Jefferies Maritime Group

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1 Jefferies Maritime Group Maritime Market Update April 10, 2017 IN THIS ISSUE Maritime Update Tanker Market Update Tanker Universe Equity Comparables Tanker FFA Curve Dry Cargo Market Update Drybulk Universe Equity Comparables Drybulk FFA Curve Gas Carrier Market Update Gas Carrier Universe Equity Comparables Shipping MLP Market Update Shipping MLP Universe Equity Comparables Equity Market Conditions U.S. Equity Market Overview U.S. IPO Market Overview Summary of Issuance U.S. Industrials IPO Market Overview U.S. Followon Market Overview Debt Market Update Debt Market Overview Maritime Bonds INVESTMENT BANKING Jefferies LLC Member SIPC

2 Disclosure Important Disclosures This communication is being provided strictly for informational purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security referenced herein. This material has been prepared by Jefferies LLC ( Jefferies ) a U.S.registered brokerdealer, employing appropriate expertise, and in the belief that it is fair and not misleading. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified, therefore, we do not guarantee its accuracy. This is not an offer or solicitation of an offer to buy or sell any security or investment. Any opinion or estimates constitute our best judgment as of this date, and are subject to change without notice. Jefferies and Jefferies International Limited and their affiliates and their respective directors, officers and employees may buy or sell securities mentioned herein as agent or principal for their own account. This report was created by members of the investment banking division of Jefferies, and has not been reviewed by or discussed with, any member of Jefferies research department. This report is not intended to be, and in no way constitutes a research report, as such term is defined in Rule 137 promulgated under the Securities Act of 1933, as amended. Jefferies investment banking department has done, and may continue to do business with, companies included in this report. This report is a marketing communication and is not and should not be construed as investment research. Reproduction without written permission of Jefferies is expressly forbidden. Additional Information This material is approved for distribution in the United Kingdom by Jefferies International Limited, which is authorised and regulated by the Financial Services Authority ("FSA") and is located at Vintners Place, 68 Upper Thames Street, London EC4V 3BJ; telephone +44 (0) ; facsimile +44 (0) While we believe this information and materials upon which this information was based are accurate, except for any obligations under the rules of the FSA, we do not guarantee its accuracy. In the UK, this publication is directed solely at persons who have professional experience in matters relating to investments falling within Articles 19(5) and 49(2)(a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or at persons to whom it can be otherwise lawfully distributed. For Canadian investors, this material is intended for use only by professional or institutional investors. None of the investments or investment services mentioned or described herein is available to other persons or to anyone in Canada who is not a "Designated Institution" as defined by the Securities Act (Ontario). For investors in the Republic of Singapore, this material is intended for use only by accredited, expert or institutional investors as defined by the Securities and Futures Act and is distributed by Jefferies Singapore Limited which is regulated by the Monetary Authority of Singapore. Any matters arising from, or in connection with, this document should be brought to the attention of Jefferies Singapore Limited at 80 Raffles Place #1520, UOB Plaza 2, Singapore , telephone: Recipients of this document in any other jurisdiction should inform themselves about and observe any applicable legal requirements in relation to the receipt of this report. All logos, trademarks and service marks appearing herein are property of Jefferies. Member SIPC 01/2014 Jefferies LLC i

