SPP s Middle Market Leverage Cash Flow Market At A Glance

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1 Check out SPP s new website at: Market Update May/June 214 SPP s Middle Market Leverage Cash Flow Market At A Glance Deal Component May/June 14 April 14 May 13 Cash Flow Senior Debt (x EBITDA) <$7.5MM EBITDA 1.x-2.x >$1.MM EBITDA 2.x-3.x >$25.MM EBITDA 3.-4.x <$7.5MM EBITDA 1.x-2.x >$1.MM EBITDA 2.x-3.x >$25.MM EBITDA 3.-4.x <$8.MM EBITDA 1.x-2.x >$1.MM EBITDA 2.x-3.x >$25.MM EBITDA 2.x-4.x Total Debt Limit (x EBITDA) <$7.5MM EBITDA 3.x-4.25x >$1.MM EBITDA 3.75x-5.x >$25.MM EBITDA 4.x-5.75x <$7.5MM EBITDA 3.x-4.25x >$1.MM EBITDA 3.75x-5.x >$25.MM EBITDA 4.x-5.75x <$8.MM EBITDA 3.x-4.25x >$1.MM EBITDA 3.x-4.x >$25.MM EBITDA 4.x-5.x Senior Cash Flow Pricing L+3.%-4.% (bank) L+4.%-6.% (non-bank) L+3.%-4.% (bank) L+4.%-6.% (non-bank) L+3.%-4.% (bank) L+4.%-6.% (non-bank) Second Lien Pricing (Avg) <$7.5MM EBITDA L+8.%-11.% floating (1.% floor) >$1.MM EBITDA L+6.%-9.% floating (1.% floor) <$7.5MM EBITDA L+8.%-11.% floating (1.% floor) >$1.MM EBITDA L+6.%-9.% floating (1.% floor) <$1.MM EBITDA L+9.%-12. floating >$15.MM EBITDA L+7.%-9.% floating Subordinated Debt Pricing <$7.5MM EBITDA 12.%-14.% >$1.MM EBITDA 11.%-13.% >$25.MM EBITDA 11.%-12.% Warrants limited to special situations; Second lien may buy down rate to ~9.%. <$7.5MM EBITDA 12.%-14.% >$1.MM EBITDA 11.%-13.% >$25.MM EBITDA 11.%-12.% Warrants limited to special situations; Second lien may buy down rate to ~9.%. <$7.5MM EBITDA 14.%-17.% >$1.MM EBITDA 13.%-15.% >$25.MM EBITDA 11.%-14.% One-Stop Pricing <$7.5MM EBITDA L+8.%-11.% floating >$1.MM EBITDA L+6.%-8.% floating Definite signs of rate compression evident; Potential for fixed rate with BDC or mezz lender. <$7.5MM EBITDA L+8.%-11.% floating >$1.MM EBITDA L+6.%-8.% floating Definite signs of rate compression evident; Potential for fixed rate with BDC or mezz lender. <$8.MM EBITDA 1.%-12.% >$1.MM EBITDA L+7.%-9.% Libor Floors No Libor floor for most bank deals; 1.% for non-bank deals, second lien, and floating rate one-stops. No Libor floor for most bank deals; 1.% for non-bank deals, second lien, and floating rate one-stops. No Libor floor for most bank deals; 1.%-1.5% for non-bank deals. Mezzanine Opt. Prepayment Though still subject to negotiation, there are increasingly no non-call periods with a market norm of 3.% in year one, 2.% in year two, 1.% in year three, and par thereafter; for second lien unitranche, ther are more aggressive prepayment schedules (2, 1, par). Highly negotiated; as competition for deals grows more intense in the final quarter, more investors are willing to go with no non-call, i.e., 3.% in year one, 2.% in year two, and 1.% in year three. Highly negotiated; coupon-only deals (no warrants) seeking no-call 1-2 years, with declining prepayment penalties (3, 2, 1, par). Significantly more latitude in warrant deals (SBIC maximum limited to 5, 4, 3, 2, 1). As coupon-only deals dominate, pre-payment premiums are scrutinized. Minimum Equity Contribution 25.%-35.% total equity (including rollover); minimum 1.% new cash combined with rollover or seller notes. Greater focus recently on general deal metrics than on level of new equity going in. 25.%-35.% total equity (including rollover); minimum 1.% new cash combined with rollover or seller notes. Greater focus recently on general deal metrics than on level of new equity going in. 25.%-35.% total equity (including rollover); minimum 15.% new cash in. Recap Liquidity Though commercial banks are taking a more circumspect approach to aggregate leverage in general, recap liquidity remains exceedingly high among all lending constituencies, with little or no price discrimination whatsoever. Non-bank commercial lenders, finance companies, and BDCs are providing the greatest liquidity on recaps as the commercial banks continue to take a harder credit perspective. Recap liquidity continues to be as abundant as any other type of liquidity and, most recently, is typified by leverage metrics not seen since the boom pre-recession days. Recent deal reports include a recap of 