Jefferies Maritime Group

Jefferies LLC

Member SIPC

INVESTMENT BANKING

Jefferies Maritime Group

Maritime Market Update May 31, 2016

IN THIS ISSUE

Maritime Update Tanker Market Update Tanker Universe Equity Comparables Tanker FFA Curve Dry Cargo Market Update Drybulk Universe Equity Comparables Drybulk FFA Curve Gas Carrier Market Update Gas Carrier Universe Equity Comparables Shipping MLP Market Update Shipping MLP Universe Equity Comparables

Equity Market Conditions U.S. Equity Market Overview U.S. IPO Market Overview – Summary of Issuance U.S. Industrials IPO Market Overview U.S. Follow-on Market Overview

Debt Market Update Debt Market Overview Maritime Bonds

Maritime Market Update May 2016 /

Disclosure

Important Disclosures This communication is being provided strictly for informational purposes only and is not intended as a recommendation or an offer or solicitation for the purchase or sale of any security referenced herein. This material has been prepared by Jefferies LLC (“Jefferies”) a U.S.-registered broker-dealer, employing appropriate expertise, and in the belief that it is fair and not misleading. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified, therefore, we do not guarantee its accuracy. This is not an offer or solicitation of an offer to buy or sell any security or investment. Any opinion or estimates constitute our best judgment as of this date, and are subject to change without notice. Jefferies and Jefferies International Limited and their affiliates and their respective directors, officers and employees may buy or sell securities mentioned herein as agent or principal for their own account. This report was created by members of the investment banking division of Jefferies, and has not been reviewed by or discussed with, any member of Jefferies’ research department. This report is not intended to be, and in no way constitutes a “research report”, as such term is defined in Rule 137 promulgated under the Securities Act of 1933, as amended. Jefferies’ investment banking department has done, and may continue to do business with, companies included in this report. This report is a marketing communication and is not and should not be construed as investment research. Reproduction without written permission of Jefferies is expressly forbidden. Additional Information This material is approved for distribution in the United Kingdom by Jefferies International Limited, which is authorised and regulated by the Financial Services Authority ("FSA") and is located at Vintners Place, 68 Upper Thames Street, London EC4V 3BJ; telephone +44 (0) 20 7029 8000; facsimile +44 (0) 20 7029 8010. While we believe this information and materials upon which this information was based are accurate, except for any obligations under the rules of the FSA, we do not guarantee its accuracy. In the UK, this publication is directed solely at persons who have professional experience in matters relating to investments falling within Articles 19(5) and 49(2)(a) to (d) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) or at persons to whom it can be otherwise lawfully distributed. For Canadian investors, this material is intended for use only by professional or institutional investors. None of the investments or investment services mentioned or described herein is available to other persons or to anyone in Canada who is not a "Designated Institution" as defined by the Securities Act (Ontario). For investors in the Republic of Singapore, this material is intended for use only by accredited, expert or institutional investors as defined by the Securities and Futures Act and is distributed by Jefferies Singapore Limited which is regulated by the Monetary Authority of Singapore. Any matters arising from, or in connection with, this document should be brought to the attention of Jefferies Singapore Limited at 80 Raffles Place #15-20, UOB Plaza 2, Singapore 048624, telephone: +65 6551 3950. Recipients of this document in any other jurisdiction should inform themselves about and observe any applicable legal requirements in relation to the receipt of this report. All logos, trademarks and service marks appearing herein are property of Jefferies. Member SIPC • © 01/2014 Jefferies LLC

i


Table of Contents

Maritime Update 1

Equity Market Conditions 12

Debt Market Update 16

ii


Maritime Update

1


2.0% 0.9%

2.5% 6.5%

(2.1%) 6.5%

8.3% 7.4%

0.3% 5.2%

3.3% 5.5%

40%

50%

60%

70%

80%

90%

100%

110%

120%

5/28/15 7/27/15 9/26/15 11/26/15 1/26/16 3/27/16 5/27/16

Tanker Companies S&P 500

Regulatory Filings

No Filings

Recent Sector News

West Texas Intermediate crude prices increased 3.3% on the week from $47.75 per barrel to $49.33

Brent Crude prices increased 1.2% on the week from $48.72 per barrel to $49.32

Tanker Market Update Week of May 31, 2016

Source: Bloomberg, Capital IQ and SEC filings.