3 Table of Contents Maritime Update 1 Equity Market Conditions 12 Debt Market Update 16 ii

4 Maritime Update 1

5 Tanker Market Update Week of April 10, 2017 Last Twelve Months Indexed Performance Indexed to % 120% 110% 100% 90% 80% 70% 60% 50% 40% 4/7/16 6/6/16 8/6/16 10/6/16 12/6/16 2/5/17 4/6/17 Tanker Companies S&P 500 Stock Price % of 52 LTM 4/7/2017 Week High Change Weekly Change (%) Ardmore Shipping $ % 7.3% DHT Holdings % (18.6%) Euronav % (12.1%) Frontline % (10.0%) Gener8 Maritime % (14.7%) International Seaways % NA Navios Maritime Acquisition % 6.5% Nordic American Tankers % (42.5%) Scorpio Tankers % (22.9%) Ship Finance International % 2.2% Teekay Corporation % 17.3% Teekay Tankers % (40.7%) Tsakos Energy Navigation % (14.6%) Mean 70.8% (11.9%) (1.3%) (0.7%) (1.6%) (1.4%) (4.1%) (1.6%) (2.9%) (6.8%) (2.0%) 3.7% 0.7% 2.1% 0.2% Recent News (April 1, 2017 April 7, 2017) Recent Sector News West Texas Intermediate crude prices increased 3.24% on the week from $50.60 per barrel to $52.24 per barrel Brent Crude prices increased 4.56% on the week from $52.83 per barrel to $55.24 per barrel Regulatory Filings 4/3: Teekay Corporation declared dividend 4/4: Euronav published its Annual Report /5: Tsakos Energy Navigation announced closing of Public Offering of Series E Fixedto Floating Rate Cumulative Redeemable Perpetual Preferred Shares, including full exercise of Underwriters option to purchase additional shares 4/6: Navios Maritime Acquisition Corporation announced availability of Its Form 20F for the Year Ended December 31, 2016 Source: Bloomberg, Capital IQ and SEC filings. 2

6 Tanker Universe Equity Comparables ($Millions, except per share data) Stock Total TEV / EBITDA P / E Dist Cash Yield Dividend Yield Price / TEV / Price % 52Week Market Enterprise Adjusted Adjusted 2017E 2018E 2017E 2018E 2017E 2018E 2017E 2018E 4/7/2017 High Cap Value NAV Asset Value Ardmore Shipping Corporation $ % $ $ x 8.8x NM 13.4x 15.4% 24.2% 1.1% 5.1% 102.3% 101.0% DHT Holdings % , x 5.8x 22.8x 12.0x 21.6% 23.8% 4.5% 4.8% 101.1% 100.4% Euronav % 1, , x 7.0x NM 22.5x 22.1% 26.2% 4.4% 5.0% 99.7% 99.8% Frontline % 1, , x 5.7x NM 17.1x 14.2% 21.5% 3.6% 7.5% 116.4% 109.1% International Seaways (1) % x 5.4x 21.9x 12.5x 14.2% 23.6% 0.0% 0.0% 76.5% 84.4% Gener8 Maritime % , x 8.5x NM 9.0x 30.1% 43.1% 0.0% 0.0% 91.0% 97.8% Navios Maritime Acquisition % , x 9.6x NM 9.2x 33.5% 21.5% 12.1% 12.1% 135.7% 105.3% Nordic American Tankers % , x 7.3x NM 17.5x 10.2% 19.0% 10.0% 14.9% 295.6% 182.4% Scorpio Tankers % , x 7.8x NM 6.8x 23.4% 41.0% 2.6% 2.3% 129.7% 107.0% Ship Finance International % 1, , x 10.6x 13.4x 12.9x 13.2% 14.5% 12.3% 12.3% NM NM Teekay Corporation % , x 8.2x NM 9.3x 0.0% 0.0% 2.4% 2.4% NM NM Teekay Tankers % , x 6.8x 23.9x 7.1x 31.4% 45.0% 5.3% 6.6% 127.9% 106.2% Tsakos Energy Navigation % , x 7.3x 8.6x 5.0x 47.0% 56.7% 4.4% 4.6% 94.8% 99.0% Mean 9.4x 7.6x 18.1x 11.9x 21.3% 27.7% 4.8% 6.0% 124.6% 108.4% Source: Forward calendar year estimates per Bloomberg (1) Asset value includes joint venture of $200 million. Represents ~6.75x estimated cash flow from joint venture per Company filings. 3

7 Tanker FFA Curve (April 7, 2017) VLCC TD3 FFA ($/Day) Aframax TD7 FFA ($/Day) $30,000 $9,000 $25,000 $25,606 $6,000 $5,487 $5,048 $20,000 $17,792 $15,000 $3,000 $10,000 Q Q Panamax LR1 TC5 FFA ($/Day) ` Handymax MR TC2 FFA ($/Day) $12,000 $12,000 $10,000 $8,000 $8,974 $7,473 $9,000 $7,493 $7,963 $6,000 $6,000 $4,000 Q $3,000 Q Source: Bloomberg. 4

