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Page 2

ANALYTICS Table of Contents

Introduction ………………………………………………………………………………………………… …..……...4 Highlights

Sector Statistics ……………………………………………………………………………….……………… …………..6 Bond Issuance by Industry and Per Year

Industry and Country Overview ………………………………………………………………………………....…………… …………..7 Volume and Value of Bond Issues by Industry and Country

Market Overview ………………………………………………………………………………………………… …………..8 Monthly Issuance by Volume and Value Withdrawn Issuance

Maturity and Seniority ………………………………………………………………………………………………… …………..9 Volume and Value of Issuance by Maturity Maturity and Seniority Profiles

Use of Proceeds and Currency ……………………………………………………………………………………………….... …………10 Use of Proceeds Issuance by Currency

Yields and Ratings ...... 11 Bond Yield To Maturity vs. Crossover Issuance by Interest Rate, Rating and Seniority

Debutant Issuers ………………………………………………………………………………………………... …………12 Debutant Issuance Debutant Use of Proceeds

Moody’s and S&P Issue Ratings ………………………………………………………………………………………………… …………13 Issuance by Rating Category and Rating Agency Moody’s and S&P Rating Statistics Issuance by YTM, Rating and Seniority

Underwriter Bank League Table ………………………………………………………………………………………………… …………15 League Table of Bond Underwriters by Market Share, Volume and Value

Outstanding High Yield Bonds ………………………………………………………………………………………………… …………16 Amount Outstanding by Volume, Value and Currency Amount Outstanding by Sector and Rating

Spread Analysis ………………………………………………………………………………………………… …………18 Initial Spreads vs. Credit Rating — First and Second Quarters

Appendices ………………………………………………………………………………………………… …………19 Debtwire Europe High Yield Issuance & Pipeline Criteria Full List of High Yield Issuance

Page 3

ANALYTICS Highlights

HY 2012 European High Yield Market Highlights

Europe’s primary high-yield bond market continued to be impacted by the Amount in EURm Number of deals sovereign debt crisis in the Eurozone in the first half of 2012. The crisis appeared 40,000 120 to recede in January after the European Central Bank injected liquidity into the region’s banks, and the market opened strongly. However, elections in France and Greece and

30,000 90 the deteriorating health of Spain’s banks generated intense volatility and significantly reduced the volume of issuance by the end of the period.

20,000 60 Debtwire Europe covered 73 high yield bond issues with a total value of EUR 25.56bn from 47 companies during the first half. Issuance was lower than in 1H11, when

10,000 30 companies raised EUR 37.72bn from 108 high yield bonds, but was a significant improvement on the second half of 2011, when EUR 10.6bn of bonds came to market.

0 0 HY11 HY12 Issuance window opens wide in February...

New issuance peaked in February with 20 deals worth a total EUR 7.44bn brought to market. This followed EUR 5.34bn of issuance via 15 bonds in January, and companies issued a further EUR 5.86bn of notes in March. The glut of deals put an end to the slump at the end of 2011, when the market closed for weeks at a time. Refinance debt Acquisition GCP Dividend and Securitisation

100% ...but slams shut again by June 90% 80% However, only eight issues priced in April and nine in May, as investors fretted over the 70% Eurozone’s lack of progress in resolving the challenges it faced. Issuance declined 60% further in June, with only EUR 1.91bn raised via six bonds, reflecting growing unease 50% over a potential Eurozone break up or Greek exit from the currency union. 40% 30% Three issuers withdrew their bonds in the first half as a result of the heightened 20% volatility and weak demand, an increase from one bond in the prior year. The bonds 10% were pulled in March, April and May, when conditions became more difficult. 0% HY11 HY12 Bond-backed M&A at lowest ebb since 2009; companies refinance debt

High yield bond issuers used only EUR 3.29bn of new debt or 13% of issuance to fund acquisitions in the first half of 2012, the lowest proportion since 2009 and a significant fall from EUR 6.97bn, or 18% of issuance, used to finance M&A deals a year earlier. EUR USD GBP Other

100% Three quarters of bond issuance, or a total of EUR 19.18bn, was used to refinance 90% outstanding debt in the first half. Of this, EUR 14.9bn or 58% went to repay loans, while 80% another EUR 4.27bn, or 17%, refinanced bonds. Companies used 11% (EUR 2.75bn) 70% of all issuance for general corporate purposes in 1H12, up from just 2% a year earlier. 60% 50% US funds soak up dollar bonds, but sterling issuance declines 40% 30% Companies issued more bonds denominated in US dollars in the first half compared 20% with a year ago, in response to robust demand from US funds and lower borrowing 10% costs for dollar issuance. Dollar bonds represented 43% of issuance, up from 28% in 0% HY11 HY12 1H11, as several companies upsized the dollar tranche of a multi-currency bond issue.

In contrast, sterling notes represented a smaller proportion of high-yield issuance in the first half than a year ago, falling to 7% from 22% in 1H11. Euro-denominated bonds accounted for 48% of issuance, down from 49% in 1H11, and further evidence of a long-term downward trend.

Spain Northern European companies busiest in the primary market (€1.54bn) Other USA (€1.6bn) (€5.04bn) German and UK-based companies brought the highest number and value of bonds to Netherlands (€1.84bn) market during the period. UK companies such as carmaker Jaguar Land Rover, cable Switzerland (€2.14bn) group Virgin Media and holiday parks operator Center Parcs Group issued 13 bonds worth a total EUR 5.03bn, while German groups including auto-parts maker Schaeffler and medical care provider Fresenius issued 12 notes worth a total of EUR 5.36bn. Germany France (€5.36bn) (€3.02bn) French high-yield issuers were also active in the first half and brought about 12% (EUR 3.02bn) of all issuance to market during the period. UK (€5.03bn)

Page 4

ANALYTICS Highlights

HY 2012 European High Yield Market Highlights

Economic headwinds blow out subordinated notes in favour of secured debt

Only one subordinated bond came to market in the first half, as the poor macro- economic environment impacted issuers’ performance and reduced investor appetite for riskier low-ranked debt. Subordinated debt represented just 1% of all issuance, Senior Senior down from 3% in 1H11 when five subordinated issues were priced. The bond issued Unsecured Secured 44% 55% was the EUR 324m 11.5% note due in 2017 from Europcar Groupe.

Instead, more than half of all issuance was senior secured, as companies raised a total of EUR 13.92bn through 40 such bonds. Another EUR 11.31bn was issued via 32 issues of senior unsecured notes, which represented 44% of total issuance, up from 38% in 1H11.

Risk-off mode prompts a rise in shorter-term maturities Senior Subordinated 1% The market experienced a decline in long-dated bond issuance and a rise in shorter maturities during the first half of 2012, a further indication of the risk aversion characterising the market. Investors favoured shorter tenors due to their lower risk, while issuers sought to limit their exposure to the high coupons that investors required.

Only 18% of bonds were issued with maturities of eight years or longer, down from 39% in the first half of 2011, while 28% of notes issued matured in five years or less, up from only 9.5% a year earlier. Seven-year notes remained the most popular maturity for issuance, as in previous years, but declined to EUR 10.08bn raised via 29 issues, from EUR 17.42bn in 1H11.

The proportion of floating rate notes (FRN) increased compared with the previous year, but was still low compared with pre-crisis levels in 2006 and 2007. Five FRNs were brought to market with a total value of EUR 1.32bn, and paid between Euribor+525bps CCC (8) NR (2) and E+650bps.

Uptick in high-quality bonds as challenging conditions put off weaker credits B (34) The proportion of bond issuance rated at the high end of the high-yield spectrum increased in the first half of 2012 from a year earlier, signalling that market conditions BB (28) were making it harder for weaker issuers to come to market. About 38% of bonds were assigned a high-quality ‘BB’ category rating by Moody’s or Standard & Poor’s (between ‘BB+’ and ‘BB–’ for S&P and ‘Ba1’ and ‘Ba3’ for Moody’s), up from 22% in the first half of 2011.

New bonds rated in the ‘B’ category accounted for 46% of all issuance, lower than in previous years, while the proportion of new bonds assigned a low ‘CCC’-category rating was 11% of the total, down from 13% a year earlier.

Deutsche Bank takes top market share of high yield bond underwriting

Deutsche Bank was ranked first in the Debtwire Analytics league table of underwriters on European high yield bond issues in 1H12, with a 9.7% share of the market. The bank worked on 37 bond issues during the period with a total value of EUR 2.49bn, and improved its ranking from second a year earlier.

Morgan Stanley and Barclays Capital were notable movers up in the ranking compared with the previous year. However, banks such as Credit Suisse, BNP Paribas, Bank of America Merrill Lynch and Societe Generale fell in the ranking as they worked on fewer deals during the period.

This report presents information and analysis on the European high yield bond market in the first six months of 2012.

