REUTERS Carlo Allegri Middle Market Weekly Sponsored Lending

REUTERS / Carlo Allegri Middle Market Weekly - Sponsored Lending January 12 th, 2018 Thomson Reuters LPC frances. beyers@tr. com diana. diquez@tr. com david. puchowski@tr. com

MM WEEKLY - SPONSORED 2017 sponsored syndicated loan issuance reached an all time high of $78 B • 4 Q 17 middle market sponsored issuance was $20. 9 B, the highest quarter in 4. 5 years • 2017 issuance of $77. 7 B was 48% higher than 2016’s level and set a new annual record Quarterly sponsored issuance Annual sponsored issuance 30. 0 90. 0 Issuance (US$bn) 25. 0 20. 0 15. 0 10. 0 80. 0 1 Q 2 Q 70. 0 3 Q 4 Q 60. 0 50. 0 40. 0 30. 0 20. 0 5. 0 10. 0 2 SOURCE: THOMSON REUTERS LPC 0. 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1 Q 16 1 Q 15 1 Q 14 1 Q 13 1 Q 12 1 Q 11 1 Q 10 1 Q 09 1 Q 08 1 Q 07 1 Q 06 1 Q 05 1 Q 04 1 Q 03 1 Q 02 0. 0

MM WEEKLY - SPONSORED LPC tracked 540 syndicated middle market sponsored deals in 2017, the second highest deal count on record and more than the 495 deals logged in 2007 Middle market sponsored number of deals 600 Number of sponsored deals 1 Q 2 Q 3 Q 4 Q 500 400 300 200 100 3 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 0

MM WEEKLY - SPONSORED Sponsored share of middle market issuance increased to almost half of the total in 2 H 17; the highest level since 1 Q 07 Sponsored and non-sponsored market share 120% Middle market loan market share 100% 80% 60% Non-sponsored Sponsored 40% 20% 4 SOURCE: THOMSON REUTERS LPC 3 Q 17 1 Q 17 3 Q 16 1 Q 16 3 Q 15 1 Q 15 3 Q 14 1 Q 14 3 Q 13 1 Q 13 3 Q 12 1 Q 12 3 Q 11 1 Q 11 3 Q 10 1 Q 10 3 Q 09 1 Q 09 3 Q 08 1 Q 08 3 Q 07 1 Q 07 3 Q 06 1 Q 06 3 Q 05 1 Q 05 3 Q 04 1 Q 04 3 Q 03 1 Q 03 3 Q 02 1 Q 02 3 Q 01 1 Q 01 3 Q 00 1 Q 00 0%

MM WEEKLY - SPONSORED 4 Q 17 traditional MM syndicated sponsored lending collapsed to lowest level since 1 Q 13; while large MM logged its highest quarterly level since 2 Q 13 • Traditional middle market sponsored issuance is down driven by large holds and lenders’ ability to take down smaller deals on their own • 4 Q 17 large middle market sponsored issuance was $18. 8 B, up 11% from 3 Q 17 and 28% from 4 Q 16 30. 0 27. 5 25. 0 22. 5 20. 0 17. 5 15. 0 12. 5 10. 0 7. 5 5. 0 2. 5 0. 0 Trad. MM Large MM 1 Q 07 2 Q 07 3 Q 07 4 Q 07 1 Q 08 2 Q 08 3 Q 08 4 Q 08 1 Q 09 2 Q 09 3 Q 09 4 Q 09 1 Q 10 2 Q 10 3 Q 10 4 Q 10 1 Q 11 2 Q 11 3 Q 11 4 Q 11 1 Q 12 2 Q 12 3 Q 12 4 Q 12 1 Q 13 2 Q 13 3 Q 13 4 Q 13 1 Q 14 2 Q 14 3 Q 14 4 Q 14 1 Q 15 2 Q 15 3 Q 15 4 Q 15 1 Q 16 2 Q 16 3 Q 16 4 Q 16 1 Q 17 2 Q 17 3 Q 17 4 Q 17 Issuance (US$bn) Sponsored Issuance: Large vs. Traditional 5 SOURCE: THOMSON REUTERS LPC Traditional MM – Deal size <=$100 M Large MM - Deal size >$100 M to $500 M For all: Borrower sales <$500 M