8 Drybulk Market Update Week of April 10, 2017 Indexed to % 200% 150% 100% Last Twelve Months Indexed Performance Drybulk Stock Price % of 52 LTM 4/7/2017 Week High Change Weekly Change (%) Diana Shipping $ % 134.9% DryShips % (63.0%) Eagle Bulk % (43.7%) Euroseas % (25.7%) Genco Shipping & Trading % 157.1% Globus Maritime % 205.4% Golden Ocean Group % 162.6% Navios Maritime Holdings % 56.5% Safe Bulkers % 208.1% Scorpio Bulkers % 189.6% Seanergy Maritime % (70.8%) Star Bulk Carriers % 220.6% Mean 60.8% 94.3% (57.6%) (26.5%) (7.0%) (6.4%) 15.2% 13.7% 3.7% 14.1% 5.4% 6.7% 7.0% 28.1% 50% 4/6/16 6/6/16 8/6/16 10/6/16 12/6/16 2/5/17 4/7/17 Drybulk Companies Container Companies S&P 500 Container Costamare % (31.6%) Danaos % (53.2%) Diana Containerships % (84.0%) Global Ship Lease % 23.9% Seaspan % (62.1%) Mean 32.3% (41.4%) (40.8%) (6.5%) (5.4%) (6.8%) 0.0% Recent Sector News No News Recent News (April 1, 2017 April 7, 2017) Regulatory Filings 4/3: Costamare declared a dividend on its preferred and common stock 4/3: Seanergy Maritime released Q results 4/3: DryShips entered into a $226.4 million common stock purchase agreement and announced the acquisition of 6 vessels 4/4: Seanergy Maritime announced an agreement to acquire a modern Capesize vessel 4/5: Golden Ocean filed its 20F 4/6: DryShips announced a reverse stock split to occur on April 11 th 4/6: Safe Bulkers announced the settlement of its Series B Exchange Offer 4/7: Euroseas filed its 20F 4/7: Navios Maritime Holdings announced the inauguration of its iron ore transshipment and storage facility Source: Bloomberg, Capital IQ and SEC filings. 5

9 Drybulk Universe Equity Comparables ($Millions, except per share data) xc Stock Total TEV / EBITDA P / E Dist Cash Yield Dividend Yield Price / TEV / Drybulk Price % 52Week Market Enterprise Adjusted Adjusted 2017E 2018E 2017E 2018E 2017E 2018E 2017E 2018E 4/7/2017 High Cap Value NAV Asset Value Diana Shipping $ % $ $ 1,096.1 NM 16.2x NM NM 0.4% 7.6% 0.0% 0.0% 152.8% 119.0% DryShips % (163.9) NM NM NM NM 0.0% 0.0% 0.0% 0.0% NM NM Eagle Bulk % x 8.4x NM NM 1.6% 7.8% 0.0% 0.0% 91.1% 92.9% Euroseas % x 7.9x NM NM 0.0% 0.0% 0.0% 0.0% 64.2% 93.0% Genco Shipping & Trading % x 10.5x NM NM NM NM 0.0% 0.0% 111.9% 106.0% Globus Maritime % NM NM NM NM 47.1% NM 0.0% 0.0% NM NM Golden Ocean % 1, ,289.9 NM 14.3x NM NM 4.1% 12.6% 0.0% 1.1% 137.8% 116.1% Navios Maritime Holdings % , x 10.4x NM NM 11.3% 55.7% 0.0% 0.0% NM 153.1% Safe Bulkers % x 11.1x NM NM 7.4% 19.9% 0.2% 3.2% NM 126.6% Scorpio Bulkers % ,221.4 NA 25.5x NM NM NM 2.0% 0.0% 1.0% 109.8% 105.7% Seanergy Maritime % NM NM NM NM 0.0% 0.0% 0.0% 0.0% 67.8% 93.4% Star Bulk Carriers % , x 9.5x NM NM 8.7% 13.4% 0.0% 8.5% 120.5% 109.9% Mean 19.0x 12.6x NM NM 8.0% 11.9% 0.0% 1.2% 107.0% 111.6% Container Costamare % , x 8.2x 7.2x 7.9x 37.6% 37.2% 6.4% 6.4% NM NM Danaos % , x 8.8x 2.2x 2.0x 107.4% 110.9% 0.0% 0.0% NM NM Diana Containerships % NA NA NM NM 0.0% 0.0% 0.0% 0.0% NM NM Global Ship Lease % NM 5.1x NM NM 0.0% 0.0% 0.0% 0.0% NM NM Seaspan % , x 8.0x 9.3x 6.0x 45.1% 54.3% 7.7% 7.7% NM NM Mean 8.2x 7.5x 6.2x 5.3x 38.0% 40.5% 2.8% 2.8% NM NM Source: Forward calendar year estimates per Bloomberg. 6