Page 5

ANALYTICS Sector Statistics

European High Yield Bond Issuance by Industry

Amount Average Average Average Maturity Industry No. of Issuers No. of bonds Issued (EURm) Coupon OID YTM (mode) Automotive 5 10 4,778 7.85% 100.32 7.76% 2017

Cable 6 6 2,772 8.10% 98.82 8.93% 2022 Chemicals 3 5 2,656 7.81% 99.94 7.83% 2019 Construction & Homebuilding 2 2 600 5.81% 100.00 5.81% 2016 Energy Services 4 5 1,683 11.00% 100.28 10.58% 2017 Financial Services 1 1 239 10.75% 100.00 10.75% 2019 Healthcare 2 6 2,575 7.00% 99.58 7.08% 2019 Leisure 4 5 1,546 9.35% 98.24 9.85% 2019 Manufacturing 1 1 200 5.00% 101.25 4.61% 2015 Metals & Mining 2 2 558 8.81% 98.48 9.13% 2017 Packaging 1 2 326 8.25% 98.42 8.50% 2017 Paper & Forest Products 3 5 1,644 7.63% 99.76 7.63% 2019 Services 5 8 2,252 7.26% 96.05 8.02% 2018 Technology 1 2 1,015 9.69% 100.00 9.69% 2019 Telecommunications 4 8 1,833 7.65% 96.54 8.53% 2018 Transportation 3 5 881 9.67% 100.19 9.62% 2017

TOTAL 47 73 25,557 8.17% 98.89 8.41% 2019

▪ The average yield to maturity (YTM) during 1H12 for euro-denominated notes due 2019 was 8.41% vs. 8.20% in 1H11.

▪ The most active industries for issuance were automotive, with 10 issues worth a total EUR 4.78bn, and the services and telecommunications industries, with eight issues each that totalled EUR 2.25bn and EUR 1.83bn, respectively. By value, the cable and chemicals industries were the next-biggest issuers, at EUR 2.77bn and EUR 2.66bn, respectively.

▪ The range for coupon, original issuer discount (OID) and YTM for deals brought in 1H12 were:

Coupon: 4.00% - 12.75%

OID: 83.19 - 108.00

YTM: 4.00% - 14.00%

▪ Five floating rate notes were issued in 1H12.

European High Yield Bond Issuance Per Year

Amount in EURm Number of deals

70,000 140

60,000 120

50,000 100

40,000 80

30,000 60

20,000 40

10,000 20

0 0 2005 2006 2007 2009 2010 2011 HY11 HY12

Page 6

ANALYTICS Industry & Country Overview

Volume of High Yield Bond Issues by Industry and Country

Automotive 10

Telecommunications 8

Services 8

Healthcare 6 13

Cable 6 12

Transportation 5 10 Paper & Forest Products 5

Leisure 5 8

Energy Services 5

Chemicals 5 5

Technology 2 4 4

3 3 3 Packaging 2 2 2 Metals & Mining 2 1 1 1 1

Construction & Homebuilding 2

Financial Services 1

Manufacturing 1

Value of High Yield Bond Issues by Industry and Country (EURm)

Automotive 4,778

Cable 2,772

Chemicals 2,656

Healthcare 2,575 5,363 Services 2,252 5,032

Telecommunications 1,833

Energy Services 1,683

Paper & Forest Products 1,644 3,018 Leisure 1,546

Technology 1,015 2,137 1,836 Transportation 881 1,536 1,597 1,354 Construction & Homebuilding 600 826 872 Metals & Mining 558 500 554 310 171 200 251 Packaging 326

Financial Services 239

Manufacturing 200

Page 7

ANALYTICS Market Overview

Monthly Issuance by Volume and Value (EURm)

Amount in EURm Number of deals 20 7,000 21

6,000 18

15 15

5,000 15

4,000 12 7,437 8 9 3,000 5,855 9 5,338 6 2,000 6

2,752 2,269 1,000 1,906 3

0 0 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12

Europe’s high yield bond market opened on a bullish note in January as the Eurozone sovereign debt crisis appeared to recede, causing an uptick in risk appetite that put an end to the slump in issuance experienced at the end of 2011. Fifteen deals came to market in January, raising a total of EUR 5.34bn, followed by another 20 bonds worth EUR 7.44bn in February, when the market peaked. Issuance levels remained robust in March, with EUR 5.86bn of bonds brought to market through 15 issues.

However, issuers and investors became more wary at the start of the second quarter as the focus turned to the upcoming presidential election in France as well as a general election in Greece, and the market began to slow. Eight high-yield bond issues worth EUR 2.75bn priced in April, when concerns re-emerged over sovereign borrowing costs in weaker Eurozone economies, and the Dutch government collapsed in disagreement over the national budget.

The downward trend in issuance became more pronounced in May and June as attention turned to the worsening condition of Spain’s banks, and preparations for a second Greek election after an inconclusive outcome to the first. Nine bonds were issued in May, raised a total EUR 2.27bn, and issuance fell to six issues in June that raised EUR 1.91bn as confidence was sapped by growing fears of a potential Eurozone break up or Greek exit from the currency union.

Withdrawn issuance

Rating (S&P / Company Date Currency Seniority Maturity Industry Country Purpose Moodys) Intermediate Capital Group Mar-12 GBP Senior Unsecured 2017 Financial Services UK BBB- / NR

Ascometal SAS Apr-12 EUR Senior Secured 2020 Manufacturing France Refinance Debt B- / B3

Construction & Monier Group GmbH May-12 EUR Senior Secured 2019 Germany Refinance Debt B- / NR Homebuilding

Volatility in the market and falling demand for high-risk paper resulted in three bond issues being withdrawn in the first half of 2012, a significant increase from just one bond pulled in 1H11.

Intermediate Capital Group, the UK-based mezzanine finance provider, abandoned plans to issue a sterling-denominated senior unsecured 2017 bond in March 2012 due to poor market conditions, but indicated that it plans to return to the market when the environment improves.

French steelmaker Ascometal pulled its euro-denominated eight year senior secured notes in April, despite improving the bond’s security and tightening debt-incurrence tests to sweeten the offering.

In May, German roofing materials manufacturer Monier also postponed plans to issue a seven-year EUR 250m senior secured bond. The group withdrew the deal five days after closing books as volatility in the market increased, and agreed an amend and extend on its loans instead.

Page 8

ANALYTICS Maturity & Seniority

Volume of High Yield Bond Issues by Maturity Value of High Yield Bond Issues by Maturity (EURm)

HY12 HY12

35 12,000

30 29 10,080 10,000

25 8,000 20 17 6,045 6,000 15 11 4,000 3,611 10 9 3,110

1,489 5 3 2,000 2 2 782 440 0 0 1yrs 2yrs 3yrs 4yrs 5yrs 6yrs 7yrs 8yrs 9yrs 10yrs 1yrs 2yrs 3yrs 4yrs 5yrs 6yrs 7yrs 8yrs 9yrs 10yrs

Maturity Profile

<5yrs 5yrs 6yrs 7yrs 8yrs >8yrs A larger proportion of new bond issuance in the first half of 100% 2012 had shorter maturities than in 2011 or 2010. Five-year bonds represented 24% of all issuance, raising EUR 6.05bn via 90% 17 issues. This was a significant increase on 1H11, when 12 80% issues of five-year bonds came to market, raising EUR 3.37bn (9% of total 1H11 issuance). 70%

60% Seven-year notes were the most popular tenor for issuance in 1H12, continuing the trend experienced in 2011 and 2010. 50% N/A Companies raised EUR 10.08bn through 29 seven-year issues, 40% (39% of total issuance). However, this was lower than in 1H11,

30% when EUR 17.4bn was issued, representing 46% of issuance.

20% Fewer bonds with eight-year or longer maturities were issued in

10% 1H12 than in previous years. Only EUR 4.6bn was raised via 12 issues (18% of total issuance) at these tenors, less than in 0% FY05 FY06 FY07 FY08 FY09 FY10 FY11 HY12 1H11, when EUR 14.56bn was raised.

Seniority Profile

Senior Secured Senior Unsecured Subordinated HY 2012

100% Senior 90% Unsecured Senior 44% Secured 55% 80%

70%

60%

50% N/A 40%

30%

20% Senior Subordinated 10% 1%

0% FY05 FY06 FY07 FY08 FY09 FY10 FY11 HY12

Companies issued senior secured and unsecured debt in 1H12 in similar proportions as in the previous three years. Issuers raised EUR 13.92bn from 40 senior secured bonds, equivalent to 54% of all issuance by value (1H11: 55%), and 32 senior unsecured bonds, which raised EUR 11.31bn (44% of total value, up from 38% in 1H11).