MM WEEKLY - SPONSORED In 2017, sponsors shifted more towards rated executions vs. 2014 -2016 years The share of B-rated credits was the highest since 2013 at 28% 90% 4 Q 16 80% 1 Q 17 70% 2 Q 17 60% 3 Q 17 50% 4 Q 17 40% 30% 20% 10% 0% BB 6 SOURCE: THOMSON REUTERS LPC Middle market sponsored issuance ratings distribution (bank loan rating) Sponsored volume share by bank loan ratings Middle market sponsored issuance ratings distribution (bank loan rating) BB/B B NR Other 90% 80% 2013 70% 2014 60% 2015 50% 2016 40% 2017 30% 20% 10% 0% BB BB/B B NR Other

MM WEEKLY - SPONSORED Sponsored new money volume in 2017 was just $350 M shy of 2007’s record • At $57. 1 B, 2017 new money was on par with 2007’s high ($57. 5 B), sponsored refis of $20. 6 B were up 32% from 2016 levels Sponsored: quarterly new money vs. refi 20. 0 16. 0 Issuance (US$bn) 14. 0 12. 0 10. 0 8. 0 6. 0 New Money Refis. New Money Share 100% 80. 0 90% 70. 0 80% 70% 60. 0 60% 50. 0 50% 40. 0 40% 30. 0 30% 20. 0 20% 2. 0 10% 0. 0 0% 1 Q 03 3 Q 03 1 Q 04 3 Q 04 1 Q 05 3 Q 05 1 Q 06 3 Q 06 1 Q 07 3 Q 07 1 Q 08 3 Q 08 1 Q 09 3 Q 09 1 Q 10 3 Q 10 1 Q 11 3 Q 11 1 Q 12 3 Q 12 1 Q 13 3 Q 13 1 Q 14 3 Q 14 1 Q 15 3 Q 15 1 Q 16 3 Q 16 1 Q 17 3 Q 17 4. 0 SOURCE: THOMSON REUTERS LPC 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Issuance (US$bn) 18. 0 7 90. 0 New money Refinancing New money % of sponsored volume 22. 0 Sponsored: annual new money vs. refi

MM WEEKLY - SPONSORED Add-on acquisition volume of $15. 2 B in 2017 was second highest level on record (only 4% shy of 2006 high of $15. 8 B) Sponsored volume: New money breakout MM sponsored new money issuance (US$bn) 22. 0 20. 0 18. 0 LBO Add-on acquisition Dividend Recap New Money - Other 16. 0 14. 0 12. 0 10. 0 8. 0 6. 0 4. 0 2. 0 1 Q 03 2 Q 03 3 Q 03 4 Q 03 1 Q 04 2 Q 04 3 Q 04 4 Q 04 1 Q 05 2 Q 05 3 Q 05 4 Q 05 1 Q 06 2 Q 06 3 Q 06 4 Q 06 1 Q 07 2 Q 07 3 Q 07 4 Q 07 1 Q 08 2 Q 08 3 Q 08 4 Q 08 1 Q 09 2 Q 09 3 Q 09 4 Q 09 1 Q 10 2 Q 10 3 Q 10 4 Q 10 1 Q 11 2 Q 11 3 Q 11 4 Q 11 1 Q 12 2 Q 12 3 Q 12 4 Q 12 1 Q 13 2 Q 13 3 Q 13 4 Q 13 1 Q 14 2 Q 14 3 Q 14 4 Q 14 1 Q 15 2 Q 15 3 Q 15 4 Q 15 1 Q 16 2 Q 16 3 Q 16 4 Q 16 1 Q 17 2 Q 17 3 Q 17 4 Q 17 0. 0 8 SOURCE: THOMSON REUTERS LPC

MM WEEKLY - SPONSORED Dividend recap lending of $6. 9 B in 2017 more than doubled the $3. 6 B recorded in 2016 • While annual issuance was higher than 2016 levels, it was way below the record $13. 8 B reached in 2013 Middle market dividend recap volume 7. 0 Dividend Recap 25% % of total sponsored 5. 0 20% 4. 0 15% 3. 0 10% 2. 0 5% 1. 0 9 SOURCE: THOMSON REUTERS LPC 3 Q 17 1 Q 17 3 Q 16 1 Q 16 3 Q 15 1 Q 15 3 Q 14 1 Q 14 3 Q 13 1 Q 13 3 Q 12 1 Q 12 3 Q 11 1 Q 11 3 Q 10 1 Q 10 3 Q 09 1 Q 09 3 Q 08 1 Q 08 3 Q 07 1 Q 07 3 Q 06 1 Q 06 3 Q 05 1 Q 05 3 Q 04 1 Q 04 3 Q 03 1 Q 03 3 Q 02 1 Q 02 3 Q 01 0% 1 Q 01 0. 0 Dividend as % of sponsored 6. 0 Issuance (US$bn) 30%

