Jefferies Maritime Group

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1 Jefferies Maritime Group Maritime Market Update April 28, 2014 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 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 10 Debt Market Update 15 ii

4 Maritime Update 1

5 Tanker Market Update Week of April 21, 2014 Last Twelve Months Indexed Performance Indexed to % 130% 120% 110% 100% xc Stock Price % of 52 LTM 4/25/2014 Week High Change Weekly Change (%) Ardmore Shipping $ % NA Capital Product Partners % 20.7% DHT Holdings % 85.0% Frontline % 82.1% Navios Maritime Acquisition % 12.1% Nordic American Tankers % (7.8%) Scorpio Tankers % 7.1% Ship Finance International % 8.7% Teekay Corporation % 62.0% Teekay Offshore Partners % 10.0% Teekay Tankers % 41.1% TORM % 103.3% Tsakos Energy Navigation % 96.7% Mean 78.3% 43.4% (6.2%) (1.0%) (1.8%) (1.2%) (2.9%) (4.8%) (5.4%) 0.6% 1.7% 0.6% 0.7% 2.4% 4.8% 90% 4/25/13 6/24/13 8/24/13 10/24/13 12/24/13 2/23/14 4/25/14 Tanker Companies S&P 500 Recent News (April 20, 2014 April 26, 2014) Recent Sector News West Texas Intermediate crude prices decreased 3.5% on the week from $ per barrel to $ Brent crude prices increased 0.0% on the week from $ per barrel to $ WTI rose to a sixweek high, bolstered by positive employment news while Brent fell as talks on the crisis in Ukraine ended with an accord to take steps to end the conflict A tanker began loading crude at Libya s port of Hariga for the first time since July Iran started a shuttle shipping line between southern port of Bandar Abbas and China s Dalian, Lianyungang ports Regulatory Filings 4/24: Tsakos Energy Navigation priced an offering of 11,000,000 common shares at $7.30 per share Source: Bloomberg, Capital IQ and SEC filings. 2

6 Tanker Universe Equity Comparables ($Millions, except per share data) xc Stock Total TEV / EBITDA P / E Dist Cash Yield Dividend Yield Price / TEV / Price % 52Week Market Enterprise Adjusted Adjusted 2014E 2015E 2014E 2015E 2014E 2015E 2014E 2015E 4/25/2014 High Cap Value NAV Asset Value Ardmore Shipping Corporation $ % $ $ x 5.7x NM 12.3x 7.0% 19.2% 3.0% 3.0% 94.6% 94.6% Capital Product Partners % , x 12.0x NM 20.7x 10.9% 11.3% 8.9% 9.1% NM 147.3% DHT Holdings % x 9.7x NM NM 4.2% 10.1% 1.0% 1.2% 104.4% 104.6% Frontline % , x 10.6x NM NM 2.3% 11.6% 0.0% 0.1% NM NM Navios Maritime Acquisition % , x 7.9x NM 8.3x 17.5% 11.6% 5.6% 5.6% 97.0% 99.0% Nordic American Tankers % x 10.3x NM NM 6.4% 10.4% 9.0% 9.4% 146.9% 139.9% Scorpio Tankers % 1, , x 5.3x NM 8.5x 7.3% 17.9% 3.9% 4.7% 98.2% 98.3% Ship Finance International % 1, , x 8.3x 20.2x 15.5x 22.1% 22.3% 9.1% 9.1% NM NM Teekay Corporation % 4, , x 11.3x NM NM 7.2% 9.4% 2.3% 3.4% NM NM Teekay Offshore Partners % 2, , x 8.6x 20.9x 19.6x 12.1% 12.5% 6.5% 6.8% NM NM Teekay Tankers % , x 9.1x 14.3x 7.0x 21.4% 29.6% 3.6% 3.4% NM 120.0% TORM % , x 8.0x NM NM NA NA NA NA NM 159.5% Tsakos Energy Navigation % , x 7.1x 8.4x 5.5x 27.0% 34.4% 2.8% 2.8% 91.1% 97.2% Mean 12.2x 8.8x 16.0x 12.2x 12.1% 16.7% 4.6% 4.9% 105.4% 117.8% Source: Forward calendar year estimates per Bloomberg. 3