Europcar Groupe was the only company to issue a subordinated bond in 1H12, representing 1% of all issuance in the period. This was a decline from five subordinated notes issued in 1H11, and about 3% of issuance by value in previous years. Europcar issued a EUR 324m 11.5% note due in 2017. Page 9

ANALYTICS Use of Proceeds & Currency

Use of Proceeds

Refinance loans Refinance bonds Acquisition General Corporate Purposes Dividend Share repurchase & Securitisation HY 2012 100% General 90% Securitisation Corporate 1% Purposes 11% 80% Refinance loans 58% Acquisition 70% 13% 60%

50% N/A

40%

30%

20% Refinance bonds 10% 17% 0% FY05 FY06 FY07 FY08 FY09 FY10 FY11 HY12

Three quarters of the proceeds of high-yield bond issuance in 1H12 were used by companies to refinance outstanding debt, reaffirming the trend experienced in the past three years. Issuers raised EUR 19.18bn of new bonds for refinancing (75% of total issuance by value), through 50 issues out of the total 73 during the period. Companies also obtained EUR 22.8bn of new leveraged loans in 1H12 to refinance outstanding bonds and loans, a significant increase from EUR 6.26bn in 1H11.

More than half of bond issuance in 1H12 (58%) was used to refinance loans, in line with the past three years, although the total value declined to EUR 14.9bn from EUR 22.95bn in 1H11. A further 17% of total issuance (EUR 4.27bn) was used to refinance outstanding bonds.

Issuers raised EUR 3.29bn in the high yield market to finance acquisitions in 1H12 (13% of total value), a significant decline from EUR 6.97bn (18%) in 1H11. It was the lowest proportion used for M&A since 2009 (full year), when just 12% of bonds funded dealmaking. The companies that tapped the bond market for M&A in 1H12 were Orange Switzerland, which financed its takeover by Apax Partners with three EUR 710m- equivalent bonds; and Four Seasons Health Care, which issued two notes totalling GBP 525m to fund its leveraged buyout by Terra Firma. In contrast, proceeds used to fund general corporate purposes rose to 11% (EUR 2.75bn) of total issuance in 1H12, from just 2% in 1H11.

Center Parcs UK issued the only notes used for securitisation, pricing a GBP 280m 11.625% senior secured bond due 2018 in February. Issuance by Currency

EUR USD GBP Other HY 2012 100% CHF 90% NOK denominated denominated 2% 1% GBP 80% denominated 7% 70% EUR denominated 60% 47% N/A 50%

40%

30%

20%

10% USD denominated 0% 43% FY05 FY06 FY07 FY08 FY09 FY10 FY11 HY12 Companies shifted their issuance currency towards US dollars in 1H12 as a result of robust demand for high yield paper in the US, and the proportion of bonds denominated in USD rose to 43% of the total issued, from 28% in 1H11.

Euro-denominated debt accounted for 47% of high yield issuance by value in 1H12, a fall from 49% in 1H11 and in line with years of previous declines. However, sterling-denominated notes accounted for a significantly smaller proportion of issuance in the first half of 2012 than the previous year, falling to 7% from 22% in 1H11. There were five sterling-denominated high yield bonds issued in the first half of 2012, with a value of EUR 1.83bn. Three of these issues were priced in the first quarter, and in the second quarter Four Seasons Healthcare issued two notes with a total value of GBP 525m in June.

Two thirds of the US dollar issuance (20 of 30 bonds; total USD 14.32bn) were brought to market in the first quarter. They included Fresenius Medical Care’s two issues worth USD 1.5bn; Cableuropa’s USD 1bn 8.875% note; and a USD 1bn 8.375% bond by Ineos Group. In 2Q12, USD issues totalled EUR 2.96bn, and included Lawson Software’s USD 1.015bn 9.375% notes due 2019; a USD 775m-equivalent issue by Vantage Drilling Company, and USD 775m 7.5% notes due 2020 issued by Ineos.

Three bonds were issued in alternative currencies during the period. In January, Norwegian group Teekay Offshore Partners placed a NOK 600m senior secured 2017 bond, and in February Orange Switzerland issued a CHF 450m 6.75% senior secured note due 2019. In May, Teekay LNG Partners issued a NOK 600m senior unsecured 2017 note. Page 10

ANALYTICS Yields & Ratings

Bond Yield To Maturity vs. Crossover

Sen. Secured Sen. Unsecured Itraxx

14%

12%

10%

0% Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12

The average yield to maturity for issuance in 1H12 was 8.41%. Europcar had the highest YTM, of 14%, on its EUR 324m 11.5% senior subordinated notes due 2017, while HeidelbergCement had the lowest, of 4%, on its EUR 300m 4% four-year senior unsecured notes.

Bond Issuance by Interest Rate

Fixed Rate Issuance Floating Rate Issuance

100% 1 1 Five bond issues with a total value of EUR 1.32bn were issued 8 5 with a floating rate in the first half of 2012, a greater proportion 90% 14 22 than in 2009 and 2010, but still far below the peak levels seen in 80% the years prior to the financial crisis. More than 93% of issuance 25 70% was at a fixed rate, or 68 of 73 bonds issued.

60% Two of the floating rate notes (FRNs) came from first-time 50% 54 124 N/A 123 68 issuers. Telecoms operator Orange Switzerland brought a

40% 47 E+5.25% EUR 150m senior secured bond due 2019, and 44 30% security provider Securitas Direct issued a EUR 100m E+6.5% 23 senior secured note due 2018, both in February. 20%

10% Paper manufacturer Lecta issued the largest FRN, with a EUR

0% 390m six-year bond at three-month Euribor +5.25%, in 2Q12. FY05 FY06 FY07 FY08 FY09 FY10 FY11 HY12

Bond Issuance by Rating and Seniority

Sen. Secured Sen. Unsecured

BB+/Ba1 9

BB/Ba2 8

BB-/Ba3 7

B+/B1 6

B/B2 5

B-/B3 4

CCC+/Caa1 3

CCC/Caa2 2

CCC-/Caa3 1

0 Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12

Issuance from credits of all high-yield ratings was robust in the first quarter, but as the market became more volatile from April onward there

was a clear decline in the number of higher-rated credits issuing bonds. Most issuance in 2Q12 was from mid-rated credits (the ‘B’ rating group), indicating that higher-rated companies may have accessed alternative funding sources or cash reserves rather than issue bonds.

Page 11

ANALYTICS Debutant Issuers

European High Yield Debutant Issuance

HY 2012 HY 2011

Debutant Issuers 32% (15) Debutant Issuers 39% (31)

Existing Issuers Existing 68% (32) Issuers 61% (49)

Almost a third of companies that issued bonds in the first half of 2012 were first-time issuers (32%), or 15 out of 47 issuers. This was a slight relative decrease compared to 1H11, when 39% of issuers (31 out of 80) came to market for the first time. First-time issuers priced 27 issues totalling EUR 9.05bn in 1H12, representing 35% of total issuance by value.

The largest first-time issuer in 1H12 was German autoparts manufacturer Schaeffler, which refinanced its 2014 loans with four bonds totalling EUR 2.04bn in February. US group Lawson Software also raised EUR 1.01bn-equivalent in March to refinance debt, issuing two senior unsecured notes comprising a USD 1.015bn seven-year bond yielding 9.375% and a EUR 250m seven-year bond yielding 10%.

The proportion of first-time issuance rated in the ‘BB’ category increased significantly YoY to 22% (6 out of 27 bonds) in 1H12, from 9% in the previous half year. More than half (56%) of the issuance, or 15 out of 27 bonds, was rated in the ‘B’ category, lower than the 75% granted a ‘B’ rating in 1H11 (33 of 44 bonds). However, the number of bonds rated ‘CCC’ also increased YoY, to 22% of first-time issuance in 1H12, compared with just 14% in 1H11.

Senior secured debt represented two thirds of first-time high-yield issuance in 1H12, at 67% of all bonds issued, an increase from 54% in 1H11. All other debutants (33%) issued senior unsecured notes, a decline from 41% in 1H11. The average coupon of all first-time issuance in 1H12 was 9.109% with an average price of 98.104.

Debutant Use of Proceeds

HY 2012 HY 2011

Securitisation 4% Acquisition Acquisition 18% 29%

General Corporate Purposes 9%

Dividend Refinance 4% Refinance debt debt 69% 67%

The proportion of first-time bond issuance that companies used to refinance outstanding debt stayed almost flat, at 69% of all issuance by value, in the first half of 2012 (67% in 1H11). However, there was a clear decline in the level of proceeds used to fund M&A activities, to 18% of issuance by value (6 out of 27 bonds) in 1H12, compared with 29% in 1H11 (11 out of 44 bonds). The proportion of first-time issuance used for general corporate purposes in 1H12 was 9%, while 4% of proceeds were used for securitisation.

Page 12

ANALYTICS Moody’s & S&P Issue Ratings

Number of Bond Issues by Rating Category

CCC B BB

100% 4 90% 15 12 32 36 80% 20 29

70% 29 60%

50% 31 N/A 40% 25 64 65 35 30% 29

20% 20

10% 14 5 17 8 1 6 0% FY05 FY06 FY07 FY08 FY09 FY10 FY11 HY12

The first half of 2012 saw an increase in the number of bonds rated at the higher end of the high-yield spectrum by either Standard & Poor’s or Moody’s, with 38% of notes assigned a ‘BB’ group rating, up from 22% in 1H11. Almost half of issuance (46%) was rated in the single ‘B’ category (between ‘B+’ and ‘B-’ for S&P and ‘B1’ and ‘B3’ for Moody’s). Notes rated ‘CCC’ accounted for 11% of all issuance, close to the 13% level in 1H11. Only one of the 73 high yield issues placed in 1H12 was not rated by either agency - Teekay LNG Partners’ NOK 700m senior unsecured notes.