MM WEEKLY - SPONSORED LBO volume reached a post-crisis high of $28 B in 2017, 5% behind 2007’s record • LBO volume reached $7. 7 B in 4 Q 17, up 15% from 3 Q 17 and up 30% year-over-year Middle market LBO volume 70% 9. 0 LBO Issuance (US$bn) 8. 0 LBO % of Sponsored 60% 50% 7. 0 6. 0 40% 5. 0 30% 4. 0 3. 0 20% 2. 0 10% 1. 0 0% 1 Q 00 3 Q 00 1 Q 01 3 Q 01 1 Q 02 3 Q 02 1 Q 03 3 Q 03 1 Q 04 3 Q 04 1 Q 05 3 Q 05 1 Q 06 3 Q 06 1 Q 07 3 Q 07 1 Q 08 3 Q 08 1 Q 09 3 Q 09 1 Q 10 3 Q 10 1 Q 11 3 Q 11 1 Q 12 3 Q 12 1 Q 13 3 Q 13 1 Q 14 3 Q 14 1 Q 15 3 Q 15 1 Q 16 3 Q 16 1 Q 17 3 Q 17 0. 0 10 SOURCE: THOMSON REUTERS LPC LBO as % of sponsored 10. 0

MM WEEKLY - SPONSORED Sponsor-to-sponsor share of buyouts is dropping late in the cycle (compared to 2010 -2014 levels) as sponsors turned to new LBOs in 2017 MM LBO & secondary buyout volume 9. 0 SBO (sponsor-to-sponsor LBO) SBO as % of LBO 8. 0 80% LBO (new) Issuance (US$bn) 7. 0 60% 6. 0 50% 5. 0 40% 4. 0 30% 3. 0 20% 2. 0 11 SOURCE: THOMSON REUTERS LPC 4 Q 17 3 Q 17 2 Q 17 1 Q 17 4 Q 16 3 Q 16 2 Q 16 1 Q 16 4 Q 15 3 Q 15 2 Q 15 1 Q 15 4 Q 14 3 Q 14 2 Q 14 1 Q 14 4 Q 13 3 Q 13 2 Q 13 1 Q 13 4 Q 12 3 Q 12 2 Q 12 1 Q 12 4 Q 11 3 Q 11 2 Q 11 1 Q 11 4 Q 10 3 Q 10 2 Q 10 0% 1 Q 10 0. 0 4 Q 09 10% 3 Q 09 1. 0 SBO as % of total LBO 70%

MM WEEKLY - SPONSORED Quarterly average MM LBO size 250. 0 200. 0 150. 0 100. 0 12 SOURCE: THOMSON REUTERS LPC Avg. Loan Size 2017 2016 2015 2014 2013 2012 2011 2010 2009 50. 0 2008 2007 2005 2003 2002 0 2004 Deal Count 2006 50 Avg. MM LBO loan size ($m) 3 Q 17 1 Q 17 3 Q 16 1 Q 16 3 Q 15 1 Q 15 3 Q 14 1 Q 14 3 Q 13 1 Q 13 3 Q 12 1 Q 12 3 Q 11 1 Q 11 3 Q 10 1 Q 10 3 Q 09 1 Q 09 3 Q 08 Annual average MM LBO loan size with total MM LBO count 200 # of LBO deals 1 Q 08 3 Q 07 1 Q 07 3 Q 06 1 Q 06 3 Q 05 0. 0 1 Q 05 Avg. MM LBO size (US$m) LBOs were larger in 2017: The average LBO loan size set a new high at $182 M in 2017; and the number of middle market LBOs was at their highest since 2007