7 Tanker FFA Curve (April 25, 2014) VLCC TD3 FFA ($/Day) Suezmax TD5 FFA ($/Day) $25,000 $20,000 $20,929 $23,713 $18,000 $15,000 $15,272 $14,875 $16,134 $15,000 $10,000 $10,073 $12,000 $9,000 $6,000 $5,000 $3,000 Q Q Panamax LR1 TC5 FFA ($/Day) Handymax MR TC2 FFA ($/Day) $18,000 $15,000 $12,000 $11,803 $14,533 $15,741 $8,000 $6,000 $6,202 $7,000 $9,000 $4,000 $3,088 $6,000 $3,000 $2,000 Q Q Source: Bloomberg. 4

8 Dry Cargo Market Update Week of April 21, 2014 Last Twelve Months Indexed Performance Indexed to % 180% 170% 160% 150% 140% 130% 120% 110% 100% 90% 4/25/13 6/24/13 8/24/13 10/24/13 12/24/13 2/23/14 4/25/14 Drybulk Companies Container Companies S&P 500 Drybulk Stock Price % of 52 LTM 4/25/2014 Week High Change Weekly Change (%) Baltic Trading $ % 90.1% Diana Shipping % 26.6% DryShips % 69.0% Euroseas % 14.2% FreeSeas % (75.3%) Globus Maritime % (65.4%) Goldenport % (43.5%) Hellenic Carriers % (38.1%) Knightsbridge Tankers % 89.9% Navios Maritime Holdings % 88.2% Navios Maritime Partners % 23.9% Paragon Shipping % 49.0% Safe Bulkers % 67.6% Scorpio Bulk % NA Seanergy Maritime % (0.6%) Star Bulk Carriers % 97.5% Ultrapetrol % 17.7% Mean 72.8% 25.7% Container Box Ships $ % (86.0%) Costamare % 75.8% Danaos % 39.0% Diana Containerships % (74.4%) Global Ship Lease % (12.1%) Seaspan % 3.3% Mean 68.5% (9.1%) (1.1%) (1.6%) (1.6%) (3.9%) (2.9%) (3.0%) (2.5%) (6.1%) (7.0%) (9.3%) (3.7%) (2.1%) (11.5%) (6.1%) (1.5%) (2.6%) 0.0% 1.5% 0.0% 0.1% 3.7% 6.6% 10.5% Recent News (April 20, 2014 April 26, 2014) Recent Sector News Drybulk vessel prices rose 33% on demand for new capesize ships Shipping banks need to refinance about 35 billion in loans in the next two years Iron ore prices are set to slump in the second half as more steel companies in China will probably go bankrupt, hurting demand by the largest user just as supply expands South Korea s government confirmed 18 dead and 278 missing after a ferry carrying hundreds of high school students sank en route to the resort island of Jeju Rio Tinto said firstquarter iron ore production rose 8 percent to a record 52.3 million metric tons, swelling global supply that s forecast to head into surplus this year China iron ore import demand seen aided as steel stockpiles drop Japan may increase financial aid for Panama Canal construction on condition that expansion work is expedited Regulatory Filings 4/24: Knightsbridge