10 Drybulk FFA Curve (April 7, 2017) Capesize 5TC FFA ($/Day) Capesize C7 FFA ($/Ton) $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $16,450 $14,875 $14,950 Q $8.25 $8.20 $8.15 $8.10 $8.05 $8.00 $7.95 $7.90 $8.20 $8.00 Q Panamax TC FFA ($/Day) Supramax FFA ($/Day) $12,000 $10,000 $11,725 $9,950 $10,025 $12,000 $10,000 $9,900 $9,575 $9,675 $8,000 $8,000 $6,000 $6,000 $4,000 $4,000 $2,000 $2,000 Q Q Source: Bloomberg, SSY. 7

11 Gas Carrier Market Update Week of April 10, 2017 Indexed to % 125% Last Twelve Months Indexed Performance xc Stock Price % of 52 LTM 4/7/2017 Week High Change Weekly Change (%) Dorian LPG $ % 10.4% GasLog % 50.6% Golar LNG % 59.1% Navigator Holdings % (7.3%) Stealthgas % 4.9% (5.9%) (4.6%) (1.8%) (3.3%) 1.1% 100% Mean 82.5% 23.5% 75% 50% 25% 4/6/16 6/6/16 8/6/16 10/6/16 12/6/16 2/5/17 4/7/17 Gas Comps S&P 500 Recent News (April 1, 2017 April 7, 2017) Recent Sector News Henry Hub gas prices increased 3.0% on the week from $3.10 per MMbtu to $3.19 North American spot LNG Propane (Mt. Belvieu) prices increased 6.4% on the week from $6.66 per MMBtu to $7.08 North American spot LNG Butane (Mt. Belvieu) prices increased 5.7% on the week from $7.21 per MMBtu to $7.62 North American spot LNG Ethane (Mt. Belvieu) prices increased 4.2% on the week from $2.62 per MMBtu to $2.73 Total U.S. working gas in underground storage increased 0.1% on the week from 2,049 billion cubic feet to 2,051 Regulatory Filings 4/3: Golar LNG paid Q dividends Source: Bloomberg, Capital IQ, U.S. Energy Information Administration and SEC filings. 8

12 Gas Carrier Universe Equity Comparables ($Millions, except per share data) Stock Total TEV / EBITDA P / E Dist Cash Yield Dividend Yield Price % 52Week Market Enterprise 4/7/2017 High Cap Value 2017E 2018E 2017E 2018E 2017E 2018E 2017E 2018E Dorian LPG $ % $ $ 1, x 10.7x NM 18.3x 10.5% 18.5% 0.0% 0.0% GasLog % 1, , x 10.8x NM 18.5x 17.7% 22.3% 3.9% 3.9% Golar LNG % 2, ,139.6 NM 15.0x NM NM 0.9% 7.8% 0.7% 0.7% Navigator Holdings % , x 8.7x 16.6x 13.4x 17.2% 20.5% 0.0% 0.0% Stealthgas % x 7.4x NM NM 0.0% 0.0% NA NA Mean 12.2x 10.5x 16.6x 16.7x 9.3% 13.8% 1.2% 1.2% Source: Forward calendar year estimates per Bloomberg. 9

