SPP s Middle Market Leverage Cash Flow Market At A Glance

Transcription

1 Market Update April 2013 SPP s Middle Market Leverage Cash Flow Market At A Glance Deal Component April 13 March 13 April 12 Cash Flow Senior Debt (x EBITDA) <$8MM EBITDA 1.50x2.50x >$10MM EBITDA >$25MM EBITDA 2.50x4.00x <$8MM EBITDA 1.50x >$10MM EBITDA >$25MM EBITDA 2.50x3.50x <$10MM EBITDA 1.50x2.25x >$15MM EBITDA 2.50x3.50x >$25MM EBITDA 2.75x4.00x Total Debt Limit (x EBITDA) <$8MM EBITDA 4.25x >$10MM EBITDA 3.50x4.50x >$25MM EBITDA 4.00x <$8MM EBITDA 4.00x >$10MM EBITDA 3.50x4.50x >$25MM EBITDA 4.00x <$10MM EBITDA 4.00x >$15MM EBITDA 3.50x4.75x >$25MM EBITDA 4.00x Senior Cash Flow Pricing L+3.50%4.50% (bank) L+4.50%6.50% (nonbank) L+3.50%4.50% (bank) L+4.50%6.50% (nonbank) L+3.50%4.50% (bank) L+4.50%6.00% (nonbank) Second Lien Pricing (Avg) <$10MM EBITDA L+9.00%12.00% floating (1.0% floor) >$15MM EBITDA L+7.50%9.00% floating (1.0% floor) <$10MM EBITDA L+9.00%12.00% floating (1.0% floor) >$15MM EBITDA L+7.50%9.00% floating (1.0% floor) L+8.00%10.00% (with 1.0% floor) Subordinated Debt Pricing <$10MM EBITDA 14.0%17.0% >$15MM EBITDA 13.0%15.0% >$25MM EBITDA 11.0%14.0% <$10MM EBITDA 14.0%17.0% >$15MM EBITDA 13.0%15.0% >$25MM EBITDA 11.0%14.0% <$10MM EBITDA 14.0%17.0% >$15MM EBITDA 13.0%15.0% >$25MM EBITDA 12.0%14.0% OneStop Pricing <$8MM EBITDA 10.0%12.0% >$10MM EBITDA L+7.50%9.00% <$8MM EBITDA 10.0%12.0% >$10MM EBITDA L+7.50%9.00% 8.5%11.5% fixed L+8.00%9.00% floating (1.0% floor) Warrants Feature Coupononly deals the norm in the market absent compelling circumstances (>4.5x leverage, sub$7.5 million EBITDA, challenged/distressed credits). Coupononly deals the norm in the market absent compelling circumstances (>4.5x leverage, sub$7.5 million EBITDA, challenged/distressed credits). Coupononly deals the norm in the market absent compelling circumstances (>4.5x leverage, sub $7.5 million EBITDA, challenged/distressed credits). Libor Floors No Libor floor for most bank deals 1.0%1.5% for nonbank deals No Libor floor for most bank deals 1.0%1.5% for nonbank deals 0.0%1.0% for most bank club deals 1.0%1.75% for syndicated or nonbank deals in most cases Mezzanine Opt. Prepayment (first 3 years) Highly negotiated; coupononly deals (no warrants) seeking nocall 12 years, with declining prepayment penalties (3.0%, 2.0%, 1.0%, par). Significantly more latitude in warrant deals (SBIC maximum limited to 5.0%, 4.0%, 3.0%, 2.0%, 1.0%). As coupononly deals dominate, prepayment premiums scrutinized. Highly negotiated; coupononly deals (no warrants) seeking nocall 12 years, with declining prepayment penalties (3.0%, 2.0%, 1.0%, par). Significantly more latitude in warrant deals (SBIC maximum limited to 5.0%, 4.0%, 3.0%, 2.0%, 1.0%). As coupononly deals dominate, prepayment premiums scrutinized. Highly negotiated; most mezzanine lenders seeking increased call protection on coupononly deals (i.e., noncall 12 years, with declining coupon 3.0%, 2.0%, 1.0%, par). Significantly more latitude in warrant deals (SBIC 5.0%, 4.0%, 3.0%, 2.0%, 1.0%). As coupononly deals dominate, prepayment premiums scrutinized. Minimum Equity Contribution 25.0%35.0% total equity (including rollover); minimum 20.0% new cash in. 25.0%35.0% total equity (including rollover); minimum 20.0% new cash in. 25.0%35.0% Recap Liquidity Recap liquidity is still solid across the market, but there are increased investor expectations of equity upside for smaller transactions or for a fundless sponsor. Commercial banks are generally less competitive in recaps except for those involving existing customers, though liquidity of nonbank commercial lenders and onestops is more than enough to compensate. SBICs are technically prohibited from dividend deals by SBA regs. Recap liquidity continues to be abundant. Pronounced dearth of new recap opportunities after crush of. Gone is the pricing discrimination associated with recaps, though lenders do report a continued resistance where money out significantly exceeds initial investment. Plentiful; market making little distinction on use of proceeds if underlying asset is performing well. Stricter provisions in nonsponsored deals. Story Receptivity deal activity was surprisingly light and, accordingly, constituted a particularly patient and receptive market for more storied paper. Late March deal flow picked up significantly which could reduce the appetite and time required to review more complex stories. While there is still an oversupply of capital