Tankers and Frontline 2012 have agreed to combine Frontline 2012's remaining fleet of 25 newbuilding vessels with Knightsbridge. Accordingly, Knightsbridge has agreed to issue 62.0 million shares to Frontline /22: Navios Maritime Holdings completed the sale of $375 million of 7.250% senior notes due /21: Genco Shipping & Trading Limited announced that it and certain of its subsidiaries have filed voluntary Chapter 11 petitions to implement a prepackaged financial restructuring that is expected to reduce debt by approximately $1.2 billion 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 / Price % 52Week Market Enterprise Adjusted Adjusted 2014E 2015E 2014E 2015E 2014E 2015E 2014E 2015E 4/25/2014 High Cap Value NAV Asset Value Drybulk Baltic Trading $ % $ $ x 7.0x NM 10.2x 8.8% 14.9% 3.3% 6.7% 93.3% 94.9% Diana Shipping % , x 9.2x NM 21.9x 5.1% 12.5% 0.0% 0.0% 87.4% 89.3% DryShips % 1, , x 6.9x 14.4x 5.7x 51.6% 68.9% 0.0% NA 102.0% 100.3% Euroseas % x 12.7x NM NM NA NA 10.7% 6.6% 76.6% 81.1% FreeSeas % NA NA NM NM NA NA NA NA NM 157.0% Globus Maritime % NA NA 6.1x NM 40.1% NA NA NA 51.3% 77.7% Goldenport % x 8.0x NM 18.6x NA NA NA NA 50.7% 79.3% Hellenic Carriers % x 7.2x NM NM NM 44.5% NA NA 59.2% 82.4% Knightsbridge Tankers % x 2.5x NM 9.2x 5.6% 13.2% 5.3% 5.3% 145.6% 148.8% Navios Maritime Holdings % , x 8.0x NM 16.9x 12.7% 22.7% 2.9% 2.9% 141.2% 112.3% Navios Maritime Partners % 1, , x 11.3x NM 21.4x 10.4% 10.9% 9.6% 9.7% 177.1% 152.2% Paragon Shipping % x 4.7x NM 6.7x 15.2% 32.4% NA NA 69.2% 80.6% Safe Bulkers % , x 7.4x 12.4x 7.3x 14.5% 20.0% 2.9% 5.0% 109.2% 105.1% Scorpio Bulkers % 1, NA 7.2x NM NM NM 3.7% NA NA 92.1% 84.2% Seanergy Maritime % NA NA NM NM NA NA 0.0% 0.0% NM NM Star Bulk Carriers % x 7.8x 19.4x 9.9x 10.8% 14.6% NA NA 79.6% 86.1% Ultrapetrol % x 6.0x 9.1x 7.2x 24.8% 26.9% 0.0% 0.0% NM NM Mean 11.1x 7.6x 12.3x 12.3x 18.1% 23.8% 3.5% 4.0% 95.3% 102.1% Container Box Ships $ % $ 41.0 $ x 8.2x 13.8x NM 32.1% 22.0% 0.0% 0.0% NM NM Costamare % 1, , x 10.0x 13.5x 11.8x 17.1% 18.2% 5.2% 5.3% NM NM Danaos % , x 9.3x 10.4x 5.4x 31.1% 37.1% 0.0% 0.0% NM NM Diana Containerships % x 11.5x NM NM 12.1% 7.4% 14.2% 14.1% NM NM Global Ship Lease % x 7.5x NM NM 20.5% 19.7% 0.0% 0.0% NM NM Seaspan % 2, , x 9.9x 20.8x 15.6x 14.7% 16.9% 6.2% 6.8% NM NM Mean 9.3x 9.4x 14.6x 10.9x 21.3% 20.2% 4.3% 4.4% NM NM Source: Forward calendar year estimates per Bloomberg. 6