Recent News (May 23, 2016 – May 29, 2016)

Last Twelve Months Indexed Performance

Indexed to 100

Stock Price % of 52 LTM

5/27/2016 Week High Change Weekly Change (%)

Ardmore Shipping 9.35$ 62.0% (22.0%)

DHT Holdings 5.40 60.1% (32.3%)

Euronav 10.11 60.8% (19.9%)

Frontline 8.02 47.0% NA

Gener8 Maritime 6.87 46.4% NA

Navios Maritime Acquisition 1.80 40.0% (48.7%)

Nordic American Tankers 15.12 86.6% 16.4%

Scorpio Tankers 5.82 50.0% (36.9%)

Ship Finance International 15.70 88.2% 2.4%

Teekay Corporation 10.12 20.8% (77.9%)

Teekay Tankers 3.49 40.9% (49.0%)

Tsakos Energy Navigation 6.19 59.0% (35.9%)

Mean 55.1% (30.4%)

2


Tanker Universe Equity Comparables ($Millions, except per share data)

Source: Forward calendar year estimates per Bloomberg.

a Stock Total TEV / EBITDA P / E Dist Cash Yield Dividend Yield Price / TEV /

Price % 52-Week Market Enterprise Adjusted Adjusted5/27/2016 High Cap Value NAV Asset Value

Ardmore Shipping Corporation 9.35$ 62.0% 244.6$ 613.5$ 8.1x 8.3x 8.2x 8.0x 29.5% 27.2% 7.6% 8.6% 78.7% 90.3%

DHT Holdings 5.40 60.1% 504.2 1,106.7 4.5x 5.4x 4.6x 7.6x 39.4% 34.5% 15.1% 10.7% 81.7% 90.7%

Euronav 10.11 60.8% 1,603.6 2,431.4 4.7x 6.1x 5.7x 9.5x 32.3% 25.5% 14.8% 10.0% 82.0% 87.4%

Frontline 8.02 47.0% 1,254.2 2,332.2 6.3x 6.1x 7.0x 8.9x 26.6% 27.6% 13.6% 11.5% 126.5% 112.7%

Gener8 Maritime 6.87 46.4% 568.0 1,632.0 4.8x 4.2x 2.7x 3.1x 57.6% 54.6% 0.0% 0.0% 46.1% 71.0%

Navios Maritime Acquisition 1.80 40.0% 272.5 1,394.6 6.8x 7.4x 3.5x 3.9x 49.7% 27.6% 11.1% 11.1% 62.2% 89.4%

Nordic American Tankers 15.12 86.6% 1,350.5 1,635.3 8.2x 9.9x 13.4x 22.1x 15.4% 14.5% 10.6% 8.8% 209.1% 175.7%

Scorpio Tankers 5.82 50.0% 1,007.1 2,883.3 8.4x 7.7x 7.9x 6.6x 25.5% 28.7% 8.7% 10.3% 95.6% 98.4%

Ship Finance International 15.70 88.2% 1,467.4 3,064.2 9.8x 9.4x 6.6x 7.1x 18.2% 21.5% 11.5% 11.5% NM NM

Teekay Corporation 10.12 20.8% 736.2 10,133.2 7.9x 7.7x 10.6x 12.6x 81.3% NA 2.2% 2.3% NM NM

Teekay Tankers 3.49 40.9% 544.7 1,563.8 4.8x 5.9x 2.8x 3.7x 52.4% 50.9% 13.8% 11.8% 81.7% 92.8%

Tsakos Energy Navigation 6.19 59.0% 540.6 1,842.9 6.3x 5.4x 4.7x 3.8x 41.9% 51.1% 5.2% 5.1% 77.7% 92.3%

Mean 6.7x 7.0x 6.5x 8.1x 39.2% 33.0% 9.5% 8.5% 94.1% 100.1%

2016E 2017E2016E 2017E 2016E 2017E 2016E 2017E

3


Tanker FFA Curve

Source: Bloomberg.