The rating most often assigned by Moody’s to new bonds in 1H12 was ‘B1’, given to 20 out of the 69 high yield bonds that the agency rated. Moody’s assigned a higher number of ‘Ba3‘ equivalent ratings than S&P, but also rated one bond lower than S&P, at ‘Caa2’ - the USD 475m 12.75% senior unsecured notes due 2020 issued by CEVA Logistics in January 2012.

S&P most often assigned new bonds a ‘BB’ rating in 1H12, putting 16 issues into this category out of 63 that it rated. Its lowest rating was the ‘CCC+’ rating assigned to security provider Securitas Direct’s EUR 271.5m 8.75% senior secured 2018s issued in February, while chemical group Clariant’s EUR 500m 5.625% senior unsecured 2017s were rated highest at ‘BBB-’, one notch higher than the ‘Ba1’ rating assigned to the bond by Moody’s.

Number of Bond Issues by Rating Agency

S&P HY12 Moody's HY12

20 20

16 16 15

13 12 12

9 9 8 8 7 7

5 5

4 3

1 1 1

0 BBB-/Baa3 BB+/Ba1 BB/Ba2 BB-Ba3 B+/B1 B/B2 B-/B3 CCC+Caa1 CCC/Caa2 CCC-/Caa3

Page 13

ANALYTICS Moody’s & S&P Issue Ratings

Moody’s Rating Statistics

Rating No. of Issues Amount (EURm) Average YTM Baa3 - - - Ba1 5 2,100 4.86% Ba2 13 4,098 6.65% Ba3 12 4,399 7.62% B1 20 8,012 8.47% B2 8 2,039 10.32% B3 3 1,008 8.55% Caa1 7 2,513 11.30% Caa2 1 362 13.00% Caa3 - - - Total 69 24,530

S&P Rating Statistics

Rating No. of Issues Amount (EURm) Average YTM BBB- 1 500 5.69% BB+ 5 1,915 6.99% BB 16 5,610 6.94% BB- 7 1,751 7.08% B+ 9 3,329 8.71% B 15 6,274 8.80% B- 9 3,237 10.47% CCC+ 1 272 12.50% CCC - - - CCC- - - - Total 63 22,887

Bond Issues by YTM, Rating and Seniority

Sen. Secured Sen. Unsecured

16.00%

14.00%

12.00%

10.00%

8.00%

6.00%

4.00%

2.00%

0.00% 0 1 2 3 4 5 6 7 8 9 10 CCC-/Caa3 CCC/Caa2 CCC+/Caa1 B-/B3 B/B2 B+/B1 BB-/Ba3 BB/Ba2 BB+/Ba1

Page 14

ANALYTICS Underwriter Bank League Table

European High Yield Bond Underwriters

1H12 1H11

Market Value Volume of Market Δ in market Underwriting bank Rank Rank share (EURm) Deals share share (ppt) Deutsche Bank 1 9.7% 2,489 37 2 10.8% -1.1

JP Morgan 2 6.3% 1,619 25 3 8.0% -1.7 Barclays Capital 3 6.3% 1,598 23 7 4.7% 1.6 Goldman Sachs 4 6.2% 1,597 21 4 7.8% -1.6 Morgan Stanley 5 5.8% 1,489 23 15 2.5% 3.3 Citigroup 6 5.8% 1,484 21 6 5.3% 0.5 RBS 7 4.9% 1,259 19 9 4.1% 0.8 Credit Suisse 8 4.9% 1,256 21 1 12.9% -8.0 BNP Paribas 9 3.9% 995 17 5 6.7% -2.8 Credit Agricole 10 3.7% 945 17 10 3.9% -0.2 Commerzbank 11 3.6% 914 11 20 1.2% 2.4 Unicredit 12 3.5% 903 12 16 1.9% 1.6 Bank of America Merrill Lynch 13 3.4% 872 17 8 4.3% -0.9 HSBC 14 3.2% 821 13 11 3.1% 0.1 UBS 15 3.1% 799 14 14 2.8% 0.3 Lloyds TSB 16 3.0% 773 11 17 1.7% 1.3 Societe Generale 17 2.2% 558 11 12 2.9% -0.7 Natixis 18 2.1% 527 8 18 1.6% 0.5

Landesbank Baden-Württemberg 19 2.0% 508 5 48 0.1% 1.9

ING 20 1.4% 360 6 13 2.9% -1.5 TOTAL 100% 25,557 73 100%

Deutsche Bank was ranked first in the Debtwire Analytics league table of European high yield bond underwriters at the end of 1H12, with a 9.7% share of the market. The bank worked on 37 bond issues during the period with a total value of EUR 2.49bn, and improved its ranking from second place a year earlier.

Morgan Stanley and Barclays Capital were notable movers up in the ranking compared with the previous year. The US bank gained ten places to be ranked fifth, increasing its market share to 5.8% from 2.5% a year earlier, while Barclays Capital climbed from seventh to third place as it gained 6.3% of the market in 1H12. Commerzbank also gained nine places, after more than doubling its market share to 3.6%.

However, banks such as Credit Suisse, BNP Paribas, Bank of America Merrill Lynch and Societe Generale fell several places in the ranking as they worked on fewer deals during the period. Credit Suisse slipped to rank eighth as its market share declined to 4.9% in 1H12 from 12.9% a year ago. BNP Paribas came in four places lower in 1H12, while BofA Merrill Lynch and Societe Generale each declined by five places.

Landesbank Baden-Württemberg was a new entrant into the table, up to place 19 from 48 in 1H11. Its robust performance, alongside those of Deutsche Bank and Commerzbank, indicate the relative strength of German banks in the market at a time when other banks experienced declines in their activity in the high yield market.

League Table Criteria:

Credit is awarded to all lead and joint bookrunners equally. There is no limit to the number of bookrunners that may be listed on any issuance deal. If there is no bookrunner title on a deal, credit is awarded to lead managers.

Page 15

ANALYTICS Outstanding European High Yield Bonds

Amount Outstanding by Volume and Value (EURm)

Amount Outstanding Number of deals

50,000 93 100

40,000 80

63 58 30,000 60 54

46 45,680

20,000 40,869 40

31,288 27 23 22 25,927 23 22,922 10,000 17 20 18,532

12,744 9,599 8,038 8,371 2,784 0 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Thereafter*

* Thereafter includes three perpetual bonds

Companies in Debtwire’s European high-yield universe had 515 bonds outstanding with a total value of EUR 226.76bn at the end of June 2012. The average size of each outstanding bond was EUR 440m.

As a result of refinancing activity by issuers during the period, only EUR 33.74bn or 15% of all outstanding European high yield notes remains due to mature by the end of 2014. Of this, EUR 22.92bn matures in 2014, compared with EUR 2.78bn in 2012 and EUR 8.04bn in 2013.

More than half (52%) of all outstanding bonds, with a total value of EUR 117.84bn, fall due between 2016 and 2018, creating a maturity wall for issuers that may require refinancing. A little less than 9% of this amount (EUR 10.08bn) was issued in 1H12. Companies had 63 bonds outstanding totalling EUR 31.29bn due in 2016, 89 bonds worth EUR 45.68bn due in 2017, and 93 bonds with a value of EUR 40.87bn due in 2018 at the end of the period.

The most common maturity for new issuance in 1H12 was 2019 (29 bonds worth a total EUR 10.08bn), which took the total outstanding value of bonds due in seven years’ time to EUR 25.93bn. Only 4% or EUR 9.6bn of all outstanding bonds fall due in more than nine years.

Amount Outstanding by Currency

GBP Other denominated denominations Euro-denominated debt represented 59% of all outstanding 7% 1% European high-yield bonds at the end of 1H12, equating to EUR USD 133.14bn of the total EUR 226.76bn. The vast majority of the euro denominated -denominated debt was issued in prior years, as only 9% was 33% placed during 1H12.

Companies had 131 US dollar-denominated bonds outstanding totalling EUR 75.16bn at the end of 1H12, equivalent to 33% of the total debt. Of this, 14% of bonds were issued in the first half of 2012.