4.x/5.x senior/ub for a $17.MM LTM EBITDA issuer. Story Receptivity Increased deal flow into the market has made competition for assets a little less fierce; however, liquidity still far exceeds deal flow and storied paper is still getting a good audience. Market activity tends to slow down in the summer which translates to a greater audience for more challenging credits. Story receptivity remains strong, though primarily among non-bank commercial lenders and one-stops in cash flow deals. Banks are still quite aggressive on the more challenging credits for ABL deals with good asset coverage and at least a 1.15x fixed charge coverage (really frowning in term facilities with air ball exposure). Lack of traditional deal flow has kept the market in a highly receptive mode with respect to storied paper. Investors are eager to consider refinancing for troubled credits (even those in forbearance agreements), highly cyclical businesses, etc. The highly anticipated deluge of new deal flow has failed to materialize and, accordingly, investors are eager to deploy capital. Smaller issuers (sub- $5.MM EBITDA) are still getting a great deal of interest. Tone of the Market Q2 market conditions remain in excess liquidity mode. Slight pullback by the commercial banks combined with increased inflows to BDCs and credit opportunities funds have made unitranche structures ubiquitous in the market. With the advent of significantly greater participation of unitranche financing comes new inter-creditor challenges among participants and ABL lenders funding the revolving credit component of a unitranche loan. Deal flow continues to outpace 213 as M&A activity steps up combined with corporate issuers seeking expansion (e.g., capex, acquisitions, general growth initiatives). Many commercial banks remain in a state of flux as enhanced capital adequacy guidelines are working their way through credit committees to actual underwriting policies. There is evidence of slightly reduced bank participation across the board and especially for senior cash flow transactions for issuers sub-$1. million EBITDA. However, the normal lull in new deal flow for January issuers should compensate for any reduced commercial bank lender participation. Mezzanine liquidity conditions remain as robust as ever and competition for new deals should result in competitive pricing and terms. *Changes from last month in red

2 12-Month Percent Change Millions of Dollars Little darling It's been a long cold lonely winter Little darling It feels like years since it's been here Here comes the sun, do do do do Here comes the sun, and I say It's all right Little darling The smiles returning to the faces Little darling It seems like years since it's been here Here comes the sun, do do do do Here comes the sun, and I say It's all right Here Comes the Sun, The Beatles Here Comes the Sun? Though the remnants of an exceedingly bitter winter still haunt even the most recent macroeconomic reports, sun and warmer temperatures are bringing May flowers and increasingly upbeat macroeconomic indices, from increased nonfarm payrolls to some of the strongest retail sales and housing starts reports we have seen in years. However, as described in greater detail below, underneath the recent robust headline reports lay some stubborn lingering weaknesses that threaten GDP growth and create increasingly complex challenges for the Yellen Fed. Janet Yellen s testimony to the Joint Economic Committee on May 7 th reiterated her earlier commitment to maintaining current accommodative polices given the low level of inflation and continued weaknesses in the employment numbers. Although noting that recent reports suggest enhanced growth following the uniformly weak Q1 releases, forward guidance remains unchanged, and the expectation for near-zero interest rates will continue until the Fed has greater confidence the strength of the economy and the 2.