TOTAL DEBT AT 17.3BN; TELECOM BONDS LEAD WITH EUR 8.85BN IN ISSUANCE

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1 Howard Tang, CFA Global Head of Debtwire Research Yana Dostinova Head of Europe Research +44 (0) Nick Smith-Saville Senior Analyst +44 (0) Vasudha Sud, CFA +44 (0) Peter Prek +44 (0) Florian Schwarz +44 (0) TOTAL DEBT AT 17.3BN; TELECOM BONDS LEAD WITH EUR 8.85BN IN ISSUANCE ITALY LEVERAGED FINANCE IN REVIEW FY14 EDITION

2 Value of Issuance per Year EURm Leveraged loans High yield bonds 20,000 18,000 16,000 3,464 14,000 12,000 2,920 10,000 8, ,540 13,833 6,000 4,169 9,739 7, ,000 4,874 1,950 3,711 2,000 3,364 3,451 2,950 2,029 1,750 1, Volume of Issuance per Year The value of Italian debt issuance rose 36.6% YoY to EUR 17.3bn as the total number of deals fell to 27 from 36 in FY13. High yield bond issuance represented 80% of the total debt as companies raising debt sought better rates as market conditions improved. Leveraged loans contributed the remaining 20% or EUR 3.5bn of the amount in FY14. Issuance of both loans and high yield bonds was primarily driven by refinancing activities. The demand for Italian debt was driven by an increased investor search for yield along with an upgrade in the country s credit outlook to stable from negative by Moodys in Waste Italia, the waste management company, which was also the only debut issuer in 4Q14, paid the highest coupon in FY14 of 10.5% for its EUR 200m senior secured notes due 2019 in addition to an OID of On the other hand, Beni Stabili, the real estate group, paid the lowest coupon in FY14 of 3.5% on its EUR 200m senior unsecured notes due Bond issuance surged 42% YoY to EUR 13.8bn in FY14, with the average bond size rising to EUR 629m from EUR 348m in the previous year. Approximately 85% of the amount raised came in the first half with Spa contributing EUR 7.8bn, the largest deal by value in FY14. On a quarterly basis, issuance in 4Q14 plunged 92% YoY to EUR 250m from two deals versus EUR 3.14bn from ten deals in 4Q13. Number of issuers Leveraged loans High yield bonds Loan allocations increased 19% YoY to EUR 3.5bn in FY14. 4Q14 reported a single loan deal worth EUR 500m compared to four deals amounting to EUR 655m in 4Q13. Construction firm, Astaldi s EUR 500m loan due 2019 was the only loan completed in 4Q14. The loan was written with a pool of Italian and foreign banks and was used to refinance an existing loan of EUR 325m maturing in Finmeccanica, the aerospace and defence firm raised a EUR 2.2bn loan which represented 64% of the total FY14 loans. The bond market was dominated by the telecommunication industry which raised debt worth EUR 8.9bn, representing 64% of the total bonds. Of this, raised EUR 7.85bn equivalent while Telecom Italia raised EUR 1bn senior unsecured notes due Bond volumes reflect number of instruments issued; loan volumes represent number of deals signed. 2 analytics.debtwire.com

3 Bond Issuance by Industry Bond Issuance Use of Proceeds Services 50 Healthcare 275 Technology Consumer Products Aerospace & Defense Pharmaceuticals Real Estate Automotive Telecommunications ,650 Telecommunications Aerospace & Defense 8, ,000 4,000 6,000 8,000 10,000 Technology Media Consumer Products Gaming Services Automotive ,500 3, ,000 2,000 3,000 4,000 Refinance Debt 51% Refinance Bond, 29%, 19% Add-on Acquisition, 1% Refinance Loan, 0%, 41% Refinance Loans, 41%, 12% Acquisition, 6% Loan Issuance by Industry Loan Issuance Use of Proceeds Consumer Products ,050 Gaming Retail Services Refinance Loan 78% Refinance Debt 16% 6% Refinance Debt 95% LBO Financin 5% Aerospace & Defense 2, Automotive 2, ,000 1,500 2,000 2, ,000 1,500 2,000 2,500 3 analytics.debtwire.com