Only 7% of the outstanding high yield bonds were denominated in sterling, totalling EUR 15.65bn, while 1% (six bonds) of all EUR denominated outstanding notes were denominated in alternative currencies. 59%

Page 16

ANALYTICS Outstanding European High Yield Bonds

Amount Outstanding by Sector (EURm)

Amount Outstanding per Sector (EURm) Number of deals per Sector

60,000 120 108 Change industry to sector 109

50,000 100 85

40,000 68 80

30,000 60

46,255 47,915 43,540 20,000 41,380 40

24,672 19 17 10,000 14 20 9 4 7,327 6,683 5,135 1,925 1,923 0 0 Basic Materials Communications Consumer, Consumer, Non- Diversified Energy Financial Industrial Technology Utilities Cyclical cyclical

The cyclical consumer sector had the largest value of high yield bonds outstanding, with 108 notes at a total value of EUR 47.92bn at the end of the first half of 2012. The communications sector also had high levels of bond debt, at EUR 46.26bn, while non-cyclical consumer companies also had 85 notes worth a total EUR 43.54bn outstanding. The industries with least outstanding bond debt were utilities and the technology sector, with just over EUR 1.92bn outstanding each; and energy, which had EUR 5.14bn of bond debt.

Amount Outstanding by Rating (EURm)

S&P Moody's

60,000

50,000 47,685

44,529

40,000

32,316

30,000 27,567 26,565 25,281 24,649 24,048 24,017

20,972 21,243 20,000 15,397 14,152 14,396 12,917

10,000 6,134 3,651 938 682 833 0 BBB-/Baa3 BB+/Ba1 BB/Ba2 BB-/Ba3 B+/B1 B/B2 B-/B3 CCC+/Caa1 CCC/Caa2 CCC-/Caa3 The rating category with most outstanding high yield bond debt at the end of 1H12 was the ‘BB’ grouping as rated by S&P, with EUR 99.9bn outstanding in 188 bonds. Moody’s rated 163 bonds totalling EUR 92.24bn in the same category (‘Ba1’ to ‘Ba3’). The next largest group was ‘B’ rated debt as rated by S&P, which had EUR 75.89bn outstanding, and EUR 56.61bn as rated by Moody’s.

Moody’s rated more bonds at the low end of the spectrum compared with S&P; there were 66 bonds with a total value of EUR 28.5bn in the ‘Caa’ grouping, compared with just EUR 7.75bn outstanding through 21 bonds rated ’CCC’ by S&P. Moody’s did not rate 119 of the 515 outstanding bonds, while S&P did not rate 88 bonds.

Page 17

ANALYTICS Spread Analysis

Initial Spreads vs. Credit Rating - First Quarter

1400

1200 Numericable €360m 12.375% 2019 Securitas €271.5m 8.75% 2018

Viridian €313m 11.125% 2017 Viridian $250m 11.125% 2017 Ceva $475m 12.75% 2020 Center Parcs £280m 11.625% 2018

1000 Spie €175m 11% 2019 Lowell £200m 10.75% 2019

Afren $300m10.25% 2019 Securitas €500m 8.75% 2018 Lawson €250m 10% 2019 Ono $1bn 8.875% 2018 800 Codere $300m 9.25% 2019 Taminco $400m 9.75% 2020 Schaeffler €400m 8.75% Ardagh $260m Lawson $1.015bn 9.375% 2019 Ceva $325m 8.375% 2017 Schaeffler $600m 2019 9.125% 2020 Welltec $325m 7.75% 2017 Cable & Wireless $400m 8.75% 2020 Schaeffler €800m 7.75% 2017 Faurecia €140m 9.375% 2016 8% 2019 Ineos $1bn 8.375% 2019 Schaeffler $500m 8.5% 2019 Orange CHF225m 8.25% 2020 Fiat €850m Jaguar £500m 8.25% 2020 Orange CHF450m 6.75% 2019 7% 2017 Eco-bat €300m Securitas €100m E+6.5% 2018 600 Obrascon €300m 7.75% 2017 Ardagh $160m 7.375% 2017 7.625% 2020 Ineos €500m E+6% 2019 Gategroup €350m 6.75% 2019 Clariant AG €500m 5.625% 2017 Orange €180m E+5.25% 2019 Orange €150m E+5.25% 2019 Fresenius $800m 5.625% 2019 Stora Enso €500m 5.5% 2019 Rexel $400m 6.125% 2019 400 Weinerberger €200m 5% 2015 Fresenius $700m 5.875% 2022 Fresenius €250m 5.25% 2019 HeidelbergCement €300m 4% 2016

Fresenius €500m 4.25% 2019

200

0 0 BB+/Ba11 BB/Ba22 BB-/Ba33 B+4/B1 B/B25 B-/B36 CCC+/Caa17 CCC/Caa28

Initial Spreads vs. Credit Rating - Second Quarter

1600

1400 Europcar €324m 11.5% 2017

1200

Cableuropa $310m 8.875% 2018

Four Seasons GBP175m 12.25% 2020 1000 Schmolz €258m 9.875% 2019

Wind €400m 7.375% 2018 Four Seasons £350m 8.75% 2019 800 Wind $400m Lecta €200m Faurecia €250m 8.75% 2019 7.25% 2018 8.875% 2019 Sappi $300m 8.375% 2019 Sappi $400m 7.75% 2017 Carlson Wagonlit €300m 7.5% 2019 Schaeffler €300m 6.75% 2019 600 Ineos $775m 7.5% 2020 KDG €400m 6.5% 2017 Carlson Wagonlit $465m 6.875% 2019 Swissport $130m 8.875% 2018 Lecta €390m E+5.5% 2018 Rexel $100m 6.125% 2019 400 Peogeot €600m 5.625% 2017

200

0 0 BB+/Ba11 BB/Ba22 BB3-/Ba3 B+/B14 B/B25 B-6/B3 CCC+/Caa17 CCC/Caa28

Page 18

ANALYTICS Appendices

Debtwire Europe High Yield Issuance & Pipeline Criteria

Debtwire Europe’s high yield issuance and pipeline research tracks new high yield bond issuance under the following criteria:

▪ Issue size of EUR 100m or greater and publicly traded; ▪ Debt issued and/or marketed in western Europe; ▪ Speculative grade corporate family rating and issue rating by both S&P and Moody’s. Excludes any split-rated Crossover issuers and/or issues; ▪ Non-rated bonds are included in the table if YTM at issuance is comparable with rated sub-investment grade notes.

Debtwire issuance and pipeline research does not include any of the following security types:

▪ Convertible bonds; ▪ Equipment trust certificates, enhanced equipment trust certificates and pass through certificates; ▪ Asset-backed securities.

The data is derived from a combination of Debtwire intelligence and company announcements.

Page 19

ANALYTICS High Yield Bond Issuance HY 2012

Final Pricing Instrument Rating Date Planned Actual Call Pro- Lead Book- Joint Book- Use of proceeds/ Recovery Issuer Status Price Talk Coupon Price YTM Seniority Security Maturity Industry Moody's S&P Priced Size Size tection Runner Runners Notes Rating

Proceeds for the issue BNP Paribas, out of Clariant Finance Clariant AG Priced 17/01/2012 EUR 500m 5.625% 99.724 5.69% Senior Unsecured 2017 Citigroup, Commerzbank, SEB Chemicals (Luxembourg) S.A. will Ba1 BBB- Unicredit be used for general corporate purposes.

Proceeds will be used Deutsche Bank, Bayern LB, DZ, Refinance Debt / Acquisi- Fresenius Medical Care AG & BofA Merrill Helaba, Mediobanca, Priced 17/01/2012 USD 700m 6% 5.875% 100 5.875% Senior Unsecured 2022 NC-L Healthcare tion / GCP. Issued by Ba2 BB 3 Co KgaA Lynch, Credit Raiffeisen, Societe Fresenius Medical Care Agricole, Unicredit Generale, WestLB US Finance II, Inc.

Proceeds will be used Deutsche Bank, Bayern LB, DZ, Refinance Debt / Acquisi- Fresenius Medical Care AG & BofA Merrill Helaba, Mediobanca, Priced 17/01/2012 USD 800m 5.75% 5.625% 100 5.625% Senior Unsecured 2019 NC-L Healthcare tion / GCP. Issued by Ba2 BB 3 Co KgaA Lynch, Credit Raiffeisen, Societe Fresenius Medical Care Agricole, Unicredit Generale, WestLB US Finance II, Inc.

Deutsche Bank, Bayern LB, DZ, Proceeds will be used Fresenius Medical Care AG & BofA, Merrill Helaba, Mediobanca, Refinance Debt / Acquisi- Priced 18/01/2012 EUR 250m EUR 250m 5.25% 100 5.25% Senior Unsecured 2019 NC-L Healthcare Ba2 BB 3 Co KgaA Lynch, Credit Raiffeisen, Societe tion / GCP. Issued by Agricole, Unicredit Generale, WestLB FMC Finance VIII S.A.

Proceeds will be used DNB Markets, Teekay Offshore Partners Priced 19/01/2012 NOK 600m Senior Unsecured 2017 Transportation for General Corporate Ba2 BB+ Nordea Markets Purposes.