compared to the relatively meager supply of new offerings, storied issuers would be well served to get in earlier rather than later to get deals done while they can. Strong economic data could also suggest a bullish approach to cyclical issuers. Lack of new deal activity combined with fresh allocations of new capital to be deployed in 2013 has resulted in exceedingly receptive conditions for storied paper in both assetbacked and cash flow structures, especially in the nonbank commercial lending constituency. Likely to be among the best opportunity of the new year to bring challenged credits to market or any financing where existing credit relationships are strained. Financing markets remain exceedingly liquid and open to storied credits and deals with a little hair. Credit opportunity funds awash in cash willing to dig deep but expect more mezzaninelike returns for senior debt. *Changes from last month in red

2 Let the stories be told They can say what they want Let the photos be old Let them show what they want Individual Net Worth Let them leave you up in the air Let them brush your rock and roll hair Let the good times roll Let the good times rolloll Won't you let the good times roll Good times roll. Good Times Roll, The Cars Good Times Roll Notwithstanding some significant headwinds (most of our own making), the most recent spate of economic releases signal an increasingly strengthening economy characterized by greater spending by both consumers and industry, a rapidly recovering housing market, higher employment levels, increased manufacturing activity, recordsetting stock market prices, and an almost complete restoration of household net worth to prerecession levels. kicked off with widespread macroeconomic trepidation respecting an economy which had actually contracted 0.1% during (though GDP has been subsequently upwardly revised to a meager +0.4%). The imposition of higher individual tax rates, a return of the payroll tax, draconian reductions in government spending through sequestration, and another selfimposed debt ceiling crisis conspired to stall consumer spending, curtail industrial production, contract the labor rolls, and quash confidence in both the economy and equity markets. What happened instead? The Dow rallied to a record close at 14,578 (ending its best first quarter in 15 years) and the S&P hit an alltime high of 1,569 (topping its previous closing high of 1,565, set in October 2007). It should not be lost on anyone that the S&P highs were achieved smack in the middle of a Cypriot banking crisis that threatened another round of Eurozone dysfunction. Source: Flagstar Bank Economic Outlook Source: Institute for Supply Management ISM Manufacturing Index Series Series Percentage Rate Index Index Point of Trend* Index Feb Jan Change Direction Change (Months) PMI Growing Faster 3 New Orders Growing Faster 2 Production Growing Faster 6 Employment Growing Slower 41 Supplier Slowing Slower 4 Inventories Growing Faster 2 Customers' Too Low Faster 15 Prices Increasing Faster 7 Backlog of Growing From Contracting 1 Exports Growing Faster 3 Imports Growing From Unchanged 1 6.0% 4.0% 2.0% 0.0% 2.0% 4.0% 6.0% 5.3% 0.3% OVERALL ECONOMY Manufacturing Sector MANUFACTURING AT A GLANCE Feb13 Quarterly Growth in Real GDP 1.4% 4.0% 2.3% 2.2% 2.6% 2.4% 0.1% Growing Faster 45 Growing Faster 3 2.5% 1.3% 4.1% 2.0% 1.3% 3.1% 0.1% There have been some mixed reports on the strength of the economy in March. The Conference Board s Consumer Confidence Index fell sharply in March (59.7) after a strong showing in February (68.0), while the University of Michigan s Consumer Sentiment Index for the same period registered some gains in March. As a general proposition, we enter with some very encouraging economic trends: New orders for durable goods jumped 5.7% in March (buoyed by strong demand for both defense and nondefense aircraft); Housing continues to be strong: new and existing home sales continue to trend positive for the first quarter. Sales of existing homes rose by 0.6% in February reaching a 4.98 million annual rate (best since the when first time homebuyer tax credit boosted sales). Home prices continue to strengthen: the Case Schiller 20 City composite House Price Index is up 0.1% for the month and 8.1% over the previous 12 months; Real consumer spending increased 0.3% in February and retail sales are also hitting new highs, now exceeding prerecession highs in each of the last three months. Retail sales rose 1.1% from January and are up 4.5% from a year ago; Corporate spending has also increased: after a precipitous drop of 23.8% in of, sales rebounded to a +21.3% in and Source: BEA 12.0% 9.9% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Source: BLS Unemployment Rate 8.9% 8.2% 7.7%