13 Shipping MLP Market Update Week of April 10, 2017 hgk Last Twelve Months Indexed Performance Indexed to % 140% 130% 120% 110% 100% 90% 80% 70% 60% 50% 40% 30% 20% 4/7/16 6/6/16 8/6/16 10/6/16 12/6/16 2/5/17 4/6/17 Stock Price % of 52 LTM 4/7/2017 Week High Change Weekly Change (%) Capital Product Partners $ % 6.5% Dynagas LNG Partners LP % 56.1% GasLog Partners % 44.0% Golar LNG Partners % 52.9% Höegh LNG Partners LP % 13.8% KNOT Offshore Partners % 37.9% Navios Maritime Midstream % 13.3% Navios Maritime Partners % 61.7% Teekay LNG Partners % 47.2% Teekay Offshore Partners % 8.3% Mean 87.0% 34.2% (3.1%) (2.7%) (3.3%) (1.2%) (1.7%) (5.4%) 1.0% 0.0% 3.9% 8.5% S&P 500 MLP Companies Recent News (April 1, 2017 April 7, 2017) Recent Sector News No News Regulatory Filings 4/3: Teekay LNG Partners declared distribution on Common Units 4/3: Teekay LNG Partners declared distribution on Series A Preferred Units 4/3: Teekay Offshore Partners declared distribution on Common Units 4/3: Teekay Offshore Partners declared distributions on Series A, B, C1 and D Preferred Units 4/6: Navios Maritime Partners announced acquisition of two Panamax vessels Source: Bloomberg, Capital IQ and SEC filings. 10

14 Shipping MLP Universe Equity Comparables ($Millions, except per share data) Stock Total TEV / EBITDA P / E Dist Cash Yield Dividend Yield Price % 52Week Market Enterprise 4/7/2017 High Cap Value 2017E 2018E 2017E 2018E 2017E 2018E 2017E 2018E Capital Product Partners $ % $ $ 1, x 6.8x 11.2x 10.1x 23.5% 25.4% 9.3% 9.7% Dynagas LNG Partners LP % , x 11.0x 14.2x 14.2x 12.0% 12.7% 9.7% 10.0% GasLog Partners % , x 9.4x 9.8x 10.0x 18.4% 18.2% 8.5% 8.9% Golar LNG Partners % 1, , x 8.3x 9.1x 10.4x 17.5% 15.6% 10.5% 10.5% Höegh LNG Partners LP % x 6.5x 11.2x 9.5x 13.2% 15.4% 8.8% 9.2% KNOT Offshore Partners % , x 7.8x 11.6x 11.1x 18.7% 20.5% 9.2% 9.6% Navios Martime Partners % x 6.3x NM NM NM NM NM NM Navios Maritime Midstream % x 5.6x 9.7x 11.0x 19.8% 20.0% 15.0% 15.4% Teekay LNG Partners % 1, , x 8.6x 9.7x 7.8x 19.6% 24.0% 3.2% 5.6% Teekay Offshore Partners % , x 6.2x 7.3x 4.9x 51.6% 64.4% 7.9% 8.0% Mean 8.4x 7.7x 10.4x 9.9x 21.6% 24.0% 9.1% 9.7% Source: Forward calendar year estimates per Bloomberg. 11

15 Equity Market Conditions 12

16 VIX Index Value U.S. Equity Market Overview Key Points U.S. equity markets have traded at new or near alltime highs post election fueled by large inflows into equity funds and low volatility Investors are focused on repositioning sector weightings towards Industrials and Materials stocks with a focus on: Size and pace of incremental infrastructure spend Impact of deficit spending on interest rates Details on fiscal policy changes at the individual and corporate level Impact on global trade and labor markets U.S. Sector Fund Flows continue to favour the industrials sector, comprising $15.7bn since election Sector Performance (1) S&P Sectors Since 2016 Materials Technology Financials Industrials Utilities U.S. Fund Flows LTM Cumulative Fund Flows ($bn) $100 $50 ($50) Energy Cons. Disc Telecom Cons. Stpls Real Estate Healthcare $0 6% 7% 11% 10% 15% 14% 20% 25% 24% U.S. Fund Flows 2017: $ % Materials & Industrials Consistently Remain in the Best Performing Sectors LTM 27% 0% 10% 20% 30% ($100) M A M J J A S O N D J F M A S&P Sectors Since Election Financials Technology Materials Industrials Cons. Disc Healthcare Telecom Real Estate Utilities Cons. Stpls Energy Volatility Measurements % 4% 5% 6% 6% 9% 11% 13% 12% 12% 18% Trump Bump Favors Industrials & Materials 0% 5% 10% 15% 20% 25% Volatility Remains Low VIX: 12.8 Sector Fund Flows Since Election ($bn) $ $20 $19.2 $17.1 $ $10.9 $10 $9.0 $ $0 FIG TMT Industrials Consumer Energy Healthcare 10.0 M A M J J A S O N D J F M A Source: CapIQ. Bloomberg, EPFR. (1) S&P 1500 sectors 13