% target level for inflation. The taper will continue (purchases now down from $85 billion to $45 billion per month) and rate increases remain a late-215 expectation. Although the Fed has reduced the level of stimulus with its ongoing taper program, it still maintains a balance sheet in excess of $4 trillion, creating increasing pressure to tighten monetary policy with each new positive economic report. Below is a quick summation of the key economic releases over the last few weeks: Consumer Confidence/Retail Sales: One of the bigger surprises to come out of the most recent spate of releases was the University of Michigan measure of consumer confidence. The Consumer Sentiment Index softened to 81.8 in May, down appreciably from the 84.1 in April and well below the consensus expectation of The numbers erase prior month s gains and essentially leave consumer confidence unchanged since December of 213. There is still a lot of confusion around the drop-off considering all of the data that provides support for a much stronger vote of confidence (e.g., recent record-setting gains in equities, increases personal real estate holdings, and the strong April unemployment report which was followed by two consecutive weeks of declines in jobless claims). Some point to higher costs at the gas pump, but for time being the number remains something of an outlier. Providing some support for the decline was a weaker than expected April retail sales release by the Commerce Consumer Sentiment Index Source: Thomson Reuters / University of Michigan Source: Conference Board 19, 185, 18, 175, 17, 165, 16, 155, 1, 145, 4.5% 4.% 3.5% 3.% 2.5% 2.% 1.5% 1.%.5%.% Source: BLS Consumer Confidence Index Retail Sales CPI and Core CPI ,942 CPI Core CPI

3 Thousands of Employees Department which came in at a meager +.1% (after a relatively healthy 1.5% jump in March). Inflation: Consumer prices in April recorded a more than surprisingly robust.3% increase (vs..1% consensus expectation), which pushed the annual CPI to a nine-month high of 2.%. This is up.5% from March and suggests that CPI may surpass the 2.% target inflation rate set by the Fed. Excluding the more volatile food and energy components, core prices still rose.2% month-over-month and the annual core inflation rate rose to an eight-month high of 1.8%. William Dudley, president of the New York Fed, commented on May 2 th that he anticipated inflation to only drift higher over the remainder of the year, that the 2.% inflation target is not a ceiling, and ostensibly that merely surpassing the 2.% target would not precipitate an increase in interest rates per se. GDP: The wealth effect created by recent record setting levels in the S&P and the Dow, combined with continued increases in housing prices, has pushed expectations for GDP growth in 214 to a range from 2.5%-3.%, a healthy uptick from the particularly anemic.1% recorded for Q1. It is generally accepted now that Q1 s weakness (consensus expectation had ranged from 1.2% to 1.5% for Q1) was more heavily influenced by the adverse weather conditions than previously thought, which softened corporate spending and depressed housing activity. More indicative of current economic strength is the April ISM index, which came in at 54.9 (see below) and roughly correlates to GDP growth of 3.75%. Manufacturing: As noted above, the April ISM manufacturing index, released in May registered a healthy 54.9 (anything above signals growth). It represented the 11 th consecutive gain in the index and a 1.2 point gain over the prior period. Digging deeper into the sub-indices, gains were widespread. The employment sub-index popped 3.6 points to 54.7, new orders were unchanged at 55.5 in March, and new export orders were up 1.5 points to a reading of 57. The manufacturing releases, taken collectively, suggest the sector is shaking off the harsh weather effects of Q1, and there is renewed optimism for continued growth in coming months. Employment: Gains in non-farm employment for April were substantially above expectations. The consensus was approximately 215,, but payrolls topped 288,, pushing the unemployment rate down from 6.7% to 6.3% (and.2% below the previously articulated, and subsequently abandoned, Fed trigger at 6.5%). Private payrolls led the charge, increasing by 273, (up from the upwardly revised 22, in March). Though the headline numbers suggest a robust recovery from the adverse weather conditions that depressed the employment reports in prior months, there remains a fair amount of noise underneath the headlines that should temper some of the enthusiasm. Specifically, the Labor Force Participation Rate dropped from 63.