The secondary high-yield market was down this week, closing at % of par to yield 6.66%.

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1 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 28 bonds last week, bringing year-to-date issuance to more than $40 billion. The middle market launched eight new loan transactions last week for Apple Leisure, Eastman Kodak, Harvard Drug Group, Intelligrated, Paradigm, School Specialty, Vantage Specialty Chemicals and Waupaca Foundry. Loan and high-yield funds saw $883 million in inflows and $117 million in outflows, respectively. Year-to-date, loan funds have seen $3.1 billion in inflows, while inflows to high-yield funds total $1.4 billion. The secondary high-yield market was down this week, closing at % of par to yield 6.66%. Source: Piper Jaffray, S&P LCD, Bloomberg New Leveraged Loans In the Market Middle Market Middle Market Facility Amt. LIBOR ($MM) Floor Spread OID Lev. Lev. Date Lead Arranger Sponsor Company Focus Facility Amt. ($MM) LIBOR Floor Spread OID Lev. Lev. Date Lead Arranger Sponsor Company Focus Apple Leisure (TLB) $ % L $ x 5.5x Jan-13 Jefferies Bain Capital Gaming & Hotel LBO Apple Leisure (2nd) $ % L $ x 5.5x Jan-13 Jefferies Bain Capital Gaming & Hotel LBO Apple Leisure (RC) $20.0 TBD TBD TBD 3.8x 5.5x Jan-13 Jefferies Bain Capital Gaming & Hotel LBO Eastman Kodak (TLB) $844.0 TBD TBD TBD NA NA Jan-13 None Not Sponsored Electronics DIP Harvard Drug Group (TLB) $ % L $100.0 NA NA Jan-13 MS Court Square Healthcare Refinancing Intelligrated (1st) $ % L TBD NA NA Jan-13 RBC Permira Manufacturing Refinancing Paradigm (1st) $ % L $100.0 NA NA Jan-13 UBS Apax Partners Electronics Refinancing School Specialty (TLB) $50.0 TBD TBD TBD NA NA Jan-13 Bayside Not Sponsored Forest Product DIP Vantage Specialty Chem. (TLB) $ % L $100.0 NA NA Jan-13 RBC Jordan Company Chemicals Refinancing Waupaca Foundry (TLB) $ % L $99.5 NA NA Jan-13 GECC KPS Capital Metals & Mining Dividend Recap Source: Piper Jaffray, S&P LCD, CIQ Purpose Purpose Benchmark Yields Previous Week Previous Year Benchmark Current (bps) (bps) 2 yr UST 0.26% 0.27% (1.0) 0.23% yr UST 0.88% 0.85% % yr UST 2.01% 1.95% % yr UST 3.22% 3.13% % 9.9 3M LIBOR 0.30% 0.30% (0.5) 0.53% (23.2)

2 PIPER JAFFRAY DEBT CAPITAL MARKETS UPDATE Page 2 New Leveraged Loans In the Market Facility Amt. LIBOR Large Cap ($MM) Floor Spread OID Lev. Lev. Date Lead Arranger Sponsor Company Focus Purpose ADS Waste Holdings (TLB) $1, % L $100.0 NA NA Jan-13 DB Highstar Capital Environmental Refinancing Alliance Laundry Systems (1st) $ % L $100.0 NA NA Feb-13 BA Teachers' Private Manufacturing Refinancing BakerCorp (TLB) $ % L $ x 4.7x Jan-13 DB Permira Services Refinancing Berry Plastics (TLB) $1, % L $100.0 NA NA Jan-13 CS Apollo Chemicals Refinancing Catalent Pharma (TLB-1) $ % L $100.0 NA NA Feb-13 MS Blackstone Group Healthcare Refinancing Catalent Pharma (TLB-2) $ % L $100.0 NA NA Feb-13 MS Blackstone Group Healthcare Refinancing Colfax (TLA-1) $333.0 TBD L TBD NA NA Jan-13 DB Not Sponsored Manufacturing Refinancing Colfax (TLA-2) $456.0 TBD L TBD NA NA Jan-13 DB Not Sponsored Manufacturing Refinancing Colfax (TLB) $ % L $100.0 NA NA Jan-13 DB