10 Drybulk FFA Curve (April 25, 2014) Capesize 4TC FFA ($/Day) Capesize C7 FFA ($/Ton) $24,000 $23,375 $23,200 $14.00 $13.30 $21,000 $20,425 $13.00 $12.42 $12.30 $12.00 $18,000 $11.00 $15,000 Remaining $10.00 Remaining Panamax 4TC FFA ($/Day) Supramax 5TC FFA ($/Day) $16,000 $12,850 $12,550 $15,000 $12,363 $12,350 $12,225 $12,000 $11,388 $10,000 $8,000 $5,000 $4,000 Remaining Remaining Source: Bloomberg. 7

11 Gas Carrier Market Update Week of April 21, 2014 Indexed to % 130% Last Twelve Months Indexed Performance xc Stock Price % of 52 LTM 4/25/2014 Week High Change Weekly Change (%) Dynagas LNG Partners LP $ % NA GasLog % 119.7% Golar LNG % 30.7% Golar LNG Partners % (6.0%) Navigator Holdings % 86.7% Stealthgas % 11.2% Teekay LNG Partners % 2.1% (0.4%) (3.7%) (6.1%) (1.2%) (3.5%) 1.9% 12.0% 120% Mean 90.7% 40.7% 110% 100% 90% 4/25/13 6/16/13 8/7/13 9/28/13 11/19/13 1/10/14 3/3/14 4/25/14 Gas Comps S&P 500 Recent News (April 20, 2014 April 26, 2014) Recent Sector News Henry Hub gas prices increased 3.0% on the week from $4.57 per MMbtu to $4.70 North American spot LPG propane (Mt. Belvieu) prices decreased 1.7% on the week from $12.31 per MMBtu to $12.11 North American spot LPG Butane (Mt. Belvieu) prices decreased 1.7% on the week from $13.62 per MMBtu to $13.39 North American spot LPG Ethane (Mt. Belvieu) prices decreased 1.7% on the week from $3.28 per MMBtu to $3.22 Total U.S. working gas in underground storage increased 5.8% on the week from 850 billion cubic feet to 899 Regulatory Filings 4/24: Dynagas LNG Partners agreed to purchase a 2013built iceclass LNG carrier for $235 million 4/23: Navigator Holdings exercised its option to build three 35,000 cubic meter ethylene/ethane capable semirefrigerated liquefied gas carriers, in addition to the one vessel of the same size already under construction. The three additional vessels will be built at Jiangnan Shipyard in China for $78.4 million each Source: Bloomberg, Capital IQ, U.S. Energy Information Administration and SEC filings. 8

12 Gas Carrier Universe Equity Comparables ($Millions, except per share data) xc Stock Total TEV / EBITDA P / E Dist Cash Yield Dividend Yield Price % 52Week Market Enterprise 4/25/2014 High Cap Value 2014E 2015E 2014E 2015E 2014E 2015E 2014E 2015E Dynagas LNG Partners LP $ % $ $ x 4.7x 12.8x 7.8x 8.0% NA 7.0% 8.4% GasLog % 1, , x 7.0x 16.4x 11.5x 10.3% 12.9% 1.9% 1.7% Golar LNG % 3, , x 17.7x NM NM 2.3% 5.7% 4.2% 4.2% Golar LNG Partners % 1, , x 8.4x 12.3x 11.7x 14.0% 12.5% 7.1% 7.5% Navigator Holdings % 1, , x 11.4x 13.5x 11.3x 11.3% 14.2% NA NA Stealthgas % x 5.6x 8.4x 6.8x 22.5% 27.3% NA NA Teekay LNG Partners % 2, , x 12.8x 17.0x 17.2x 8.7% 9.0% 6.6% 6.8% Mean 15.0x 9.6x 13.4x 11.1x 11.0% 13.6% 5.4% 5.7% Source: Forward calendar year estimates per Bloomberg. 9

13 Equity Market Conditions 10

14 Mutual Fund Flows Equity ex ETF ($bn) OffertoCurrent U.S. Equity Market Overview Recent Profit Taking & Repositioning of Portfolios After Substantial Gains 60% 50% 40% 30% 20% 10% Nikkei 225: +34.9% Russell 2000: +34.0% S&P 500: +30.8% Dow Jones: +25.2% EuroSTOXX: +23.2% Street Predicting Modest Upside To Stocks In 2014 (1) 40% 30% 20% 10% 0% (10%) (20%) 7% (2%) 34% 20% +1, % 31% 27% 20% (10%) (13%) 26% 9% 3% 14% 4% 23% 30% 13% 13% (0%) 6% 0% Dec Jan Feb Mar Apr May Jun 10% Jul Aug Sep Oct Nov Dec Jan Feb Mar Hang Seng: 0.5% MSCI EM: (4.4)% (30%) (40%) (23%) % (38%) % 20% Inflows Into Equities Continues (2) $50 $40 $37.8 $30 $22.7 $20 $10 $0 ($10) ($20) ($11.4) ($30) ($40) ($50) ($60) ($51.9) Market Volatility Remains Low 60.0 Peak VIX: 48.0% Current VIX: 13.4% /11 06/11 11/11 04/12 09/12 02/13 07/13 12/13 VIX Index IPOs Are Producing Outsized Returns IPOs FOs LTM Last 8 Weeks (5.9%) 6.8% 8.0% 8.1% 19.1% 30.1% 28.6% 38.2% 0% 10% 20% 30% 40% 50% OffertoCurrent IPOs FOs % Source: Dealogic. CapitalIQ. Bloomberg. (1) 2014E based on S&P 500 consensus price target estimate of 1,961 vs. closing price on 12/31/13. (2) Equity fund flows exclude ETFs. 11