17 # of IPOs % Index Performance U.S. IPO Market Overview Key Points IPO market remains constructive and is wide open Witnessing an increase in issuance in sectors such as financials, energy and industrials that have been underrepresented over the past few years given a lot of the momentum in these spaces posttrump election 26 IPOs have priced raising $12.3 billion in proceeds ~73% priced within or above the filing range Stocks have traded well with an average offertocurrent of 10.6% IPO Pricing Environment By Month (1) China Meltdown IPO Issuance, Pricing and Aftermarket Performance (1) Equity Selloff Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Below Within Above Average Number of Volume Aftermarket Performance Month VIX (%) Offerings ($bn) Pricing vs. Filing Range T+1 T+30 Current April % 25% 50% 23.0% 21.6% March % 38% 38% 15.4% 32.5% 15.0% February % 60% 9.6% 3.1% 1.0% January % 56% 22% 3.8% 19.5% 10.6% December % 4.5% 11.9% 19.2% November % 0% 2.0% 11.2% 13.0% October % 44% 28% 9.2% 11.6% 20.4% September % 40% 47% 34.0% 28.2% 28.7% August % 83% 3.9% 18.0% 3.9% July % 50% 20% 16.5% 31.4% 41.8% June % 43% 14% 24.8% 22.4% 12.2% May % 62% 7.4% 16.0% 86.1% April % 71% 5.7% 7.0% 14.0% $ % 46% 27% 11.9% 13.3% 11.2% $ % 52% 17% 13.5% 19.3% 38.6% Brexit # of IPOs S&P 500 Index Renaissance IPO Index Election Anxiety 2 5 Trump Bump % 10.0% 0.0% (10.0%) (20.0%) (30.0%) (40.0%) Source: Dealogic, Wall Street Research. (1) Excludes transactions less than $20.0 million, reipos and BCC/SPACs. 14

18 Issuance ($bn) U.S. Followon Market Overview Key Points LTM Total: 608 Deals / $166.0bn 2017: 191 Deals / $46.2bn 2016: 524 Deals / $164.9bn The U.S. followon market has accelerated postelection, backed by supportive markets and pentup supply from October / early November Followon Issuance By Month $30 $25 $20 $15 $10 $5 $ $18.2 $17.3 $16.6 $12.3 $12.4 $9.3 $10.2 $11.6 $9.9 $9.6 $2.4 $12.1 $13.3 $14.6 $7.1 $7.1 $5.6 $10.1 $8.3 $3.1 $6.5 $9.3 $1.8 $6.7 $7.3 $3.8 $3.9 $1.6 $2.3 $2.2 $4.9 $5.8 $3.7 $3.5 $ $1.3 $0.2 $0.2 $0.6 $0.9 $ $1.2 $0.4 $0.1 $0.3 $17.0 $19.8 $18.2 $15.2 $4.8 $8.6 $1.9 $12.5 $ Monthly Avg: $13.71bn $17.7 $5.6 $11.6 $1.6 $5.3 $0.4 $0.3 $0.4 $0.7 $0.5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Total During 2016, issuers have favored quick to market transactions with block trades and accelerated book builds minimizing market exposure 2017 sector issuance and use of proceeds have been balanced and diverse, consistent with a constructive market environment The pricing environment has improved post election Average March 2017 filetooffer discounts for primary share issuers: (7.1%) Average March 2017 filetooffer discounts for secondary share sales: (4.5%) Marketed Accelerated Block Followon Issuance Breakdown Issuance By Sector % 13% % 24% 17% Use of Proceeds 9% 25% 24% 19% 12% 12% 10% 15% 9% 0% 20% 40% 60% 80% 100% 21% Marketed Accelerated Blocks Consumer Energy Finance Healthcare Industrials Real Estate TMT % 23% 14% 33% Acquisitions % 13% 27% Secondary CAPEX General FiletoOffer Pricing Environment Primary Share Followon FiletoOffer Discounts Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr (7.3%)(7.1%) (5.6%) (7.5%) (8.1%) (8.1%) (8.3%) (5.5%) (6.9%) (6.6%)(6.1%) (7.0%) (6.9%) (7.5%) (7.1%) (9.1%) Secondary Share Followon FiletoOffer Discounts Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr (3.3%) (4.1%)(4.3%) (4.2%) (4.7%) (6.5%) (3.7%)(3.9%) (4.9%) (4.5%) (5.4%) (5.9%) (3.6%) (4.6%) (4.3%)(4.5%) 0% 20% 40% 60% 80% 100% Source: Dealogic. Excludes transactions less than $20.0 million. 15