3 continue to grow in January capital goods orders were up approximately 13.0% from September ; The number of Americans seeking unemployment fell by 7,000 the first week of March driving the fourweek average of new unemployment claims to its lowest levels in five years (348,750). In February, nonfarm payrolls swelled by 236,000 new jobs, up from 119,000 in January. The unemployment rate stands at 7.7%, the lowest unemployment rate since December of Though approximately 12 million people still remain unemployed (three million more than the prerecession highs), for the first three months of 2013, the U.S. economy is adding 191,000 jobs on average. One negative among the otherwise frothy employment data is that the participation rate contracted slightly from 63.6% to 63.5% (representing an increase in people who have given up looking for work and technically not unemployed ); Manufacturing continues to rebound as well. The February ISM (Institute for Supply Management) reported that economic activity in the manufacturing sector expanded in February for the third consecutive month, and the overall economy grew for the 45th consecutive month. The ISM Manufacturing Index PMI came in at 54.2, up about a point from January and consistent with GDP growth of over 3.0% for 2013; and As a result of the significant gains in the stock market and the revival of home prices, Americans personal net worth is finally being restored to prerecession levels. As of the beginning of the year (and not taking into account the most recent gains in the equity markets in March), all but $1.4 trillion of the more than $16 trillion drop in personal net worth has been restored. The macroeconomic data points delineated above leave little debate respecting the underlying strength of the economy through. The bigger issue is what happens next: continued growth for the remainder of 2013, or a repeat of, and, where the first two quarters of robust economic resurgence gave way to anemic growth and economic dysfunction prompting the FED to intervene with additional Quantitative Easing and stimulus (QE1, QE2, and QE3). The FED is currently spending approximately $85 billion in new securities purchases a month. The FED s portfolio now stands at approximately $3 trillion. Chairman Bernanke is careful to emphasize his continued support for the current accommodative policy, but he also hinted that there remains some significant disagreement among the FOMC members on the advisability of continuing the current program. It should be noted that the last time the FED hinted at doubts among some FOMC members respecting the efficacy of the current program, the markets reacted in a rather marked fashion. On Wednesday, February 20 th of this year, the FOMC minutes included a note that a number of participants stated that an ongoing evaluation of the efficacy, costs, and risks of asset purchases might well lead the committee to taper or end its purchases before it is judged that a substantial improvement in the outlook for the labor market had occurred. The following day, the S&P 500 logged its worst day of 2013 (its steepest daily percentage decline since midnovember) and the Dow ended the day below 14,000. But for now: Source: BLS Labor Force Participation Rate 65.5% 64.9% 65.0% 64.5% 64.2% 64.0% 63.8% 63.5% 63.5% 63.0% 62.5% Average Debt Multiples of Large Corporate Loans 7.00x 4.69x 4.51x 3.90x 4.33x 4.00x FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA Average Debt Multiples of Middle Market Loans 4.54x 4.00x 3.80x 3.78x 3.86x FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA PE Capital Overhang By Fund Size & Vintage Let the good times roll. Private Market Highlights There seems to be little doubt that activity has come roaring back in March. After a particularly weak January and February (impacted in large part caused by the increased number of yearend closings prior the 2013 tax increases), issuers have returned en masse to prepping deals for. Investors report a dramatic increase in new inquiries; SPP s own anecdotal experience shows a 86.7% increase in new transaction registration for March 2013 vs. February 2013 (and a 211.1% increase over March ).