MM WEEKLY - SPONSORED Overall LBO lending of $126 B in 2017 hit its highest level since 2007; share of leveraged lending was down as refis drove bulk of large corporate volume Overall LBO volume and share of leveraged market 225. 0 35% 30% LBO % of Leveraged 175. 0 Middle Market 150. 0 Large Corporate 25% 125. 0 20% 100. 0 15% 75. 0 10% 50. 0 5% 25. 0 13 SOURCE: THOMSON REUTERS LPC 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 0% 2000 0. 0 LBO as % of leveraged issuance LBO issuance (US$bn) 200. 0

MM WEEKLY - SPONSORED Middle market’s LBOs made up 22% of overall LBO volume in 2017 and 57% of the LBO deal count Middle market LBO share of overall market 90% MM LBO as a % of total LBOs 80% 70% 60% MM LBO issuance as % of total 50% MM LBO deal count as % of total 40% 30% 20% 14 SOURCE: THOMSON REUTERS LPC 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 0%

MM WEEKLY - SPONSORED Sponsors favored institutional executions in 2017; issuance of $45 B in 2017 hit a post-crisis high and was $10 B shy of 2007’s high Sponsored institutional middle market issuance 20. 0 80% Institutional volume 70% % of total sponsored Issuance (US$bn) 16. 0 60% 14. 0 50% 12. 0 10. 0 40% 8. 0 30% 6. 0 20% 4. 0 10% 2. 0 15 SOURCE: THOMSON REUTERS LPC 3 Q 17 1 Q 17 3 Q 16 1 Q 16 3 Q 15 1 Q 15 3 Q 14 1 Q 14 3 Q 13 1 Q 13 3 Q 12 1 Q 12 3 Q 11 1 Q 11 3 Q 10 1 Q 10 3 Q 09 1 Q 09 3 Q 08 1 Q 08 3 Q 07 1 Q 07 3 Q 06 1 Q 06 3 Q 05 1 Q 05 3 Q 04 1 Q 04 3 Q 03 1 Q 03 3 Q 02 1 Q 02 3 Q 01 0% 1 Q 01 0. 0 % of MM sponsored issuance 18. 0

MM WEEKLY - SPONSORED Banks remain backstage in sponsored market: Institutional facilities drove 59% of sponsored lending in 4 Q 17 Sponsored issuance breakout by facility type 100% RC % of MM sponsored issuance 90% TL A Institutional Other 80% 70% 60% 50% 40% 30% 20% 10% 2001 2002 2003 2004 2005 2006 2007 2008 2009 1 Q 10 2 Q 10 3 Q 10 4 Q 10 1 Q 11 2 Q 11 3 Q 11 4 Q 11 1 Q 12 2 Q 12 3 Q 12 4 Q 12 1 Q 13 2 Q 13 3 Q 13 4 Q 13 1 Q 14 2 Q 14 3 Q 14 4 Q 14 1 Q 15 2 Q 15 3 Q 15 4 Q 15 1 Q 16 2 Q 16 3 Q 16 4 Q 16 1 Q 17 2 Q 17 3 Q 17 4 Q 17 0% 16 SOURCE: THOMSON REUTERS LPC

MM WEEKLY - SPONSORED Pro rata spreads dropped to their lowest level in 3 years to less than 400 bp in 4 Q 17; institutional spreads ticked up but were still at very low levels in 4 Q 17 • Sponsored institutional spreads averaged 465 bps in 4 Q 17. Sponsored pro-rata spreads dropped to 395 bp in 4 Q 17 Senior spread on middle market sponsored loans 800 Pro-Rata & All Other Institutional Senior Spread (bps) 700 600 500 400 300 1 Q 05 2 Q 05 3 Q 05 4 Q 05 1 Q 06 2 Q 06 3 Q 06 4 Q 06 1 Q 07 2 Q 07 3 Q 07 4 Q 07 1 Q 08 2 Q 08 3 Q 08 4 Q 08 1 Q 09 2 Q 09 3 Q 09 4 Q 09 1 Q 10 2 Q 10 3 Q 10 4 Q 10 1 Q 11 2 Q 11 3 Q 11 4 Q 11 1 Q 12 2 Q 12 3 Q 12 4 Q 12 1 Q 13 2 Q 13 3 Q 13 4 Q 13 1 Q 14 2 Q 14 3 Q 14 4 Q 14 1 Q 15 2 Q 15 3 Q 15 4 Q 15 1 Q 16 2 Q 16 3 Q 16 4 Q 16 1 Q 17 2 Q 17 3 Q 17 4 Q 17 200 17 SOURCE: THOMSON REUTERS LPC