19 Debt Market Update 16

20 $Millions $Billions $Millions Debt Market Overview g New Bank Loan Syndications Last Twelve Months High Yield Debt Issuance Last Twelve Weeks $120.0 $100.0 $ $20,000 $18,000 $16,000 $17, $80.0 $60.0 $40.0 $20.0 $75.0 $61.5 $43.6 $46.0 $38.6 $39.7 $33.4 $22.2 $68.1 $68.0 $ Number of Deals $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $8,450 $5,745 $4,000 $10,425 $2,815 $1,755 $5,500 $7,800 $4,185 $7,380 $6, Number of Deals Bank Deals Deals Weekly Issuance Deals High Yield Mutual Fund Flows Last Twelve Weeks $3,000 $2,375 $2,000 $1,000 $413 $442 $158 $726 $736 ($1,000) ($2,000) ($3,000) ($887) ($532) ($240) ($2,100) ($249) ($4,000) ($5,000) ($6,000) ($7,000) ($5,680) Source: Standard & Poor s LCD, Jefferies Leveraged Finance Group. 17

21 Spread YTW Debt Market Overview (Cont d) Bank Loan Secondary Spreads Last Twelve Months L L L High Yield Broad Market Index Last Twelve Months 9.00% 8.00% 7.00% 6.00% 5.00% All BB/B BB B 4.00% 3.00% 4/16 5/16 7/16 9/16 10/16 12/16 2/17 3/17 B BB Market Metrics This Week Last Week One Year Ago 3 Month LIBOR 1.16% 1.15% 0.63% Prime 4.00% 4.00% 3.50% 5 year Treasuries 1.92% 1.92% 1.14% 30 year Treasuries 3.01% 3.01% 2.51% Source: Standard & Poor s LCD, Jefferies Leveraged Finance Group. 18