4 That said, the amount of new deals expected to hit the market in coming weeks will not likely impact current liquidity conditions too much. Competition for leveraged assets remains intense, and lenders/investors remain as aggressive as they have been for the last 24 months. To illustrate the abundance of capital available for deployment, SPPled transactions resulted in a 6.5x oversubscription rate for the period commencing January 1 st, through March 30 th, Financing from commercial banks remains the most selective and conservative of lenders to the middle market rarely stretching beyond 2.0x LTM EBITDA for cash flow transactions for nonsponsored transactions (routinely going to 2.5x LTM EBITDA for sponsored deals). The specter of Basel III (and more specifically, its Liquidity Coverage Ratio (LCR) requirements) also weighs on this lending sector. Notwithstanding the relative conservative position of the commercial bank lenders, alternative sources of capital are readily available, including nonbank commercial lenders, BDCs, credit opportunity funds, SBAs, hedge funds, and a variety of other commercial finance companies. The unitranche lending community also continues to constitute a major source of capital for middle market issuers. Middle Market Source Overview AssetBased Loans ABL lenders hungry for new deals and increasingly focused on the middle market. The market remains competitive and is characterized by increasing flexibility, including the usage of M&E (75.0%85.0% of appraised OLV) and real estate (70.0%80.0% of appraised FMV) in the borrowing base. Lenders require a positive fixed charge coverage (>1.0x) for funding, regardless of collateral coverage or quality of collateral. Lenders are comfortable with a modest (approx. 15.0%) air ball for traditional assetbased structures. Middle market pricing remains competitive: o L+1.50%2.25% for most clean deals (larger $150 million deals toward outer band); o L+2.50%3.00% for more storied credits; and o No Libor floors. Capex lines are readily available (80.0% of cost; amortization highly negotiable once drawn). Undrawn pricing ranges from 0.25%0.50% and is inversely related to usage of facility. Four to fiveyear maturities typical. Closing fees are in the 0.25%0.50% range. Senior Cash Flow Market Pricing remains competitive: o Best pricing at L+2.50%; the majority range from L 3.50%4.50%; o No floor in most commercial bank deals; o 1.00%1.50% floor for most nonbank commercial lenders; and o Fiveyear tenors are most common. Lower middle market pricing and leverage metrics: o Commercial banks are bidding sub$10 million EBITDA only in limited circumstances, pushing most borrowers to nonbank senior and onestop alternatives; o Sub$10 million EBITDA issuers with no sponsor rarely above 1.5x2.0x LTM EBITDA but sponsored deals often achieve 2.5x LTM EBITDA; YTD 2013 Deal Counts YTD YTD YTD 2013 YTD 2013 Exits YTD YTD YTD 2013 March March 2013 Deal Counts Mar Mar Mar 2013 March March 2013 Exits Mar Mar Mar 2013

5 In Billions In Billions o Less than $5 million EBITDA deals are generally limited to unitranche structures; and Term facilities are being priced at a 0.25%0.50% premium to revolving credit facilities. Amortization structures: o Commercial banks: The most common amortization is a seven to tenyear straight line with a balloon in year five; and Generally want to see a minimum of 25.0% 30.0% amortized in the first three years, but will consider slightly backloaded structures. o Nonbank commercial lenders: 1.0%5.0% amortization per annum with a 50.0% excess cash flow sweep. Pricing grids: o Commercial bank lenders: L+3.50%4.50% for leveraged middle market deals; Higher quality, less leveraged deals as low as 2.50%; L+4.50%5.50% for more cyclical issuers; Upfront fees: 0.375%0.563%; 0.250%0.375% unused generally higher where there are more unused proceeds; and Par call. o Nonbank commercial lenders: L+4.50%6.00% for <2.5x SD/EBITDA; L+5.00%6.00% for >2.5x SD/EBITDA; L+5.50%6.50% for <$10 million EBITDA; Upfront fees: 0.75%2.00%, 0.75% unused; and Prepayment penalties: no call year one, 1.0% in year two, par call in year