Proceeds used for BNP Paribas Wienerberger AG Priced 19/01/2012 EUR 50m EUR 200m 5% 101.25 4.614% Senior Unsecured 2015 NC-L KBC Manufacturing general corporate pur- Ba1 BB Fortis poses

The second-priority senior secured bond will UBS, Citigroup, will part finance Apollo Second Nomura, Deutsche Taminco N.V. Priced 20/01/2012 USD 452m USD 400m 9.75%-10% 9.75% 100 9.75% Secured 2020 NC-3 Credit Suisse Chemicals Management’s acquisi- Caa1 B- 6 Lien Senior Bank, Goldman tion of the group from Sachs CVC Partners for EUR 1.1bn

Proceeds will be used to Cable & Wireless Communi- Barclays, HSBC, refinance debt. Issued Priced 20/01/2012 USD 350m USD 400m 8.75%-9% 8.75% 100 8.75% Senior Secured 2020 NC-4 Cable Ba2 BB cations Plc JPMorgan, RBS out of Sable International Finance Limited.

* US Market deals excluded from all debt calculations Page 20

ANALYTICS High Yield Bond Issuance HY 2012

Proceeds used for Barclays Capital, Ardagh Glass Ltd Priced 20/01/2012 USD 160m USD 160m 7.375% 7.375% 100.476 7.25% Senior Secured 2017 NC-2 Citigroup Packaging acquisition and general Ba3 BB- HSBC corporate purposes.

Proceeds used for Barclays Capital, Ardagh Glass Ltd Priced 20/01/2012 USD 250m USD 260m 9.125% 96.356 9.75% Senior Unsecured 2020 NC-3 Citigroup Packaging acquisition and general B3 B- HSBC corporate purposes.

Proceeds will be used to Credit Suisse, fund a special distribution Welltec A/S Priced 25/01/2012 USD 325m USD 325m 8.25% 8% 97.402 8.5% Senior Secured 2019 NC-3 DNB Markets Services B1 BB- 4 Goldman Sachs to shareholders and refinance existing debt.

BNP Paribas, Proceeds will be used to Deutsche Bank, refinance debt. Mirror BBVA, BofA Merrill note of its existing EUR Cableuropa (Grupo Corpora- Lynch, Credit Agri- Priced 26/01/2012 USD 400m USD 1bn 8.875% 96.934 9.5% Senior Secured 2018 NC-2 JPMorgan Cable 1bn 8.875% 2018 senior B1 B tivo Ono SA) cole, Goldman Sachs, secured notes. Issued ING, Morgan Stanley, out of Nara Cable Fund- Natixis, Santander, ing Limited. Societe Generale

Deutsche Bank, Proceeds will be used to Goldman Sachs, CEVA Logistics B.V. Priced 30/01/2012 USD 300m USD 325m 8.625% 8.375% 98.874 8.625% Senior Secured 2017 NC-1 Credit Suisse Transportation refinance EUR denomi- Ba3 B+ 2 JPMorgan, Morgan nated debt. Stanley, UBS

Deutsche Bank, Proceeds will be used to Goldman Sachs, CEVA Logistics B.V. Priced 30/01/2012 USD 525m USD 475m 12.75% 12.75% 98.681 13% Senior Unsecured 2020 NC-3 Credit Suisse Transportation refinance EUR denomi- Caa2 B- 5 JPMorgan, Morgan nated debt Stanley, UBS

BNP Paribas, Citi- group, Credit Agri- Proceeds will be used to UGC Europe Inc Priced 31/01/2012 USD 750m 6.875% 100 6.875% Senior Secured 2022 NC-5 JPMorgan cole, Deutsche Bank, Cable Ba3 refinance debt Morgan Stanley, RBS, UBS

The company will use the Societe Generale, proceeds to launch a Franz Haniel & Cie GmbH Priced 01/02/2012 EUR 400m 6.325% 100 6.325% Senior Unsecured 2018 ING, Deutsche Services tender offer for its out- Ba2 BB+ Bank standing 6.75% 2014 bonds.

Proceeds will be used to acquire an additional Codere SA Priced 02/02/2012 USD 250m USD 300m 9.25% 9.25% 100 9.25% Senior Unsecured 2019 NC-3 Credit Suisse Barclays Capital, Itau Leisure 35.8% stake in Mexico- B2 B 3 based gaming business Icela and GCP.

Page 21

ANALYTICS High Yield Bond Issuance HY 2012

Part of a credit agree- Commerzbank, ment replacing existing Schaeffler GmbH Priced 02/02/2012 EUR 800m 8.25% 7.75% 98.981 8% Senior Secured 2017 NC-L Deutsche Bank LBBW, RBS, Automotive loans maturing in June B1 B 3 Unicredit 2014. Issued out of Schaeffler Finance B.V.

Part of a credit agree- Commerzbank, ment replacing existing Schaeffler GmbH Priced 02/02/2012 USD 600m 8-8.25% 7.75% 98.981 8% Senior Secured 2017 NC-L JP Morgan LBBW, RBS, Automotive loans maturing in June B1 B 3 Unicredit 2014. Issued out of Schaeffler Finance B.V.

Part of a credit agree- Commerzbank, ment replacing existing Schaeffler GmbH Priced 02/02/2012 EUR 400m 8.75-9% 8.75% 100 8.75% Senior Secured 2019 NC-4 Deutsche Bank LBBW, RBS, Automotive loans maturing in June B1 B 3 Unicredit 2014. Issued out of Schaeffler Finance B.V.

Part of a credit agree- Commerzbank, ment replacing existing Schaeffler GmbH Priced 02/02/2012 USD 500m 8.5-8.75% 8.5% 100 8.5% Senior Secured 2019 NC-4 JP Morgan LBBW, RBS, Automotive loans maturing in June B1 B 3 Unicredit 2014. Issued out of Schaeffler Finance B.V.

Proceeds will be used to Credit Suisse, Citigroup, JPMorgan, Telecommunica- Orange Switzerland Priced 03/02/2012 CHF 325 CHF 450m 6.75% 6.75% 100 6.75% Senior Secured 2019 NC-3 fund Apax’s purchase of Ba3 BB- 2 Deutsche Bank Morgan Stanley, UBS tions Orange

Proceeds will be used to Credit Suisse, Citigroup, JPMorgan, Telecommunica- Orange Switzerland Priced 03/02/2012 EUR 225m EUR 225m 8.25% 8.25% 100 8.25% Senior Unsecured 2020 NC-4 fund Apax’s purchase of B3 B- 6 Deutsche Bank Morgan Stanley, UBS tions Orange

Proceeds will be used to Credit Suisse, Citigroup, JPMorgan, Telecommunica- Orange Switzerland Priced 03/02/2012 EUR 150m EUR 150m E+5.25% E+5.25% 99 Senior Secured 2019 NC-3 fund Apax’s purchase of Ba3 BB- 2 Deutsche Bank Morgan Stanley, UBS tions Orange

Barclays Capital, BofA Merrill Lynch, Citigroup, Deutsche Proceeds will be used to INEOS Group Limited Priced 03/02/2012 USD 1bn 8.5-8.75% 8.375% 100 8.375% Senior Secured 2019 NC-3 JPMorgan Bank, Goldman Chemicals Ba3 B 2 refinance debt Sachs, HSBC, Lloyds, Morgan Stanley and UBS JP Morgan, BofA Merrill Lynch, Citi- group, Deutsche Proceeds will be used to INEOS Group Limited Priced 03/02/2012 EUR 250m EUR 500m E+6-6.25% E+6% 100 Senior Secured 2019 NC-3 Barclays Capital Bank, Goldman Chemicals Ba3 B 2 refinance debt Sachs, HSBC, Lloyds, Morgan Stanley and UBS Page 22

ANALYTICS High Yield Bond Issuance HY 2012

Proceeds will be used to Credit Suisse, Citigroup, JPMorgan, Telecommunica- Orange Switzerland Priced 09/02/2012 EUR 180m EUR 180m E+5.25% 100 5.25% Senior Secured 2019 NC-1 repay its existing term Ba3 BB- 2 Deutsche Bank Morgan Stanley, UBS tions loan B.

Proceeds will repay BNP Paribas, Credit some of group’s Capital Numericable Priced 09/02/2012 EUR 350m EUR 360m 13% 12.375% 97.181 13% Senior Secured 2019 NC-4 JPMorgan Agricole, Goldman Cable Investment Facility and B2 B Sachs, HSBC part of the A, B and C loan tranches.

Proceeds will refinance BofA Merrill Lynch, debt used to acquire Goldman Sachs, Securitas Direct AB Priced 10/02/2012 EUR 500m EUR 500m 10% 8.75% 94.09 10% Senior Secured 2018 NC-2 HSBC, Nomura, Services Securitas by Bain Capital B2 B Morgan Stanley Nordea AB and Hellman & Friedman in late June 2011.

Proceeds will refinance BofA Merrill Lynch, debt used to acquire Goldman Sachs, Securitas Direct AB Priced 10/02/2012 EUR 100m EUR 100m E+6.5% E+6.5% 93 Senior Secured 2018 NC-2 HSBC, Nomura, Services Securitas by Bain Capital B2 B Morgan Stanley Nordea AB and Hellman & Friedman in late June 2011.