VLCC TD3 FFA ($/Day)

Panamax LR1 TC5 FFA ($/Day)

Aframax TD7 FFA ($/Day)

Handymax MR TC2 FFA ($/Day)

(May 27, 2016)

$45,637 $40,801

$28,717

-

$10,000

$20,000

$30,000

$40,000

$50,000

Q2-16 2016 2017

$19,549

$14,874

$8,754

-

$5,000

$10,000

$15,000

$20,000

$25,000

Q2-16 2016 2017

$17,759

$15,256 $15,766

$10,000

$13,000

$16,000

$19,000

Q2-16 2016 2017

$7,463

$7,713

$7,476

$7,000

$7,250

$7,500

$7,750

$8,000

Q2-16 2016 2017

4


-

20%

40%

60%

80%

100%

120%

5/27/15 7/27/15 9/26/15 11/26/15 1/26/16 3/27/16 5/27/16

Drybulk Companies Container Companies S&P 500

k Last Twelve Months Indexed Performance

Recent Sector News

No News

Dry Cargo Market Update

Regulatory Filings

5/24: Euroseas released Q1 2016 earnings

5/24: Golden Ocean released Q1 2016 earnings

5/25: Navios Maritime released Q1 2016 earnings

5/27: Seaspan announced a public offering of Class A common shares and subsequent redemption of Series C Preferred Shares


Indexed to 100


Week of May 31, 2016


9.0% 0.5%

10.5% (19.6%)

20.2% (16.4%)

8.8% (3.9%)

46.0% (39.9%)

10.5% 6.4%

0.0% 0.4%

(0.9%)

(50.0%) 5.8%

(2.3%) (1.8%)

(6.5%) (10.8%)



DrybulkDiana Shipping 2.55$ 30.8% (60.8%)DryShips 2.19 11.4% (88.3%)Eagle Bulk 0.58 6.3% (94.1%)Euroseas 1.93 24.7% (73.2%)Genco Shipping & Trading 0.59 7.5% (91.7%)Globus Maritime 0.51 28.7% (95.6%)Golden Ocean Group 0.77 16.6% (81.6%)Goldenport 0.03 1.6% (43.5%)Navios Maritime Holdings 1.05 23.3% (69.0%)Paragon Shipping 0.92 2.0% (96.8%)Safe Bulkers 1.10 26.6% (67.2%)Scorpio Bulk 3.84 12.6% (86.8%)Seanergy Maritime 2.53 35.1% (27.2%)Star Bulk Carriers 0.76 22.3% (74.5%)Ultrapetrol 0.28 21.6% (77.9%)

Mean 18.1% (75.2%)

ContainerBox Ships 0.02$ 1.9% (99.8%)Costamare 9.52 46.6% (20.7%)Danaos 3.39 50.6% (47.5%)Diana Containerships 0.67 25.3% (95.6%)

Global Ship Lease 1.58 24.7% (72.1%)

Seaspan 14.95 71.6% (25.1%)

Mean 36.8% (60.2%)

5


Drybulk Universe Equity Comparables ($Millions, except per share data)


Stock Total TEV / EBITDA P / E Dist Cash Yield Dividend Yield Price / TEV / Price % 52-Week Market Enterprise Adjusted Adjusted

5/27/2016 High Cap Value NAV Asset Value

DrybulkDiana Shipping 2.55$ 30.8% 204.1$ 727.6$ NA NA NM NM NM NM 0.0% NA 109.0% 102.4%

DryShips 2.19 11.4% 58.5 272.3 NM NM NM NM NM NM NA NA 22.7% 57.8%

Eagle Bulk 0.58 6.3% 227.4 463.9 NM NM NM NM NM NM 0.0% 0.0% 144.5% 117.8%

Euroseas 1.93 24.7% 15.8 91.8 13.5x 11.5x NM NM NM NM 0.0% 0.0% 73.1% 94.0%

Genco Shipping & Trading 0.59 7.5% 43.4 509.1 NA NA NM NM NM NM 0.0% 0.0% 17.0% 70.5%