4 Bonds Issued in priced Issuer Currency Actual Size (m) Coupon (%) Seniority Maturity Industry Use of proceeds Call Protection S&P Mdy s At launch Trading on 13/02/2015 OID YTM Price YTM 17-Jan Finmeccanica SpA EUR Senior Unsecured 2021 Aerospace & Defense N/A BB+ Ba % % 17-Jan Telecom Italia EUR 1, Senior Unsecured 2021 Telecommunications Refinance Debt N/A BB+ N/A % % 10-Feb Astaldi EUR Senior Unsecured 2020 Refinance Debt N/A B+ B % % 17-Mar Fiat EUR 1, Senior Unsecured 2021 Automotive 24-Mar IVS Italia EUR Senior Secured 2020 Services N/A BB- B % % N/A BB- N/A % % 08-Apr 08-Apr EUR 1, Senior Unsecured 2021 Telecommunications Refinance Bond NC-3 B Caa % N/A N/A USD 2, Senior Unsecured 2021 Telecommunications Refinance Bond NC-3 B Caa % N/A N/A 16-Apr Piaggio & C s.p.a. EUR Senior Unsecured 2021 Automotive Refinance Bond NC-3 BB- Ba % % 16-Apr TeamSystem SpA EUR Senior Secured 2020 Technology Add-on Acquisition NC-2 B- B % % 17-Apr Kedrion EUR Senior Unsecured 2019 Pharmaceuticals Refinance Debt N/A NR NR % % 29-May Officine Maccaferri SpA EUR Senior Unsecured 2021 Refinance Debt NC-3 N/A B % % 24-Jun 24-Jun 24-Jun EUR 575 E+ 4 Senior Secured 2020 Telecommunications Refinance Debt NC-1 BB Ba3 100 N/A N/A N/A EUR 2, Senior Secured 2020 Telecommunications Refinance Debt NC-2 BB Ba % N/A N/A USD 1, Senior Secured 2020 Telecommunications Refinance Debt NC-2 BB Ba % N/A N/A 4 analytics.debtwire.com

5 Bonds Issued in FY14 priced Issuer Currency Actual Size (m) Coupon (%) Seniority Maturity Industry Use of proceeds Call Protection S&P Mdy s At launch Trading on 11/11/2014 OID YTM Price YTM 11-Jul Fiat S.p.A EUR Senior Unsecured 2022 Automotive 11-Jul Cooperativa Muratori e Cementisti, C.M.C di Ravenna EUR Senior Unsecured 2021 N/A BB- B1 N/A 4.75% % Refinance Debt NC-3 B B % 15-Jul Light Force (doing business as Twin Set) EUR Senior Secured 2019 Consumer Products Refinance Debt NC-1.5 B B1 99 N/A N/A 4-Sep Fiat EUR Senior Secured 2022 Automotive N/A BB- B % % 23-Oct Rhiag Group Ltd EUR Senior Secured 2020 Automotive Refinance Debt N/A B2 B N/A N/A 08-Nov Gruppo Waste Italia EUR Senior Secured 2019 Loans Issued in FY14 Industrial products & Refinance Debt NC-3 B2 NR % % Freed To Trade Company Name Currency Actual Size (m) Debt Instrument Interest Maturity Industry Use of Proceeds 19-Jun Italcementi SpA EUR 450 Revolver N/A 2019 Refinance Debt 10-Jul Finmeccanica SpA EUR 2,200 Revolver N/A 2019 Aerospace & Defence Refinance Loan 11-Jul Cooperativa Muratori e Cementisti, C.M.C di Ravenna EUR 100 Revolver N/A 2017 Refinance Debt 29-Aug Megadyne SpA USD Term Loan A L Aug Megadyne SpA USD 32.5 Term Loan B L Aug Megadyne SpA EUR Term Loan A E Aug Megadyne SpA EUR 97.5 Term Loan B E Aug Megadyne SpA EUR 20 Revolver E Aug Megadyne SpA EUR 30 Acquisition Facility E Nov Astaldi S.p.A EUR 500 Revolver N/A 2019 Refinance Loan 5 analytics.debtwire.com

6 DEBTWIRE S HIGH YIELD AND LEVERAGED LOAN ISSUANCE DATA TRACKS NEW DEBT ISSUANCE UNDER THE FOLLOWING CRITERIA: Debt issued and/or marketed in western Europe that is publicly traded; Speculative grade corporate family rating and issue rating by both S&P and Moody s, or non-rated issuers in line with similar sub-investment grade credits. Excludes any split-rated crossover issuers and/or issues; Leveraged loans with spreads above Libor+ 200bps and total leverage above 3x. The data is derived from a combination of Debtwire intelligence and company announcements. It does not include convertible bonds, equipment trust certificates, enhanced equipment trust certificates and pass through certificates, or asset-backed securities. 6 analytics.debtwire.com

7 YOUR DEBTWIRE TEAM Howard Tang, CFA Global Head of Debtwire Research Vasudha Sud, CFA +44 (0) Jonathan Reed Managing Director Yana Dostinova Head of Europe Research +44 (0) Florian Schwarz +44 (0) Angus Codd Head of Sales, EMEA +44 (0) Nick Smith-Saville Senior Analyst +44 (0) Peter Prek +44 (0) Ken Meehan Editor-in-Chief DISCLAIMER Disclaimer: Prepared by staff of Debtwire and is for information only. We have obtained the information provided in this report in good faith from sources which we consider to be reliable, but we do not independently verify the information. Data in this report has been derived from company reports, press releases, presentations and Debtwire intelligence and Debtwire research. Issuance data is liable to change when Debtwire is made aware of the issuance of new bonds and loans that are not already included in the database. The information is not intended to form the basis of any investment decisions, should not be considered a recommendation by Debtwire or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Any opinions or estimates given may change. Debtwire undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. Debtwire, its officers, employees and affiliates shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. No liability is accepted by Debtwire for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient s organization. This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Debtwire to any registration or licensing requirement within such jurisdiction. 7 analytics.debtwire.com