BofA Merrill Lynch, Proceeds will be used to Goldman Sachs, Securitas Direct AB Priced 10/02/2012 EUR 271.5m EUR 271.5m 12.5% 8.75% 83.194 12.5% Senior Secured 2018 NC-2 HSBC, Nomura, Services refinance their Series B Caa1 CCC+ Morgan Stanley Nordea AB loan.

Proceeds will be used to Credit Agricole, BNP Paribas, Societe reduce outstanding debt Faurecia SA Priced 14/02/2012 EUR 140m EUR 140m 9.375% 107.5 7.481% Senior Unsecured 2016 NC-L Automotive Ba3 Natixis Generale under its existing syndi- cated credit facility.

Barclays, HSBC, Proceeds will be used for Center Parcs (UK) Group Plc Priced 17/02/2012 GBP 270m GBP 280m 11.75% 11.625% 100 11.625% Senior Secured 2018 NC-3 RBS Lloyds Banking Leisure BB+ Securitisation Group

Proceeds will be used to repurchase a portion of Virgin Media Inc Priced 29/02/2012 USD 400m USD 500m 5.25% Senior Unsecured 2022 Cable BB- 5 its 9.50% senior notes due 2016.

Issued under its EMTN programme the note will be used to refinance a Mid Citigroup, Goldman Paper & Forest Stora Enso Oyj Priced 29/02/2012 EUR 500m EUR 500m 5.5% 99.824 5.531% Senior Unsecured 2019 Deutsche Bank tender offer for part of its Ba2 BB swaps+3% Sachs, SEB Products EUR 750m 5.125% 2014 bond and for general corporate purposes.

Page 23

ANALYTICS High Yield Bond Issuance HY 2012

Issued out of Viridian Group FundCo II Limited Deutsche Bank, Barclays, Commerz- proceeds will be used to Viridian Group Limited Priced 01/03/2012 USD 250m 11.75-12% 11.125% 96.723 12% Senior Secured 2017 NC-3 Energy Services B2 RBS bank, UBS repay exisiting indebtedness and for general corporate purposes. Issued out of Viridian Group FundCo II Limited Deutsche Bank, Barclays, Commerz- proceeds will be used to Viridian Group Limited Priced 01/03/2012 EUR 313m 11.75-12% 11.125% 96.723 12% Senior Secured 2017 NC-3 Energy Services B2 RBS bank, UBS repay exisiting indebtedness and for general corporate purposes.

Proceeds will be used to Goldman Sach, BNP USD300- Global Hunter, repay existing debt and Afren Plc Priced 01/03/2012 USD 300m 10.5-10.75% 10.25% 99.976 10.25% Senior Secured 2019 NC-4 Paribas, Deutsche Energy Services B 350m Natixis for general corporate Bank purposes.

Citigroup, Deutsche Proceeds will be used to Gategroup Holding AG Priced 02/03/2012 EUR 350m EUR 350m 6.75-7% 6.75% 100 6.75% Senior Unsecured 2019 NC-3 Credit Suisse Bank, Goldman Services B1 BB 4 refinance debt Sachs

Issued out of Eco-Bat Finance plc proceeds will Citigroup, Credit Barclays, ING Group be used to repay revolv- Eco-Bat Technologies plc Priced 02/03/2012 EUR 300m EUR 300m 7.75-8% 7.75% 100 7.75% Senior Unsecured 2017 NC-2 Metals & Mining B1 B+ 3 Suisse N.V. ing facilities and for general corporate purposes. BofA Merrill Lynch, Commerzbank, Danske Bank A/S, Deutsche Bank, Proceeds will be used for Construction & HeidelbergCement AG Priced 02/03/2012 EUR 300m EUR 300m 4.25-4.375% 4% 100 4% Senior Unsecured 2016 NC-L Morgan Stanley Nordea AB, Raif- General Corporate Ba1 BB Homebuilding feisen Bank, Skandi- purposes naviska Enskilda Banken AB, Standard Chartered The notes will be used to purchase EUR 176.3m BofA Merrill Lynch, worth of its EUR 700m Citigroup, Credit Construction & senior notes due 2015. Obrascon Huarte Lain SA Priced 15/03/2012 EUR 300m EUR 300m 7.5-7.75% 7.625% 100 7.625% Senior Unsecured 2020 NC-4 Credit Suisse Agricole, RBS, Ba2 BB- Homebuilding The remaining proceeds Santander, Societe of around EUR 124m will Generale remain in OHL's cash balance. The German healthcare group will use the pro- Bayern LB, Com- ceeds to fund its acquisi- Fresenius SE & Co. KGaA Priced 21/03/2012 EUR 500m EUR 500m 4.25% 4.25% 100 4.25% Senior Unsecured 2019 NC-L Deutsche Bank merzbank, LBBW, Healthcare tion of the Damp Group, Ba1 BB+ RBS refinancing of short-term debt, and general corporate purposes. Banca IMI, Barclays, Commerzbank, Credit Proceeds will be used to Fiat S.p.A. Priced 21/03/2012 EUR 850m EUR 850m 7% 7% 100 7% Senior Unsecured 2017 Agricole, Goldman Automotive Ba3 BB refinance debt Sachs, Natixis , UniCredit

Page 24

ANALYTICS High Yield Bond Issuance HY 2012

Issued out of Lowell Group Financing plc. Barclays Capital, Rexel SA Priced 21/03/2012 USD 300m USD 400m 6.25% 6.125% 100 6.125% Senior Unsecured 2019 NC-3.75 BofA Merrill Lynch Services Proceeds will be used for Ba2 BB RBS general corporate purposes

Lloyds Banking Proceeds will be used to Lowell Group Priced 23/03/2012 GBP 200m GBP 200m 10.75% 10.75% 100 10.75% Senior Secured 2019 NC-3 JPMorgan Financial Services B1 BB 2 Group refinance debt

Citigroup, JPMorgan, Proceeds will be used for Jaguar Land Rover Priced 23/03/2012 GBP 500m GBP 500m 8.25-8.5% 8.25% 99.289 8.375% Senior Unsecured 2020 NC-4 Credit Suisse Morgan Stanley, Automotive general corporate pur- B1 B+ 4 Standard Chartered poses

Issued out of Spie Calyon, Deutsche Bondco 3 S.C.A. the SPIE SA Priced 28/03/2012 EUR 375m EUR 375m 11-11.5% 11% 100 11% Senior Unsecured 2019 NC-3.5 Morgan Stanley Bank, BNP Paribas, Energy Services Caa1 notes will be used to Natixis refinance existing debt.

Barclays, Credit Proceeds, along with Suisse, Deutsche new USD 3.65bn credit Bank, JPMorgan, facility, will refinance debt Lawson Software Priced 29/03/2012 USD 1015m 9.5% 9.375% 100 9.375% Senior Unsecured 2019 NC-3 BofA Merrill Lynch Technology Caa1 B- 5 Kohlberg Kravis in relation to the merger Roberts & Co., of Lawson and Infor Morgan Stanley, RBC Global Solutions.

Barclays, Credit Proceeds, along with Suisse, Deutsche new USD 3.65bn credit Bank, JPMorgan, facility, will refinance debt Lawson Software Priced 29/03/2012 EUR 250m EUR 250m 10% 10% 100 10% Senior Unsecured 2019 NC-3 BofA Merrill Lynch Technology Caa1 B- 5 Kohlberg Kravis in relation to the merger Roberts & Co., of Lawson and Infor Morgan Stanley, RBC Global Solutions.

Proceeds fund the Jefferies, Citi- purchase of the Dragon- Vantage Drilling Company Inc Priced 02/04/2012 USD 775m USD 775m 11.5% 11.5% 108 7.642% Senior Secured 2015 NC-1 Energy Services B3 B- group, RBC quest deep sea drillship from Valencia Drilling.

BBVA, Credit The notes will be used to Agricole, PSA Peugeot-Citroen SA Priced 03/04/2012 EUR 600m 5.625% 99.472 5.751% Senior Unsecured 2017 Automotive refinance the group's Ba1 BB+ Deutsche Bank, 2013 maturities. HSBC, Natixis

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ANALYTICS High Yield Bond Issuance HY 2012

EUR 250m of proceeds will repay half of the EUR 500m bridge loan the BNP Paribas, Banca group incurred to pur- Wind Telecomunicazioni Imi, Barclays, Credit Telecommunica- Priced 04/04/2012 EUR 200m EUR 200m 7.375% 90.121 9.625% Senior Secured 2018 NC-3 Deutsche Bank chase spectrum licences Ba3 BB S.p.A. Suisse, ING, Societe tions in 2011. The remaining Generale EUR 250m will be used to prepay short-term maturities and fund GCP.