MM WEEKLY - SPONSORED Spreads on traditional MM deals averaged only 435 bp in 4 Q 17, the tightest level tracked post credit crisis; Large MM spreads averaged 438 bp in 4 Q 17 Senior spread on sponsored TLs (pro-rata & institutional): trad. MM vs. large MM 650 625 Traditional MM Large MM Senior Spread (bps) 600 575 550 525 500 475 450 425 *excludes unitranches beginning 2016 18 SOURCE: THOMSON REUTERS LPC 4 Q 17 3 Q 17 2 Q 17 1 Q 17 4 Q 16 3 Q 16 2 Q 16 1 Q 16 4 Q 15 3 Q 15 2 Q 15 1 Q 15 4 Q 14 3 Q 14 2 Q 14 1 Q 14 4 Q 13 3 Q 13 2 Q 13 1 Q 13 4 Q 12 3 Q 12 2 Q 12 1 Q 12 4 Q 11 3 Q 11 2 Q 11 1 Q 11 4 Q 10 3 Q 10 2 Q 10 1 Q 10 4 Q 09 3 Q 09 2 Q 09 1 Q 09 400

MM WEEKLY - SPONSORED Leverage remained very aggressive on MM institutional buyout deals at 4. 81 x senior by 5. 86 x total in 4 Q 17; for 2017 leverage is the loosest on record at almost 6 x *1 Q 09 -3 Q 09 did not have enough deals to show an accurate quarterly figure Average quarterly EBITDA ranges between $40 -$60 M in any given quarter 19 SOURCE: THOMSON REUTERS LPC **Debt to EBITDA data for middle market institutional LBOs 2017 2016 2015 2014 2013 2012 Junior Debt to EBITDA 2010 2009 2008 2007 2006 2005 1 st Lien Debt to EBITDA 2011 6. 5 x 6. 0 x 5. 5 x 5. 0 x 4. 5 x 4. 0 x 3. 5 x 3. 0 x 2. 5 x 2. 0 x 1. 5 x 1. 0 x 0. 5 x 0. 0 x 2004 Junior Debt to EBITDA 2003 1 st Lien Debt to EBITDA Annual debt to EBITDA for MM institutional LBOs** Debt to EBITDA 7. 0 x 6. 5 x 6. 0 x 5. 5 x 5. 0 x 4. 5 x 4. 0 x 3. 5 x 3. 0 x 2. 5 x 2. 0 x 1. 5 x 1. 0 x 0. 5 x 0. 0 x 1 Q 03 4 Q 03 3 Q 04 2 Q 05 1 Q 06 4 Q 06 3 Q 07 2 Q 08 1 Q 09* 4 Q 09 3 Q 10 2 Q 11 1 Q 12 4 Q 12 3 Q 13 2 Q 14 1 Q 15 4 Q 15 3 Q 16 2 Q 17 Debt to EBITDA for MM institutional LBOs**

MM WEEKLY - SPONSORED Leverage gap between large corp. and middle market narrowed in 2017; while leverage widened in both markets, equity checks declined for large corp. LBOs Equity contributions: MM vs BSL LBOs* Debt to EBITDA: MM vs. BSL LBOs* 55% 7. 5 x 20 SOURCE: THOMSON REUTERS LPC 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 20% 2006 3. 0 x 2005 25% 2004 3. 5 x 2008 4. 0 x 30% 2007 4. 5 x 35% 2006 5. 0 x 40% 2005 5. 5 x 45% 2004 Equity Contributions 6. 0 x *Debt to EBITDA data for middle market institutional LBOs BSL 50% 6. 5 x 2003 LBO Debt to EBITDA (x) MM BSL 2003 MM 7. 0 x

MM WEEKLY - SPONSORED Half of institutional MM LBOs deals were levered 6 x and greater in 2017; those levered 7 x or greater took 15% of the total – both the highest on record Share of middle market LBO deals levered greater than or equal to 6 x and 7 x 60% Leverage => 6 x Share of MM LBO deals 50% Leverage => 7 x 40% 30% 20% 10% 21 SOURCE: THOMSON REUTERS LPC 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 0%