% to 62.8% as the civilian labor force dropped by 86, people (these people technically are not unemployed anymore as they are not considered part of the workforce, and as such, actually reduce the Unemployment Rate). The Participation Rate has hovered at the 62.8% level since October of 213 and represents the lowest Participation Rate since Another big disconnect (for me at least) is that Average Hourly Earnings were unchanged in April at $ As a general proposition, average weekly hours will be more severely impacted by adverse weather conditions (i.e., people remain unpaid for hours missed due to poor weather), yet the strength of the headline employment numbers are almost uniformly attributed to better weather conditions which should in turn increase average hours worked and average hourly earnings. Quarterly Change in Real GDP 6.% 4.% 2.%.1%.% -2.% -4.% -6.% -8.% -1.% ISM Manufacturing and Non-Manufacturing Indices Manufacturing Non-Manufacturing 2 1 Nonfarm Payroll Employment (Seasonally Adjusted) 14, 138, 136, 134, 132, 13, 128, 126, 124, Source: BLS 12.% 1.% 8.% 6.% 4.% 2.%.% Source: BLS Unemployment Rate 138, %

4 Thousands of Units Thousands of Units Housing: The biggest positive to come out of the housing sector in recent weeks is that the number of permits for new housing units jumped 8.% in April to an annualized 1.8 million. The number of homes on which builders began construction also rose a commanding 13.%. Warmer weather seems to have kick-started housing construction, albeit most of the growth is concentrated in rental apartments and not single-family homes. The number of permits for single-family homes rose by an annualized rate of 2, vs. permits for multi-family structures which rose by 81,. The February Case-Schiller 2-City Home Price Index reported a.8% month-over-month increase which translates to 12.9% year-overyear. While that represents a contraction from the 13.7% increase recorded in November of 213, it still represents more than five times the growth rate of disposable income per capital for the same period. The Private Market: Metrics and Trends: The SPP Q3 Preview I. Asset-Based Loans II. AB lenders report significant liquidity and remain focused on the middle market. Generally there is bias against revolving credit facilities comprised primarily of inventory and reluctance to have large undrawn facilities. In most cases, lenders require a positive fixed charge coverage (>1.x). Lenders are comfortable with up to a modest (approximately 15.%) air ball for traditional asset-based structures. Lenders are increasingly comfortable with second liens behind them if asset coverage is strong. ABL middle market pricing is among the most competitive rates available: o L+1.%-1.75% for most clean deals (larger $1 million deals toward the outer band); o L+2.25%-2.75% for more storied credits; and o No Libor floors. Capex lines are readily available: o Will finance up to 8.%-85.% of asset cost; o Amortization likely to mirror term facilities; and o Capex facility can provide a big boost to fixed charge coverage as only unfunded amounts deducted from EBITDA (i.e. Fixed Charge Coverage = (EBITDA-Unfunded Capex)/(Interest + Fixed Amortization + Cash Taxes) Undrawn revolver pricing ranges from.25%-.% and is inversely related to usage of facility. Four- to five-year maturities are typical. Closing fees are in the.25%-.% range. Senior Cash Flow Middle Market Loans 214 year-to-date volume continues to outpace 213. Lenders report significant competition for new assets, especially for larger ($35+ million EBITDA) sponsored transactions which often have B tranches, or last-out, and covenant-light structures. No covenant-light structures are available for lower middle market deals (sub-$2 million). Maturities: Four- and five-year maturities are the most common; seven-year maturities are available in some cases. Commercial banks are increasingly conservative as a result of capital adequacy guidelines: o Generally reluctant to lend in excess of 3.x senior debt/ebitda and 4.x total debt/ebitda. 65.5% 65.% 64.5% 64.% 63.5% 63.% 62.5% 62.% 61.5% Source: BLS $24. $24. $23. $23. $22. $22. $21. $21. 6, 5, 4, 3, 2, 1, Labor Force Participation Rate Average Hourly Earnings Existing Home Sales New Single-Family Homes Sold 62.8% $ ,6 384