EUR 250m of proceeds will repay half of the EUR 500m bridge loan the BNP Paribas, Banca group incurred to pur- Wind Telecomunicazioni Imi, Barclays, Credit Telecommunica- Priced 04/04/2012 USD 400m USD 400m 7.25% 92.181 9% Senior Secured 2018 NC-3 Deutsche Bank chase spectrum licences Ba3 BB S.p.A. Suisse, ING, Societe tions in 2011. The remaining Generale EUR 250m will be used to prepay short-term maturities and fund GCP.

The company intends to use the net proceeds Telecommunica- (after fees and expenses) Inmarsat Plc Priced 05/04/2012 USD 200m USD 200m 7.375% 106 Senior Unsecured 2017 Ba2 tions of USD 208.4m for general corporate purposes.

Proceeds will be used for Barclays, BofA general corporate pur- Rexel SA Priced 16/04/2012 USD 100m USD 100m 6.125% 100.75 5.96% Senior Unsecured 2019 NC-3 Services Ba2 BB Merrill Lynch, RBS poses, including backing potential acquisitions.

Faurecia will use the net proceeds primarily to reduce its outstanding debt, including the BNP Paribas, HSBC, Faurecia SA Priced 27/04/2012 EUR 250m EUR 250m 8.75-9% 8.75% 99.974 8.75% Senior Unsecured 2019 NC-3 Credit Agricole Automotive repayment of part of the B2 Mitsubishi, Natixis revolving indebtedness under its corporate EUR 1,150m Senior Credit Facility.

Proceeds will be partly used to refinance senior 7.625- Barclays, JPMor- INEOS Group Limited Priced 27/04/2012 USD 2.2bn USD 775m 7.5% 100 7.5% Senior Secured 2020 NC-3 Goldman Sachs, UBS Chemicals term loans and will be B1 B+ 7.875% gan marketed in the US and Europe.

Proceeds will be used for Teekay LNG Partners L.P. 01/05/2012 NOK 700m NOK 700m Senior Unsecured 2017 Transportation general corporate purposes.

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ANALYTICS High Yield Bond Issuance HY 2012

Credit Suisse, Mor- Paper & Forest Proceeds will refinance Lecta S.A Priced 04/05/2012 EUR 245m EUR 200m 9% 8.875% 100 8.875% Senior Secured 2019 NC-3 Deutsche Bank B1 gan Stanley Products existing indebtedness.

Credit Suisse, Bank, Paper & Forest Proceeds will refinance Lecta S.A Priced 04/05/2012 EUR 345m EUR 390m E+5.25-5.5% E+5.5% 99 Senior Secured 2018 NC-2 Deutsche Bank B1 Morgan Stanley Products existing indebtedness.

Credit Agricole, The notes will partly Subordi- Goldman Sachs, refinance the group’s Europcar Groupe SA Priced 04/05/2012 EUR 335 EUR 324m 12.5% 11.5% 91.216 14% Senior 2017 NC-L Deutsche Bank Leisure Caa1 B- 5 nated JPMorgan, RBS, EUR 425m FRNs due Societe Generale May 2013.

Net proceeds, along with approximately USD 47m of cash on hand, will be BNP Paribas, Jeffer- used to repay in full ies, Lloyds Banking CWT’s senior facilities Carlson Wagonlit Travel Priced 09/05/2012 USD 492 USD 465m 7.625% 6.875% 100 6.875% Senior Secured 2019 NC-3 JPMorgan Leisure B1 B+ 4 Group, Morgan and to redeem its senior Stanley floating rate notes due in 2015 (not taking into account accrued and unpaid interest).

Net proceeds, along with approximately USD 47m of cash on hand, will be BNP Paribas, Jeffer- used to repay in full ies, Lloyds Banking CWT’s senior facilities Carlson Wagonlit Travel Priced 09/05/2012 EUR 275m EUR 300m 7% 7.5% 100 7.5% Senior Secured 2019 NC3 JPMorgan Leisure B1 B+ Group, Morgan and to redeem its senior Stanley floating rate notes due in 2015 (not taking into account accrued and unpaid interest).

Commerzbank, Credit Proceeds will be used to Schmolz + Bickenbach AG Priced 11/05/2012 EUR 300m EUR 258m 9.5-10.5% 9.875% 96.957 10.5% Senior Secured 2019 NC-3 BNP Paribas Suisse, RBS, Metals & Mining B1 B+ 3 refinance debt UniCredit

Proceeds together with cash on hand will be used to fund its acquisition of Flightcare, repay Swissport International AG Priced 11/05/2012 USD 130m USD 130m 7.875% 103 7.221% Senior Secured 2018 NC-2 Citigroup Barclays Transportation B2 B 4 existing third-party debt and fees incurred in connection with the acquisition and offering.

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ANALYTICS High Yield Bond Issuance HY 2012

The non-fungible B1/B+ rated tap will take out the BNP Paribas, JPMor- EUR 225m bridge placed gan, Societe Gener- Telecommunica- Cableuropa SAU Priced 30/05/2012 USD 300m USD 310m 8.875% 85 12.298% Senior Secured 2018 NC-1.5 BofA Merrill Lynch in conjunction with the B1 B+ ale, Credit Agricole, tions group’s recent EUR Deutsche Bank 1.4bn refinancing pack- age.

Proceeds back Terra Four Seasons Health Care Barclays, Lloyds Firma’s GBP 825m Priced 14/06/2012 GBP 350m GBP 350m 8.75-9% 8.75% 98.733 9% Senior Secured 2019 NC-3 Goldman Sachs Healthcare B1 B+ 1 Limited Bank acquisition of the UK nursing home group

Proceeds back Terra Four Seasons Health Care Barclays, Lloyds Firma’s GBP 825m Priced 14/06/2012 GBP 175m GBP 175m 12.5% 12.25% 98.773 12.5% Senior Unsecured 2020 NC-4 Goldman Sachs Healthcare Caa1 B- 4 Limited Bank acquisition of the UK nursing home group

Proceeds will refinance a portion of the group’s Deutsche Bank, Kabel Deutschland Priced 18/06/2012 EUR 300m EUR 400m 6.5-6.75% 6.5% 100 6.5% Senior Unsecured 2017 NC-2 Morgan Stanley Cable EUR 600m unsecured B1 B 6 Goldman Sachs bridge facility at Holdco Deutschland Holding AG

Proceeds will refinance Credit Agricole JP Morgan, Paper & Forest its outstanding 12% US Sappi Priced 21/06/2012 USD 300m USD 400m 7.75% 7.75% 100 7.75% Senior Secured 2017 NC-L Standard Chartered, Ba2 BB 2 Citigroup, RBS Products dollar and 11.75% euro Unicredit notes due 2014

Proceeds will refinance Credit Agricole JP Morgan, Paper & Forest its outstanding 12% US Sappi Priced 21/06/2012 USD 300m USD 300m 8.375% 8.375% 100 8.37%5 Senior Secured 2019 NC-3 Standard Chartered, Ba2 BB 2 Citigroup, RBS Products dollar and 11.75% euro Unicredit notes due 2014

The group plans to use the proceeds to repay part of its outstanding Barclays, BayernLB, Schaeffler Finance BV Priced 28/06/2012 EUR 200m EUR 300m 6.75% 98.981 7% Senior Secured 2017 NC-2 Deutsche Bank Automotive debt under its new senior B1 B Citigroup facilities agreement as well as fees and expenses.

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ANALYTICS

Debtwire Reports & Contacts

Debtwire Analytics Research

Europe Cable & Telecoms Sector Report May 2012

Europe Leveraged Loan Report FY11 Mar 2012

Europe High Yield Report FY11 Feb 2012

Europe Gaming Sector Report Jan 2012

US HY and Leveraged Loan Report FY11 Jan 2012

Europe Paper Manufacturing Sector Report Sep 2011

Asia High Yield Issuance Report 2Q11 Jul 2011

CEEMEA High Yield Issuance Report 2Q11 Jul 2011

Europe High Yield Report HY11 Jul 2011

European Directories Sector Report Jul 2011

Europe Analyst Team

Attila Takacs Head of Research — Europe

+44 (0)20 7059 6167 [email protected]

Charu Singh Thomas Alline +44 (0)20 7010 2693 +44 (0)20 7010 6298 [email protected] [email protected] Miguel Molina Rashmi de Costa +44 (0)20 7010 6289 +44 (0)20 7059 6123 [email protected] [email protected] Nazokat Faizullaeva Denitsa Stoyanova +44 (0)20 7010 6012 +44 (0)20 7010 6358 [email protected] [email protected] Editors

Alison Lock Carrie-Anne Holt Research Editor Managing Editor

+44 (0)20 7010 5180 +44 (0)20 7059 6177 [email protected] [email protected]

Global Analyst Contacts

John Brokos Howard Tang Head of Research- Hedge Fund Products Head of Leveraged Finance Research +852 2158 9737 +1 212 686 6559 [email protected] [email protected]

Europe Sales

Angus Codd Victoria Hunter Head of Sales Senior CRM Consultant

+ 44 (0)20 7010 6121 +44 (0)20 7010 6345 [email protected] [email protected]

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ANALYTICS