MM WEEKLY - SPONSORED U. S. new issue CLOs reached US$117 bn in 2017 with an additional US$165 bn in CLO refis and resets Monthly U. S. CLO Issuance Although loan fund outflows have been more frequent since the fall, US$12. 7 bn flowed into mutual funds in 2017. Separate managed account money grew as pensions, endowments and family offices along with insurance companies, and sovereign wealth funds allocated money to this asset class. Few would argue that 2017 was the year of the CLO with over a quarter of a trillion dollars in activity. New CLO issuance reached US$117 bn in 2017, jumping 62% over the prior year. In addition, US$164. 8 bn came in the form of refinancings and resets with US$103. 8 bn in refinancings and US$61 bn in resets. With new issuers in the mix and a growing bid from Asian investors, deal activity was unprecedented. Although AAA spreads on new CLO liabilities reached tights in the low 100 bp context for select managers, primary market loan spreads also tightened as issuers took advantage of favorable market conditions, to reprice their loans. Looking at 2018, “We haven’t seen times where it (primary market spread on higher quality loans) gets much tighter, ” said a portfolio manager. “The market may prove me wrong on that score. I am not applying much judgment just looking at historically what has been the case. Typically when you get to these kind of levels, you see investors struggling for yield and weaker credits getting bid up heavily because people are stretching up the risk curve. ” 40. 0 35. 0 New Issue Resets Refinancings Issuance ($b) 30. 0 25. 0 20. 0 15. 0 10. 0 5. 0 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 0. 0 22 SOURCE: THOMSON REUTERS LPC

MM WEEKLY - SPONSORED Middle market pipeline starting to slowly build, increased to US$2. 53 B this week, up from $1. 45 B last week; institutional pipeline grows to US$12. 44 B Institutional loan pipeline (overall market) Middle market pipeline (beginning Sept. 2017) 10. 0 9. 0 120. 0 2017 2018 110. 0 2016 2017 2018 100. 0 8. 0 90. 0 7. 0 80. 0 6. 0 ($ Bils. ) 2015 5. 0 70. 0 60. 0 50. 0 40. 0 30. 0 20. 0 10. 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 23 SOURCE: THOMSON REUTERS LPC Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

MM WEEKLY - SPONSORED Middle market deals currently tracked in the pipeline Borrower Industry Moody's S&P Bank Loan Lead Left Launch Date Purpose Tranche Type Tranche Amount (US$m) Royal Bank of Canada 08 -Jan-2018 General Purpose 08 -Jan-2018 Takeover Delay Draw Term Loan B Term Loan B Morgan Stanley Bank 06 -Dec-2017 General Purpose Term Loan B Manufacturing BNP Paribas BIBF 09 -Jan-2018 Leveraged Buyout Revolver/ 35 Laces Group Inc Manufacturing BNP Paribas BIBF 09 -Jan-2018 Leveraged Buyout Term Loan B 186 Tacala LLC Restaurants KKR Capital Markets 18 -Jan-2018 Dividend Recap. Term Loan 115 Tacala LLC Restaurants KKR Capital Markets 18 -Jan-2018 Dividend Recap. Term Loan B 335 Woodford Express LLC Oil and Gas Morgan Stanley Bank 04 -Jan-2018 Dividend Recap. Term Loan B 364 Woodford Express LLC Oil and Gas Morgan Stanley Bank 04 -Jan-2018 Dividend Recapi. 25 Bay. Mark Health Services Inc Healthcare Capital One Bank Eagle. View Technology Corp Technology Revolver Delay Draw Term Loan Bay. Mark Health Services Inc Healthcare Eagle. View Technology Corp Technology B 3 B Morgan Stanley Hargray Communications Group Telecom B 2 B+ Credit Suisse AG Henry Co Construction Hi-Crush Partners Mining Laces Group Inc Hargray Communications Group Inc Telecomm Capital One Bank B 3 B 2 B- B+ B 3 B Morgan Stanley B 2 B+ Credit Suisse AG Acquisition 09 -Jan-2018 General Purpose Margin (bps) (OID) 55 LIBOR + 525 334. 1 LIBOR + 375 450 LIBOR + 275 100 316. 8 115 LIBOR + 400 99. 75 200 LIBOR + 400 99 LIBOR + 525 99 LIBOR + 450 99 55 LIBOR + 525 334. 1 LIBOR + 375 450 LIBOR + 275 100 Henry Co Construction Royal Bank of Canada 08 -Jan-2018 General Purpose Term Loan B 316. 8 LIBOR + 400 99. 75 Henry Co Construction Royal Bank of Canada 08 -Jan-2018 Takeover Term Loan B 115 LIBOR + 400 99. 75 24 SOURCE: THOMSON REUTERS LPC

