberty Tire Recycling Caa2 B- Industrial $225 10/1/ % 11.4% Sr. Unsecured Tervita Corp Caa2 CCC Industrial $335 2/15/18 + 1, % 11.9% Sr. Unsecured T-Mobile USA N/A BB Communications $1,000 1/15/ % 6.1% Sr. Unsecured T-Mobile USA N/A BB Communications $1,000 1/15/ % 6.5% Sr. Unsecured American Airlines N/A B+ Airlines $512 7/15/ % 5.6% Sr. Unsecured VEB Capital N/A N/A Financial $1,150 11/21/ % 5.9% Sr. Unsecured VEB Capital N/A N/A Financial $850 11/21/ % 4.2% Sr. Unsecured Yapi Ve Kredi Bankasi AS N/A N/A Financial $84 2/27/ % 1.3% Sr. Unsecured Total Bond Volume Week of 11/18/ YTD 2012 YTD YOY Change $MM # $MM # $MM # $MM # Investment Grade $31, $994,793 1,357 $949,711 1, % +11.0% High-Yield $10, $369, $358, % +11.5% Total Corporates $41, $1,364,406 2,085 $1,307,985 1, % +11.1% (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 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: $0Bloomberg $ Source: S&P LCD HIGH-YIELD INDEX SPREADS Moody s Rating: Ba2 Moody s Rating: B Spread To Worst High: /27/2013 Spread To Worst High: /22/ Source: Bloomberg Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 Low: /10/2013 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Current: +335 Nov Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 Low: /8/2013 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Current: +475 Nov-13 Source: Bloomberg DEBT CAPITAL MARKETS CONTACTS 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.