Not Sponsored Manufacturing Refinancing CommScope (TLB) $ % L $99.8 NA NA Jan-13 JPMChase Carlyle Group Telecom Equipment Refinancing Datatel (TLB) $1, % L $100.0 NA NA Jan-13 BA H&F Electronics Refinancing Dunkin' Brands (TLB) $1, % L $99.8 NA NA Jan-13 Barclays Bain Capital Restaurants Refinancing Dunkin' Brands (RC) $ % L TBD NA NA Jan-13 Barclays Bain Capital Restaurants Refinancing FairPoint Comm. (TLB) $ % L $99.0 NA NA Jan-13 MS Not Sponsored Telecom Refinancing FairPoint Comm. (RC) $75.0 TBD TBD TBD NA NA Jan-13 MS Not Sponsored Telecom Refinancing First Advantage (TLB) $ % L $99.0 NA NA Jan-13 BA Not Sponsored Services Acquisition First Advantage (RC) $40.0 TBD TBD TBD NA NA Jan-13 BA Not Sponsored Services Acquisition First Data (TLB) $ % L $99.8 NA NA Jan-13 CS KKR Services Refinancing Freescale Semi (TLB) $2, % L $99.0 NA NA Jan-13 Citi Blackstone Group Electronics Refinancing Hillman Companies (TLB) $ % L $ x 5.4x Jan-13 Barclays Oak Hill Capital Building Materials Refinancing Hubbard Radio (TLB) $ % L $100.0 NA NA Jan-13 MS Not Sponsored Radio Refinancing IMS Health (TLB) $ % L $100.0 NA NA Jan-13 BA TPG Electronics Refinancing INC Research (TLB) $ % L TBD NA NA Jan-13 JPMChase Avista Capital Services Refinancing istar Financial (TLB) $1, % L $100.0 NA NA Jan-13 JPMChase Not Sponsored Real Estate Refinancing Jo-Ann Stores (TLB) $ % L $100.0 NA NA Jan-13 JPMChase Leonard Green Retail Refinancing Kabel Deutschland (TLF-1) $ % L $100.0 NA NA Jan-13 Goldman Providence Cable Refinancing Kronos (1st) $1, % L $100.0 NA NA Jan-13 CS H&F Electronics Refinancing LifePoint Hospitals (TLB) $ % L $99.5 NA NA Jan-13 Citi Not Sponsored Healthcare Refinancing Microsemi (TLB) $ % L $100.0 NA NA Jan-13 MS Not Sponsored Electronics Refinancing NBTY (TLB) $1, % L $ x 3.7x Feb-13 Barclays Carlyle Group Retail Food & Drug Refinancing Neiman Marcus Group (TLB) $2, % L $100.0 NA NA Jan-13 CS TPG Retail Refinancing NRG Energy (TLB) $1, % L $100.0 NA NA Jan-13 Citi Not Sponsored Utilities Refinancing Par Pharmaceutical (TLB) $1, % L $100.0 NA NA Jan-13 BA TPG Healthcare Refinancing Party City Holdings (TLB) $1, % L $100.0 NA NA Jan-13 DB Thomas H. Lee Retail Refinancing Rite Aid (1st) $ % L $99.5 NA NA Feb-13 CIT Group Leonard Green Retail Food & Drug Refinancing Rite Aid (2nd) $ % L $99.0 NA NA Feb-13 CIT Group Leonard Green Retail Food & Drug Refinancing Sabre Holdings (TLB) $1,950.0 TBD TBD TBD NA NA Feb-13 BA Silver Lake Entertainment Refinancing Sabre Holdings (TLC) $250.0 TBD TBD TBD NA NA Feb-13 BA Silver Lake Entertainment Refinancing Sabre Holdings (RC) $352.0 TBD TBD TBD NA NA Feb-13 BA Silver Lake Entertainment Refinancing Sage Products (1st) $ % L $ x 6.1x Jan-13 Barclays Madison Dearborn Healthcare Refinancing ServiceMaster (TLB) $2, % L $99.3 NA NA Jan-13 JPMChase CD&R Services Refinancing Supervalu (TLB) $1, % L $98.5 NA 5.5x Jan-13 Goldman Not Sponsored Food & Beverage Refinancing Supervalu (RC) $ % L TBD NA 5.5x Jan-13 Wells Not Sponsored Food & Beverage Refinancing Tank Intermediate (TLB) $ % L $ x 4.3x Jan-13 GECC Leonard Green Manufacturing Refinancing Tervita Corporation (TLB) $ % L $99.0 NA NA Jan-13 RBC CAI Capital Environmental