22 Maritime Bonds Price YTW STW Maturity Ratings Outstanding ($mm) CMA CGM 8.750% Sr Nts due ' % 4.91% 12/15/2018 B3 / CCC % Sr Nts due ' % 7.35% 1/15/2021 B3 / CCC+ 550 Eletson Holdings Inc % Secured due ' % 12.19% 1/15/2022 B2 / B+ $ 300 Global Ship Lease 10% Sr Notes due ' % 9.13% 4/1/2019 / B $ 393 Great Lakes Dredge & Dock 7.375% Sr Sub Nts due ' % 6.67% 2/1/2019 Caa1 / B $ 275 Gulfmark Offshore 6.375% Sr Nts due ' % 0.00% 3/15/2022 Ca / CCC $ 430 Hornbeck Offshore Services 5.875% Sr Nts due ' % 20.26% 4/1/2020 Caa3 / CCC $ 375 5% Sr Nts due ' % 17.55% 3/1/2021 Caa3 / CCC $ 450 Navios Maritime Acquisition 8.125% Sr Nts due ' % 10.10% 11/15/2021 B2 / B+ $ 670 Navios Maritime Holdings 8.125% Sr Nts due ' % 13.88% 2/15/2019 Ca / CCC $ % Sr Sec Nts due ' % 9.47% 1/15/2022 Caa2 / B $ 650 Navios South American Logistics 7.25% Sr Nts due ' % 5.87% 5/1/2022 B3 / B $ 375 Overseas Shipholding Group 8.125% Sr Nts due ' % 2.21% 3/30/2018 Caa1 / B $ 119 Royal Caribbean Lines 5.25% Sr Nts due ' % 1.63% 11/15/2022 Ba1 / BB+ $ 650 Stena International 5.75% Sr Sec Nts due ' % 5.51% 3/1/2024 Ba3 / BB $ 350 Teekay Corporation 8.5% Sr Nts due ' % 7.29% 1/15/2020 Caa1 / B+ $ 593 Ultrapetrol Limited 8.875% Sr Sec due ' % 0.00% 6/15/2021 Caa3 / NR $ Source: CapitalIQ and Bloomberg. 19

23 Maritime Retail / Preferred Securities Amount Yield at Strip Yield Strip Yield Delta Since Dirty Price Issue Date Issuer ($M) Offer 7Apr 7Apr Offer 7Apr % of Par Bonds 05/20/15 DIANA SHIPPING INC % 8.660% 8.660% 0.160% % 09/11/14 SCORPIO BULKERS INC % 7.668% 7.668% 0.168% % 10/28/14 SCORPIO TANKERS INC % 7.432% 7.432% 0.068% % 05/07/14 SCORPIO TANKERS INC % 7.098% 7.098% 0.348% % 03/27/14 SEASPAN CORP % 6.433% 6.433% 0.058% % 10/30/14 STAR BULK CARRIERS CORP % 8.133% 8.133% 0.133% % Preferred 07/26/13 BOX SHIPS INC % % % 3.434% $ % 05/06/15 COSTAMARE INC % 9.252% 9.252% 0.502% $ % 01/13/14 COSTAMARE INC % 9.109% 9.109% 0.609% $ % 07/30/13 COSTAMARE INC % 8.437% 8.437% 0.812% $ % 02/10/14 DIANA SHIPPING INC % % % 1.185% $ % 07/13/15 DYNAGAS LNG PARTNERS LP % 8.826% 8.826% 0.174% $ % 03/30/15 GASLOG LTD % 8.556% 8.556% 0.194% $ % 08/13/14 GLOBAL SHIP LEASE INC % % % 1.949% $ % 06/30/14 NAVIOS MARITIME HOLDINGS % % % 3.952% $ % 01/21/14 NAVIOS MARITIME HOLDINGS % % % 3.848% $ % 06/23/14 SAFE BULKERS INC % 9.964% 9.964% 1.964% $ % 04/30/14 SAFE BULKERS INC % % % 2.256% $ % 08/04/16 SEASPAN CORP % 9.424% 9.424% 1.549% $ % 06/09/16 SEASPAN CORP % 9.491% 9.491% 1.291% $ % 02/06/14 SEASPAN CORP % 9.389% 9.389% 1.139% $ % 12/06/12 SEASPAN CORPORATION % 9.275% 9.275% 1.325% $ % 09/28/16 TEEKAY LNG PARTNERS % 8.975% 8.975% 0.025% $ % 04/13/15 TEEKAY OFFSHORE PARTNERS % 9.516% 9.516% 1.016% $ % 04/23/13 TEEKAY OFFSHORE PARTNERS % 8.936% 8.936% 1.686% $ % 04/22/15 TSAKOS ENERGY NAVIGATION % 8.890% 8.890% 0.140% $ % 09/26/13 TSAKOS ENERGY NAVIGATION % 8.732% 8.732% 0.143% $ % 05/02/13 TSAKOS ENERGY NAVIGATION % 7.937% 7.937% 0.063% $ % Source: Bloomberg. 20