MM WEEKLY - SPONSORED Recent Loan. Connector Middle Market Highlights For more details, check out www. loanconnector. com • Twin Brook arranges US$50 m financing for Atria Wealth, leads 3 other deals – Finance company Twin Brook Capital Partners provided US$50 m in acquisition financing to Atria Wealth Solutions as well as debt financing for a trio of other deals, sources said. – Twin Brook served as sole lead arranger and administrative agent on the Atria transaction. Proceeds were used to fund Lee Equity-backed Atria's purchase of CUSO Financial Services and Sorrento Pacific Financial. – Twin Brook, the middle market direct lending subsidiary of Angelo, Gordon & Co, also served as sole lead arranger and administrative agent for financing backing an add-on acquisition by General Tools. Highroad Capital Partners is the financial sponsor. – Twin Brook, separately, was sole lead arranger and administrative agent for the financing backing Incline Equity's leveraged buyout of PTI. – In addition, the lender served as administrative agent on a recapitalization of QSI Facilities, which is backed by Gridiron Capital. – Twin Brook is focused on providing cash-flow based financing to the middle market private equity community for leveraged buyouts, recapitalizations, add-on acquisitions and growth capital. – The firm typically lends to companies that have between US$3 m and US$50 m of Ebitda, with an emphasis on borrowers with US$25 m or less in Ebitda, and targets senior financing opportunities up to US$200 m with hold sizes ranging from US$25 m to US$100 m. • Ally Corporate Finance and Ares Capital co-lead senior credit facility for Upstream Rehabilitation – Ally Corporate Finance and Ares Capital were Co-Lead Arrangers on the senior credit facility supporting Upstream Rehabilitation Inc. ’s acquisition of Drayer Physical Therapy. – Upstream is a portfolio company of Revelstoke Capital Partners while Drayer Physical Therapy was a portfolio company of Goldman Sachs Merchant Banking Division. No further details of the financing were available – Upstream is a provider of outpatient rehabilitation services, including free-standing physical therapy clinics, outpatient rehabilitation management services and a member network of rehabilitation service providers. With corporate offices in Birmingham, Alabama, Upstream currently operates more than 550 owned and managed clinics across 27 states. – Headquartered in Hummelstown, PA, Drayer Physical Therapy Institute is a leading owner and operator of outpatient physical therapy clinics primarily focused on treating sports-related injuries and orthopedic disorders. DPTI’s strategy is to operate its own clinics and develop strong relationships with referring physicians through high quality patient care. The company currently operates more than 160 owned and managed clinics in 15 states. 25 SOURCE: THOMSON REUTERS LPC

MM WEEKLY - SPONSORED Recent Loan. Connector Middle Market Highlights For more details, check out www. loanconnector. com • Barings announces final close of North American Private Loan Fund – Global asset management firm Barings announced on Wednesday the final close of its US$1. 85 bn North American Private Loan Fund. – The North American Private Loan Fund will invest primarily in private senior secured floating-rate corporate loans issued to middle market companies based in the U. S. and Canada. – “Our flagship North American Private Loan Fund will enhance Barings’ ability to meet the needs of investors, borrowers and the private equity sponsors that are key partners in our private credit business, ” Eric Lloyd, managing director and head of Barings’ Global Private Finance Group, said in a statement. – The close comes after an eight-month fundraising effort that secured commitments from 45 investors representing 13 different countries, the statement said. • Spectrum Plastics launches US$680 m acquisition credit – Specialty plastics manufacturer Spectrum Plastics Group on Tuesday launched a US$680 m acquisition credit facility backing the company's sale to AEA Investors from Kohlberg & Co, sources said. – Antares Capital leads the transaction. Key. Bank, Bank of Ireland Citizens have signed on as joint lead arrangers. – The new funding includes a US$45 m, five-year revolver, a US$430 m, seven-year covenant-lite term loan, a US$45 m, seven-year delayed draw term loan and a US$160 m, eightyear second-lien term loan. – Pricing on the first-lien term loan is guided at 350 bp over Libor with a 1% floor. The loan is offered at a 99. 5 original issue discount and has 101 soft call protection for six months. – The delayed draw term loan has a two year draw period and pays a ticking fee of 1% for a period of six months. After that the loan pays 50% of the applicable margin during months 7 -12 and 100% thereafter. – The second-lien term loan is guided at 750 bp over Libor with a 1% floor and a discount of 99. The loan is callable at 102 in year one, then at 101 in year two. – Lender commitments are due January 24. – Spectrum was formed in March 2017 after the combination of Kohlberg portfolio company PPC Industries Inc with Pexco LLC. – Atlanta-based Spectrum designs and manufactures highly-engineered polymer-based products used in medical and other specialty end-markets. 26 SOURCE: THOMSON REUTERS LPC