15 Issuance ($bn) U.S. IPO Market Overview Summary of Issuance Most constructive IPO market in the past decade Most Active IPO Market Since 2000 Growth Sectors Leading Issuance $104.3 Healthcare 81 TMT 63 $46.2 $27.1 $18.2 $51.5 $38.1 $46.8 $53.2 $26.8 $27.0 Visa $44.0 $40.7 GM $46.7 FB $60.3 $20.4 Finance Industrials Energy # Real Estate Consumer LTM IPO Issuance (# of Offerings) Favorable IPO Pricing Environment for Issuers Number of Volume Average Aftermarket Performance Month Offerings ($bn) Pricing vs. Filing Range T+1 T+30 Current April % 44% 8% 9.4% 9.0% March % 64% 25% 24.5% 6.0% 7.7% February % 60% 10% 11.0% 31.8% 10.2% January % 41% 18% 24.1% 36.9% 20.7% December % 58% 25% 26.3% 36.1% 48.9% November % 48% 20% 15.2% 33.8% 40.4% October % 35% 35% 26.6% 38.5% 30.5% September % 45% 32% 25.2% 32.4% 30.8% August % 53% 13% 18.1% 26.3% 26.6% July % 52% 29% 14.7% 15.9% 19.6% June % 56% 11% 20.4% 40.1% 28.6% May % 59% 11% 10.3% 16.3% 73.4% LTM 264 $ % 50% 20% 18.6% 28.6% 28.6% Below Within Above Source: Dealogic. Excludes transactions less than $20.0 million, BCC/SPACs and reipos. 12 Average Aftermarket Performance Healthcare 31.5% TMT 31.9% Finance 14.8% Industrials 18.5% Energy 48.9% Real Estate 5.8% Consumer 39.3% LTM OffertoCurrent %

16 U.S. Industrials IPO Market Overview Summary of issuance, pricing and aftermarket performance of recent Industrials IPOs IPO Issuance $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 $5.8 $2.4 $2.4 $23.4 Pricing vs. Filing Range 100% 80% 60% 40% 20% 0% Aftermarket Performance 150% 130% 110% 90% 70% 50% 30% 10% (10%) (30%) $4.4 $3.8 $ $ % 8.3% 10.7% 5.9% 18.8% 28.6% 27.6% 33.3% 25.0% 32.1% 35.3% 50.0% 28.6% GM 43.8% 27.6% 66.7% 57.1% 37.5% 42.9% 58.8% 66.7% 37.5% 44.8% Below In Range Above 45.3% 39.2% 27.4% 118.6% 23.8% 16.6% (2.5%) (13.2%) OffertoCurrent % 88.0% Ex. SCTY 6 Industrials IPOs Since 2013 Pricing Offering Pricing % of Pricing Offerto (%) Date Issuer Name Size ($m) vs. Range Subsector Market Cap Metric 1Day Current 04/10/14 Farmland Partners Inc 53 R Other 63.9 Dividend Yield (7.3) (3.9) 02/12/14 Installed Building Products LLC 94 B Construction/Building EV / EBITDA /04/14 Continental Building Products Inc 189 B Construction/Building EV / EBITDA /31/14 New Home Company Inc 99 B Construction/Building 54.6 Price / Book /30/14 Malibu Boats Inc 113 R Transportation Price / Earnings /16/14 CHC Group Ltd 310 B Aero/Def EV / EBITDAR (2.0) (27.5) 12/11/13 Scorpio Bulkers Inc 351 A Shipping 26.0 Norway OTC Listed (2.6) (4.4) 11/20/13 Evogene Ltd 85 A Clean Tech 21.6 TASE Listed / DCF /20/13 Navigator Holdings Ltd 262 R Shipping EV / EBITDA /12/13 Dynagas LNG Partners LP 259 B Shipping 48.0 Dividend Yield /06/13 Avianca Holdings SA 409 B Aero/Def EV / EBITDAR (6.7) /06/13 LGI Homes Inc 114 B Construction/Building Price / Earnings /06/13 Norcraft Companies Inc 118 R Construction/Building EV / EBITDA (3.1) /03/13 OCI Partners LP 315 B Chemicals EV / EBITDA /12/13 OCI Resources LP 95 R Mining EV / EBITDA (5.3) /08/13 Stock Building Supply Holdings Inc 113 B Construction/Building EV / EBITDA /07/13 Fox Factory Holding Corp 148 R Auto/Truck Price / Earnings /01/13 Marrone Bio Innovations Inc 66 B Clean Tech EV / EBITDA 14.6 (0.3) 07/31/13 Ardmore Shipping Corp 140 B Shipping 55.4 Price / NAV (3.6) (9.8) 07/24/13 WCI Communities Inc 102 B Construction/Building 26.5 Price / Book /17/13 UCP Inc 116 R Construction/Building 42.0 Price / Book (6.7) (3.5) 07/16/13 NRG Yield Inc 495 A Clean Tech EV / EBITDA /26/13 HD Supply Holdings Inc 1,101 B Construction/Building EV / EBITDA /22/13 Constellium NV 367 B Metal & Steel EV / EBITDA (3.1) /22/13 Global Brass & Copper Holdings Inc 89 B Metal & Steel EV / EBITDA /22/13 Ply Gem Holdings Inc 381 A Construction/Building EV / EBITDA 11.0 (38.7) 05/15/13 William Lyon Homes Inc 250 A Construction/Building 32.5 Price / Book /09/13 BioAmber Inc 80 B Clean Tech EV / Sales (16.0) /17/13 Taminco Corp 254 B Chemicals EV / EBITDA (3.0) /09/13 KNOT Offshore Partners LP 180 R Shipping 49.0 Dividend Yield /09/13 Taylor Morrison Home Corp 723 R Construction/Building EV / REV /05/13 Boise Cascade Co 284 A Forestry & Paper EV / EBITA /30/13 TRI Pointe Homes Inc 268 A Construction/Building 49.8 Price / Book 12.1 (6.6) 01/17/13 Norwegian Cruise Line Holdings Ltd 514 A Shipping EV / EBITDA /17/13 SunCoke Energy Partners LP 257 R Metal & Steel 42.1 Dividend Yield (4.0) Deals Average: 97 A 23% Median: 16 R 29% Source: Dealogic. Excludes transactions less than $20.0 million. 13