three. OneStops/Unitranche Onestop lenders remain among the most liquid constituencies in the private capital markets. o Focused primarily on $5 million to $15 million in LTM EBITDA; and o Largely industry agnostic. Cash flowbased, less focused on asset coverage. Lenders generally can provide revolving credit facilities. o Will size the revolver in accordance with current assets; and o In cases where lender cannot provide a revolving credit facility, they will contract out the revolver to a local commercial bank. Amortization ranges from 0.0%10.0% per annum with an excess cash flow sweep. o Most lenders focus on 5.0% amortization per annum. Closing fees range from 2.00%3.00% with best pricing at 1.00%. Prepayment provisions range among investors, but the norm is a 3.0%, 2.0%, 1.0% declining premium. Investors include commercial finance companies, BDCs, traditional mezzanine funds, and credit opportunity funds. Lenders fall into two groups: o Senior debt focus: generally require greater stated amortization, but provide lower interest cost; or o Mezzanine focus: generally require less (or no) stated amortization, but on the higher end of the pricing grid. Total debt limitations range from 3.75x with an average of approximately 3.25x. o The most aggressive seen is 5.50x with an equity co Bank Debt and Bonds By Year $900 $800 $700 $600 $500 $ $ $200 $100 $ Pro Rata Institutional HighYield Bank Debt and Bonds By Month $140 $120 $ $ $60 $40 $20 $ Pro Rata Institutional HighYield NewIssue FirstLien Spreads L+700 L+600 L L L L+200 L+100 L+000 Pro Rata Institutional Percent Outstanding Loans in Default or Bankruptcy 10.00% 9.00% 8.31% 8.00% 7.00% 6.00% 5.00% 4.00% 2.98% 3.00% 2.67% 2.00% 1.44% 1.00% 0.00%

6 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 investment. Fixed charge coverage is routinely set at a 20.0% discount to projections with a floor of 1.20x. Pricing is surprisingly consistent across the credit spectrum: o 10.0%11.0% the norm for most credits; o Most competitive pricing at 9.0%; o Least competitive at 14.0%; and o Maturity commonly 5 years. 4.00x Historical Cash Flow Senior Debt (x EBITDA) Mezzanine Market Investors being squeezed by proliferation of onestop providers. 144A and public highyield market prices remain high, enhancing participation by hedge funds and credit opportunity funds. Creative mezzanine alternatives are abundant lastout notes, senior unsecured notes, secondlien notes, splitlien notes, preferred shares. A cash coupon of 11.0%12.0% is required. Allin (cash, PIK, and/or warrant) pricing schemes: o <$10 million EBITDA: 14.0%17.0%; o >$15 million EBITDA: 13.0%15.0%; and o >$20 million EBITDA: 11.0%14.0%. Coupononly: warrants rarely required, and limited to leveraged recaps with more than initial equity investment returned, lack of equity sponsor, smaller issuers, storied credits, or nosebleed leverage (in excess of 4.50x). o Investors routinely seeking silent secondlien positions; and o Current leverage metrics: <$8 million EBITDA: 4.25x; >$10 million EBITDA: 3.50x4.50x; >$25 million EBITDA: 4.00x; and Leveraged recaps or storied credits: 3.75x4.25x. Maturities are equal to the greater of five years or six months after maturity of the senior debt facility. Full participation by all investor constituencies: o Traditional LP funds, credit opportunity funds, captive bank funds, hedge funds, commercial finance companies, BDCs, credit opportunity funds, and insurance companies creating pricing pressure; and o Regional bank mezz funds often provide below market pricing dynamics: 13.0%15.0% subordinated and L+6.00%9.00% secondlien pricing for less than $15 million EBITDA issuers, but will only lend where the bank provides the senior debt; and Transactions are generally less than $15 million in aggregate principal amount. Minority equity and coinvest equity strips are readily available. Prepayment provisions are highly negotiable and very investorspecific. Upfront fees average 1.0%2.0%. SPP Tracked Market Activity Loan Availability, Capital Availability, Deal Counts, and Deal Registrations 4.00x Historical Total Debt Limit (x EBITDA) 900 bps 800 bps 700 bps 600 bps 500 bps 400 bps 300 bps 200 bps 100 bps 0 bps Historical Senior Cash Flow Pricing (Bank) Bank Bank Historical Senior Cash Flow Pricing (NonBank) 900 bps 800 bps 700 bps 600 bps 500 bps 400 bps 300 bps 200 bps 100 bps 0 bps NonBank NonBank The Federal Reserve Economic Data (FRED) shows loan issuance continuing its steady climb. Seasonally adjusted U.S. commercial loans at commercial banks eclipsed $1.52 trillion in February of 2013, up from a trough of $1.20 trillion in mid. S&P reports similar conditions in the middle market. February s staggering $2.04 billion in middlemarket loan