5 Billions of Dollars Index (Jan. 2 = ) Closing fees:.6%-1.% (non-bank lenders routinely at 1.%). Amortization structures: o Commercial banks: The most common amortization is a structure now five- to seven-year straight line with a balloon in year five; and Generally want to see a minimum of at least 35.% amortized in the first three years, but will consider slightly back-loaded structures. o Non-bank commercial lenders:.%-5.% amortization per annum with a.% excess cash flow sweep. Commercial banks do not require a Libor floor, but most non-bank senior lenders are still pushing for 1.% Libor floor. Lower middle market pricing and leverage metrics: o Most commercial banks are generally not competitive for smaller (sub-$5. million EBITDA) cash flow credits, pushing such borrowers to non-bank senior and unitranche alternatives; o Sub-$7.5 million EBITDA issuers with no sponsor are rarely above 1.x-2.x SD/LTM EBITDA, but sponsored deals often achieve 2.x SD/LTM EBITDA. Pricing grids: o Commercial bank lenders: L+3.%-4.% for leveraged middle market deals; Higher quality, less leveraged deals as low as 1.% to 2.%; Upfront fees:.375%-.563%;.2%-.375% unused, but generally higher where there are more unused proceeds; Par call at any time; Term facilities are being priced at or with a small premium (.25%-.%) to revolving credit facilities; and Highly leveraged deals generally considered as anything out of the 3.x senior, 4.x total box. o Non-bank commercial lenders: L+4.%-5.% for <2.x SD/EBITDA; L+4.%-6.% for >3.x SD/EBITDA; L+5.%-6.% for <$7.5 million EBITDA; Upfront fees: 1.%-2.%; Prepayment penalties: no call or 2.% year one, 1.% in year two, par calls thereafter ,8 1,6 1,4 1,2 1, Case-Shiller 2-City Home Price Index U.S. Business Loans, Seasonally Adjusted Average Debt Multiples of Middle Market Loans 7.x 6.x 5.x 4.x 3.x 2.x 1.x.x FLD/EBITDA SLD/EBITDA Sub Debt/EBITDA Source: Standard & Poor s ,686.7 III. Unitranche Average Debt Multiples of Middle Market LBO Loans 214 unitranche activity continues experience dramatic growth, fastest growing lender constituency in private capital markets: o Focused primarily on $5. million to $15. million in LTM EBITDA (though will do smaller and larger deals); and o Largely industry agnostic. Structures primarily cash flow-based and focused on enterprise value. Pricing has come in to 2 basis points since Q Term loan facilities: o Amortization ranges from.%-1.% per annum with an excess cash flow sweep; and o Most lenders focus on 5.% amortization with % excess cash flow sweep. Closing fees range from 1.%-2.%. Significant arbitrage opportunity by matching a unitranche term with a low-priced ABL revolver. Prepayment provisions range among investors, but the norm is a 3.%, 2.%, 1.% declining premium. 7.x 6.x 5.x 4.x 3.x 2.x 1.x.x FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA Source: Standard & Poor s

6 In Millions Investors include commercial finance companies, BDCs, traditional mezzanine funds, and credit opportunity funds, and some mezz LPs. Maturities commonly five years. Typical lower middle market unitranche debt tolerance metrics range from 3.x-4.x LTM EBITDA: o Average of approximately 3.75x; o The most aggressive seen by SPP is 5.x with an equity coinvestment; o Higher levels restricted to double-digit EBITDA. Fixed charge coverage is routinely set at a 2.% discount to projections with a floor of 1.1x; Equity co-invest widely available. Fixed and floating rates both available; Pricing is surprisingly consistent across the credit spectrum: o L+8.%-11.