Refinancing Tervita Corporation (RC) $300.0 TBD TBD TBD NA NA Jan-13 RBC CAI Capital Environmental Refinancing Transaction Network (TLB) $ % L $ x 4.2x Jan-13 SunTrust SIRIS Capital Services LBO Transaction Network (2nd) $ % L $ x 4.2x Jan-13 SunTrust SIRIS Capital Services LBO Transaction Network (RC) $50.0 TBD TBD TBD 3.6x 4.2x Jan-13 SunTrust SIRIS Capital Services LBO WaveDivision Holdings (TLB) $ % L $100.0 NA NA Jan-13 Wells Oak Hill Capital Cable Refinancing WideOpenWest Finance (TLB) $1, % L $100.0 NA NA Jan-13 JPMChase Avista Capital Telecom Refinancing Source: Piper Jaffray, S&P LCD, CIQ

3 PIPER JAFFRAY DEBT CAPITAL MARKETS UPDATE Page 3 Weekly Corporate New Issue Activity (1) Investment Grade (2) Week of 1/28/2013 Ratings Amt Company Moody s S&P Industry ($MM) Maturity Spread Coupon Yield Transaction Type Berkshire Hathaway Aa2 AA+ Financial $1,000 2/11/ % 4.6% Sr. Unsecured Berkshire Hathaway Aa2 AA+ Financial $800 2/9/ % 1.6% Sr. Unsecured Berkshire Hathaway Aa2 AA+ Financial $500 2/11/ % 3.1% Sr. Unsecured Berkshire Hathaway Aa2 AA+ Financial $300 2/11/ % 0.8% Sr. Unsecured Yale-New Haven Hospital Aa3 N/A Healthcare Facilities $132 7/1/ % 4.4% Sr. Unsecured Hana Bank A1 A Financial $500 2/5/ % 1.5% Sr. Unsecured FMR A2 A+ Financial $400 2/1/ % 5.0% Sr. Unsecured FMR A2 A+ Financial $300 2/1/ % 5.2% Sr. Unsecured Air Products & Chemicals A2 A Basic Materials $400 2/3/ % 2.8% Sr. Unsecured Carnival A3 BBB+ Hotels and Resorts $500 2/5/ % 1.2% Sr. Unsecured FirstMerit Corporation A3 BBB Financial $250 2/4/ % 4.4% Sr. Unsecured Key Bank A3 N/A Financial $1,000 2/1/ % 1.7% Sr. Unsecured General Mills Baa1 BBB+ Packaged Foods $500 2/15/ % 4.2% Sr. Unsecured General Mills Baa1 BBB+ Packaged Foods $250 1/29/ FRN FRN Sr. Unsecured General Mills Baa1 BBB+ Packaged Foods $250 1/29/ % 0.9% Sr. Unsecured Gazprom Baa1 N/A Energy $900 2/6/ % 5.0% Sr. Unsecured Gazprom Baa1 N/A Energy $800 2/6/ % 3.9% Sr. Unsecured Mohawk Industries Ba1 BBB- Home Furnishings $600 2/1/ % 3.9% Sr. Unsecured Union 16 Leasing N/A N/A Financial $150 1/22/ % 1.9% Sr. Unsecured (1) Bold transactions denote Piper Jaffray underwriting participation. Does not include Supranational, Foreign Denominations, Sovereign, Special Purpose Entities or PJC issues. (2) Includes all split-rated issues Source: Piper Jaffray, Bloomberg

4 PIPER JAFFRAY DEBT CAPITAL MARKETS UPDATE Page 4 Weekly Corporate New Issue Activity (1) High-Yield Week of 1/28/2013 Company Ratings Amt Moody s S&P Industry ($MM) Maturity Spread Coupon Yield Transaction Type DR Horton Ba2 BB- Homebuilding $400 2/15/ % 3.6% Sr. Unsecured DR Horton Ba2 BB- Homebuilding $300 2/15/ % 4.8% Sr. Unsecured Sabine Pass Liquefaction Ba3 BB+ Energy $1,500 2/1/ % 5.6% Sr. Secured Lennar Ba3 BB- Homebuilding $525 11/15/ % 4.8% Sr. Unsecured Lennar Ba3 BB- Homebuilding $275 12/1/ % 4.1% Sr. Unsecured Netflix Ba3 BB- Communications $500 2/1/ % 5.4% Sr. Unsecured MCE Finance B1 BB- Casinos and Gaming $1,000 2/15/ % 5.0% Sr. Unsecured Global A&T Electronics B1 NR Semiconductors $625 2/1/ % 10.0% Sr. Secured Weekley Homes B2 BB- Industrial $200 2/1/ % 6.0% Sr. Unsecured Antero Resources B2 B+ Energy $525 12/1/ % 