MM WEEKLY - SPONSORED Recent Loan. Connector Middle Market Highlights For more details, check out www. loanconnector. com • Ping Identity sets price talk on US$240 m refinancing loan – Cyber security software firm Ping Identity Corp has circulated guidance on the US$240 m term loan B it began shopping on Thursday to back a refinancing, sources said. – Goldman Sachs leads with Antares Capital, Macquarie Group and VCO Capital Markets. Commitments are due January 23. – Price talk on the seven-year term loan is in the 425 bp-450 bp range with a 1% floor and 99. 5 discount. – The loan will amortize at 1% per year. Lenders are offered six months of soft call protection at 101. – The financing, which marks the company's debut in the institutional loan market, includes a US$25 m revolving credit facility. – Proceeds will used to refinance existing debt, pay transaction fees and increase cash reserves, according to Moody's Investors Service. Ratings are B 3/B- corporate and facility. • Flexera preps US$675 m credit facility – Software developer Flexera will launch at a January 16 bank meeting a new US$675 m first- and second-lien credit facility, sources said. Jefferies is arranging the transaction. – Proceeds from the credit, together with a new cash equity investment from TA Associates, will be used to refinance existing debt and fund the purchase of a minority stake in the company by TA, the sources said. – Flexera announced the new investment by TA in on December 19, 2017 in a statement and said TA is acquiring equity from existing investors. The transaction is expected to close in February 2018. – Ontario Teachers’ Pension Plan will remain the majority owner. The firm bought a majority stake in the company in October 2011. • CLO: NXT Capital CLO 2015 -1 Refinancing Priced – New Issue CLO Refi: NXT Capital CLO 2015 -1, LLC , Collateral Manager: NXT Capital Investment Advisers, LLC, Sole Bookrunner: Wells Fargo Securities – Class Par($MM) M/S WAL DM CPN $PRICE – A 219. 500 Aaa/AAA 2. 33 115 L+115 100. 00000 – B 33. 000 Aa 1/AA 3. 64 160 L+160 100. 00000 – C 39. 000 A 2/- 4. 25 220 L+220 100. 00000 – D 29. 500 Baa 3/- 4. 93 330 L+330 100. 00000 – Reinvestment Period: 1. 25 Years, Target Settlement: 1/22/2018 27 SOURCE: THOMSON REUTERS LPC

MM WEEKLY - SPONSORED Additional headlines this week For more details, check out www. loanconnector. com • Investors pull US$12. 4 M from loan mutual funds and placed US$2. 7 B into high yield bond funds for the week ended January 10 th • US Anesthesia adds repricing to add-on deal • Citigroup retains crown as top US CLO arranger in 2017 • Software maker SS&C to buy DST Systems in US$5. 4 billion deal; two banks provide committed financing • WEX upsizes add-on to US$150 m, sets terms on repricing • Digicel launches US$955 m repricing • Infoblox sets final terms on US$497. 5 m repricing • Boardriders back Billabong acquisition with US$600 m of loans • Eagle. View pursues lower pricing on US$334 m term loan • St. George’s University moves up repricing commitment deadline • KKR’s Unilever spreads buy backed with euro 5. 65 bn-equiv debt • Xperi seeks to refinance term loan • Virtu pays down loan to US$624 m • Three banks provide financing for Safe Fleet LBO • Henry Co sets guidance on repricing, US$115 m add-on • Max. Linear pulls US$355 m loan repricing 28 SOURCE: THOMSON REUTERS LPC

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