% the norm for most sub-$7.5 million EBITDA; and o L+6.%-8.% for $1.+ million EBITDA issuers. New-Issue Middle Market Loan Volume by Month $2, $2, $1, $1, $ $ Institutional Pro Rata Source: Standard & Poor s Percent Outstanding Loans in Default or Bankruptcy 7.% IV. Mezzanine Market The consensus is that current pricing and leverage multiples have stabilized. Traditional subordinated debt remains among most competitive lender constituencies (fierce competition for assets). Creative mezzanine alternatives are abundant, e.g., last-out notes, senior unsecured notes, second-lien notes, split-lien notes, and preferred shares. A minimum cash coupon of 11.%-12.% is generally required. Current leverage metrics: o <$7.5 million EBITDA: 3.x-4.25x; o >$1. million EBITDA: 3.75x-5.x; o >$25. million EBITDA: 4.x-5.75x; and o Storied or challenged credits: 3.x-4.x. All-in (cash & PIK) pricing schemes: o <$7.5 million EBITDA: 12.%-14.%; o >$1. million EBITDA: 11.%-13.%; and o >$25. million EBITDA: 11.%-12.%. 1.%-11.% deals are available with a true second lien position (i.e. not silent). Warrants are rarely ever required (limited to small leveraged recaps with no sponsor, storied credits, or nose-bleed leverage). Investors are routinely seeking silent second lien positions. 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 captive mezz funds often provide below market pricing dynamics. Minority equity and co-invest equity strips are readily available (equity co-invest generally does not exceed 1.%-15.% of associated debt instrument). Prepayment provisions are highly negotiable and very investorspecific (general acceptance of traditional 3.%, 2.%, 1.% prepayment premium schemes); and Upfront fees average 1.%-2.%. 6.% 5.% 4.% 3.% 2.% 1.%.% Source: Standard & Poor s April Deal Count April 212 April 213 April 214 Source: Pitchbook April Exit Activity April 212 April 213 April 214 Source: Pitchbook.48% Total Deals <M <2M Total Exits <M <2M

7 SPP Tracked Market Activity Pitchbook s reported April 214 private market activity remains on its scorching pace. Both total deals and total exits continue to exceed that of previous years by a substantial margin. There were 28 total deals closed in April of 214, compared to only 111 closed in April 213 and 186 in April 212. Year-to-date total deals have now reached 821 as of April 214, up from 8 in 213 and 644 in 212. Standard and Poor s reports a slight decline in total leverage tolerances for middle market loans. The average total debt multiple is now at 4.x EBITDA, compared to 4.32x EBITDA in February 214 (March numbers are unavailable) and 4.89x EBITDA in April 213. However, the middle market total loan volume increased overall. Total new-issue middle market loan volume reached $1.6 billion in April 214, compared to only $24 million in March 214 and $1.4 billion in April 213. 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 YTD Deal Count YTD 212 YTD 213 YTD 214 Source: Pitchbook YTD Exit Activity YTD 212 YTD 213 YTD 214 Source: Pitchbook Total Deals <M <2M Total Exits <M <2M DISCLAIMER: The "SPP Leveraged Cash Flow Market At-A-Glance" 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

8 7.x 6.x 5.x 4.x 3.x 2.x 1.x.x SUPPORTING DATA Historical Cash Flow Senior Debt (x EBITDA) Historical Total Debt Limit (x EBITDA) 7.x 6.x 5.x 4.x 3.x 2.x 1.x.x < $7.5MM EBITDA > $1MM EBITDA > $25MM EBITDA 7 bps 6 bps bps 4 bps 3 bps 2 bps bps bps Historical Senior Cash Flow Pricing (Bank) < $7.5MM EBITDA > $1MM EBITDA > $25MM EBITDA Historical Senior Cash Flow Pricing (Non-Bank) 7 bps 6 bps bps 4 bps 3 bps 2 bps bps bps Bank Lower Bound Bank Upper Bound Non-Bank Lower Bound Non-Bank Upper Bound Historical Second Lien Pricing Historical Subordinated Debt Pricing 18% 18% 15% 12% 9% 6% 3% % 15% 12% 9% 6% 3% % Lower Bound LIBOR Floor Lower Bound Upper Bound LIBOR Floor Upper Bound <$7.5MM EBITDA >1MM EBITDA > $25MM EBITDA Historical Minimum Equity Contribution Secondary High Yield Pricing 6% 11. % 15. 4% 3% 2% 1% % 85. Lower Bound Upper Bound Secondary High Yield Pricing SPP Value Inflection Point Source: Piper Jaffray Debt Capital Markets Update