6.0% Sr. Unsecured Atlas Pipeline B2 B+ Energy $650 8/1/ % 5.9% Sr. Unsecured NCL Corporation B3 BB- Hotels and Resorts $300 2/15/ % 5.1% Sr. Unsecured H&E Equipment Services B3 B+ Trading Companies $630 9/1/ % 7.0% Sr. Unsecured NXP B3 B Industrial $500 2/15/ % 5.8% Sr. Unsecured Permian Holdings B3 B- Basic Materials $200 1/15/18 + 1, % 10.5% Sr. Secured Ashton Woods USA Caa1 B- Financial $300 2/15/ % 7.0% Sr. Unsecured First Data Corporation Caa1 B- Technology $785 1/15/ % 11.3% Sr. Unsecured Unifrax Corporation Caa1 B- Basic Materials $205 2/15/ % 7.5% Sr. Unsecured HD Supply Caa1 CCC+ Trading Companies $1,275 7/15/ % 7.5% Sr. Unsecured Orion Engineered Carbons Caa1 CCC+ Basic Materials $425 8/1/19 PIK FRN FRN Sr. Unsecured Talos Production Caa1 CCC+ Energy $300 2/15/ % 10.0% Sr. Unsecured Nord Anglia Education Caa2 CCC+ Education $150 2/15/18 PIK FRN FRN Sr. Unsecured Beazer Homes USA Caa2 CCC Homebuilding $200 2/1/ % 7.3% Sr. Unsecured Cementos Pacasmayo N/A BB+ Industrial $300 2/8/ % 4.6% Sr. Unsecured ESAL N/A BB Packaged Foods $500 2/5/ % 6.5% Sr. Unsecured Grupo Cementos de Chihuahua N/A B Industrial $260 2/8/ % 8.1% Sr. Secured Air Lease N/A N/A Financial $400 3/1/ % 4.8% Sr. Unsecured Emirates Airlines N/A N/A Airlines $750 2/28/ % 4.5% Sr. Unsecured Total Bond Volume Week of 1/28/ YTD 2012 YTD YOY Change $MM # $MM # $MM # $MM # Investment Grade $9, $117, $122, (4.2%) +9.1% High-Yield $13, $40, $44, (8.5%) +8.2% Total Corporates $23, $157, $166, (5.4%) +8.8% (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

5 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Spread To Worst Spread To Worst $ In Billions $ In Billions Issue No. 244: February 4, 2013 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 $400 $30 $300 $200 $20 $100 $10 $0 $0 Source: S&P LCD HIGH-YIELD INDEX SPREADS Moody s Rating: Ba Moody s Rating: B High: /5/ High: /5/ Current: Current: Low: /25/ Low: /25/ Theodore Christianson Head of Equity Private Placements & Debt Capital Markets theodore.j.christianson@pjc.com James Chiarelli Principal 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 HEADQUARTERS ARE LOCATED IN MINNEAPOLIS, MINNESOTA, WITH OFFICES ACROSS THE U.S. AND IN LONDON AND HONG KONG Piper Jaffray Companies (NYSE: PJC) is a leading, international middle market investment bank and institutional securities firm. Securities brokerage and investment banking services are offered in the United States through Piper Jaffray & Co., member SIPC and NYSE; in Europe through Piper Jaffray Ltd, authorized and regulated by the Financial Services Authority; and in Hong Kong through Piper Jaffray Asia Limited, Piper Jaffray Asia Securities Limited, and Piper Jaffray Asia Futures Limited, all of which are registered with the Hong Kong Securities and Futures Commission. Asset management products and services are offered through three separate investment advisory affiliates registered with the U.S. Securities and Exchange Commission: Fiduciary Asset Management, LLC; Piper Jaffray Investment Management LLC; and Piper Jaffray Private Capital, LLC Piper Jaffray Companies 800 Nicollet Mall, Minneapolis, Minnesota Additional information is available upon request.