17 Aftermarket Performance (%) U.S. Followon Market Overview Summary of issuance, pricing and aftermarket performance of recent FOs Key Points LTM Total: 719 Deals / $184.5bn 2013 Total: 688 Deals / $195.4bn 2012 Total: 534 Deals / $184.8bn Filetooffer pricing discounts have narrowed since 2012: 2014 Average: 3.6% 2013 Average: 5.1% 2012 Average: 6.1% The followon market seemed to take a bit of a breather last week with only 4 transactions pricing, raising $1.0 billion None of the transactions featured secondary components Only one deal was marketed for more than one day LTM Issuance by Sector # of Transactions Real Estate 14% TMT 18% Industrials 16% Consumer 6% Energy 13% Healthcare 22% Finance 11% Followon Aftermarket Performance 40.0% 30.0% 20.0% 10.0% 0.0% (10.0%) LTM Followon Issuance, Pricing and Aftermarket Performance 2.4% 2.8% 3.1% 2.0% 1.8% 1.4% (5.0%) 16.8% T+1 T+30 Current 33.4% Number of Volume Average Aftermarket Performance Month Offerings ($bn) FiletoOffer Discounts T+1 T+30 Current April % (0.3%) March % (7.7%) (7.2%) (5.1)% February % 5.5% (6.6%) January % 6.5% (2.6%) December % 7.3% 7.2% (5.3)% November % 5.6% 13.1% (4.7)% (3.5)% October % 3.2% 16.0% (3.8)% September (3.9)% 2.6% 6.6% 5.9% August (4.9)% 2.1% 4.1% 16.6% July (3.1)% 3.3% 0.7% 7.1% June (5.3)% 0.5% 8.1% 38.5% May (3.4)% 1.4% 3.8% 16.4% LTM 719 $184.5 (4.1)% 2.0% 3.8% 8.0% (2.8)% (1.8)% Source: Dealogic. Excludes transactions less than $20.0 million. 14