7 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 volume was the largest monthly total since January of While March loan volume saw a monthtomonth decline, it far exceeded loan volume for March of last year ($960 billion vs. $626 billion, respectively). Private equity acquisition activity has gotten off to a sluggish start in Deal count yeartodate has fallen dramatically, from over 500 deals in and down to an even 400 in March was particularly to blame, showing only 82 deals completed, far below that of March of and (160 and 201, respectively). This slow start is most likely a byproduct of an increase in middle market M&A activity at the end of in order to close deals prior to the fiscal cliff. However, Pitchbook reports that considerable capital is available in today s market as private equity firms continue to sit on approximately $350 billion of capital that needs to be put to work. Of that total, more than $100 billion is contributed by 2007 and 2008 vintage funds that are nearing the end of their investment mandates, providing increased urgency. Unsurprisingly, the abundance of available debt combined with the private equity market s need to put their funds to use has prompted a surge in new deal registrations. SPP has experienced a 86.7% increase in new transaction registration for March 2013 vs. February 2013 and a 211.1% increase over March. New deal registration at SPP for acquisitions has increased 100% from February 2013 to March 2013 and 200% yearoveryear. Given these leading indicators, SPP is optimistic for an escalation in upcoming deal activity for the remainder of Please feel free to call any of the professionals at SPP Capital to discuss a particular financing need, amendment or restructuring advisory, or just to get a little more color on the market; you don t need a deal ready to go to the market to call us. Our hope is that you use SPP as your go to resource for any information, analysis, and review of potential transactions. Stefan Shaffer Managing Partner (212) sshaffer@sppcapital.com 60% 50% 40% 30% 20% 10% 0% Historical Minimum Equity Contribution 18% 15% 12% 9% 6% 3% 0% Historical SecondLien Pricing LIBOR Floor LIBOR Floor 25% 20% 15% 10% Historical Subordinated Debt Pricing 5% 0% Secondary High Yield Pricing DISCLAIMER: The "SPP Leveraged Cash Flow Market AtAGlance" and supporting commentary is derived by the anecdotal experience of SPP Capital Partners, LLC, its specific transactions, discussion with issuers, lenders and investors consistent with its standard operating practices. Any empirical data specifically derived by third parties, or intellectual property or opinions of third parties are expressly attributed when utilized. The factual information provided has been obtained from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. All data, facts, tables or analyses provided by Governmental or other regulatory bodies are deemed to be in the public domain and not otherwise expressly attributed herein. SPP Capital Partners, LLC is a member of FINRA and SIPC. This information represents the opinion of SPP Capital and is not intended to be a forecast of future events, a guarantee of future results or investment advice. It is not intended to provide specific advice or to be construed as an offering of securities or recommendation to invest. To unsubscribe to this , please click here. To request to be added to our distribution list, please click here Secondary High Yield Pricing Source: Piper Jaffray Debt Capital Markets Update SPP Value Inflection Point