18 Debt Market Update 15

19 $Millions $Billions $Millions Debt Market Overview New Bank Loan Syndications Last Twelve Months High Yield Debt Issuance Last Twelve Weeks $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $68.7 $65.6 $61.7 $65.5 $55.1 $46.6 $48.0 $48.0 $43.4 $39.2 $34.4 $ Number of Deals $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $6,650 $6,340 $5,203 $3,610 $1,775 $11,645 $5,288 $5,382 $9,760 $8,400 $12,570 $6, Number of Deals Bank Deals Deals Weekly Issuance Deals High Yield Mutual Fund Flows Last Twelve Weeks $2,000 $1,500 $1,450 $1,000 $500 $804 $559 $560 $573 $455 $493 $640 ($500) ($196) ($223) ($1,000) ($1,500) ($909) ($972) Source: Standard & Poor s LCD, Jefferies Leveraged Finance Group. 16

20 Spread YTW Debt Market Overview Bank Loan Secondary Spreads Last Twelve Months L L L /13 6/13 8/13 10/13 12/13 2/14 4/14 BB B All BB/B High Yield Broad Market Index Last Twelve Months 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 4/13 6/13 9/13 11/13 2/14 4/14 B BB Market Metrics This Week Last Week One Year Ago 3 Month LIBOR 0.23% 0.23% 0.28% Prime 3.25% 3.25% 3.25% 5 year Treasuries 1.73% 1.59% 0.69% 30 year Treasuries 2.72% 2.65% 1.70% Source: Standard & Poor s LCD, Jefferies Leveraged Finance Group. 17

21 Maritime Bonds Shipping Price YTW STW Maturity Ratings Outstanding Supply Vessels Price YTW STW Maturity Ratings Outstanding CMA CGM 8.875% Sr Nts due ' % 751 4/15/2019 Caa2 / CCC 325 DryShips 5% Sr Nts due '14 (1) % /1/2014 / $ 610 Great Lakes Dredge & Dock 7.375% Sr Sub Nts due ' % 488 2/1/2019 B3 / B $ 250 HapagLloyd 9% Sr Nts due ' % /15/2015 Caa1 / B % Sr Nts due ' % /15/2017 Caa1 / B $ 250 Marquette Transportation % Sec Nts due ' % 526 1/15/2017 B3 / B $ 250 Navios Maritime Holdings 8.125% Sr Nts due ' % 669 2/15/2019 Caa1 / B+ $ % Sr Sec Nts due '22 (2) % 534 1/15/2022 B1 / BB $ 650 Navios South American Logistics 9.25% Sr Nts due ' % 612 4/15/2019 B3 / B+ $ 282 Norwegian Cruise Line 5% Sr Nts due ' % 294 2/15/2018 B2 / BB $ 300 Royal Caribbean Lines % Sr Nts due ' % 125 7/15/2015 Ba1 / BB $ % Sr Nts due ' % /15/2022 Ba1 / BB $ 650 Seaspan Corporation 6.375% Sr Nts due ' % 4/30/2019 / $ 345 Ultrapetrol Limited 8.875% Sr Sec due ' % 485 6/15/2021 B3 / B $ 225 Gulfmark Offshore 6.375% Sr Nts due ' % 352 3/15/2022 B1 / BB $ 500 Hornbeck Offshore Services 5.875% Sr Nts due ' % 339 4/1/2020 Ba3 / BB $ 375 5% Sr Nts due ' % 319 3/1/2021 Ba3 / BB $ 450 Seacor Holdings 7.375% Sr Nts due ' % /1/2019 Ba3 / BB $ 234 Tankers Price YTW STW Maturity Ratings Outstanding Eletson Holdings Inc % Secured due ' % 619 1/15/2022 / B $ 300 Navios Maritime Acquisition 8.125% Sr Nts due ' % /15/2021 B3 / B $ 610 Overseas Shipholding Group 8.125% Sr Nts due ' % 178 3/30/2018 WR / NR $ % Sr Nts due ' % 392 2/15/2024 WR / NR $ 150 Teekay Corporation 8.5% Sr Nts due ' % 343 1/15/2020 B2 / B+ $ 450 Windsor Petroleum Transport (FRO) 7.84% Secured due ' % 1,295 1/15/2021 Caa2 / CCC+ $ 189 Source: CapitalIQ and Bloomberg. 18