Globus Maritime 0.51 28.7% 5.2 80.0 NM NM NM NM NM NM NA NA NM 136.3%

Golden Ocean 0.77 16.6% 407.3 1,149.8 NA NA NM NM NM NM 0.0% 0.0% 95.3% 98.3%

Goldenport 0.03 1.6% 0.3 106.8 13.3x 12.4x NM NM NM NM NA NA 8.5% 96.9%

Navios Maritime Holdings 1.05 23.3% 111.3 1,965.0 NM 22.9x NM NM NM 6.4% 0.0% 0.0% NM 123.2%

Paragon Shipping 0.92 2.0% 0.6 149.0 NM NM NM NM NM NM NA NA NM 174.5%

Safe Bulkers 1.10 26.6% 91.9 716.7 27.1x 16.3x NM NM 18.6% NM 0.0% 0.0% NM 115.5%

Scorpio Bulkers 3.84 12.6% 190.9 498.9 NA NA NM NM NM NM NA NA 43.6% 66.9%

Seanergy Maritime 2.53 35.1% 49.4 223.7 NM NM NM NM NM NM 0.0% 0.0% NM 167.6%

Star Bulk Carriers 0.76 22.3% 167.2 1,008.1 NA 19.8x NM NM NM 41.0% NA NA 66.4% 92.3%

Ultrapetrol 0.28 21.6% 39.5 441.4 NM NM NM 1.8x NM NM 0.0% 0.0% NM NM

Mean 18.0x 16.6x NM 1.8x 18.6% 23.7% 0.0% 0.0% 64.4% 108.1%

ContainerBox Ships 0.02$ 1.9% 0.6$ 133.3$ NA NA NM NM NM NM NA NA NM NMCostamare 9.52 46.6% 717.8 2,360.0 7.4x 7.8x 6.1x 6.3x 33.1% 32.8% 11.9% 12.0% NM NMDanaos 3.39 50.6% 372.2 2,977.0 7.8x 8.3x 2.2x 2.4x 65.5% 51.9% 0.0% 0.0% NM NM

Diana Containerships 0.67 25.3% 50.0 200.1 NM 27.2x NM NM 46.4% NM 1.5% 1.5% NM NM

Global Ship Lease 1.58 24.7% 86.8 864.2 7.7x NA NM NM 84.8% NM NA NA NM NM

Seaspan 14.95 71.6% 1,547.9 5,204.2 8.8x 8.6x 12.2x 12.5x 27.0% 30.8% 10.1% 10.0% NM NM

Mean 7.9x 13.0x 6.8x 7.1x 51.4% 38.5% 5.9% 5.9% NM NM

2016E 2017E2016E 2017E 2016E 2017E 2016E 2017E

6


$5,583 $5,550

$6,675

-

$1,600

$3,200

$4,800

$6,400

$8,000

2016 2017 2018

$5,958 $5,825

$6,850

$4,000

$6,000

$8,000

2016 2017 2018

$5.72 $5.65

$6.00

$5.40

$5.50

$5.60

$5.70

$5.80

$5.90

$6.00

$6.10

2016 2017 2018

$7,900 $7,825

$9,200

$6,000

$8,000

$10,000

2016 2017 2018

Capesize 4TC FFA ($/Day) Capesize C7 FFA ($/Ton)

Panamax 4TC FFA ($/Day) Supramax 5TC FFA ($/Day)

Drybulk FFA Curve

Source: Bloomberg. Note: Last updated April 18, 2016. (1) Represents the average of forward quarters.

(1)

(1) (1)

(1)

7


30%

40%

50%

60%

70%

80%

90%

100%

110%

5/27/15 7/27/15 9/26/15 11/26/15 1/26/16 3/27/16 5/27/16Gas Comps S&P 500


Recent Sector News

Henry Hub gas prices decreased 7.6% on the week from $1.96 per MMbtu to $1.81

North American spot LNG propane (Mt. Belvieu) prices decreased 4.4% on the week from $5.92 per MMBtu to $5.66

North American spot LNG Butane (Mt. Belvieu) prices increased 1.2% on the week from $6.70 per MMBtu to $6.78

North American spot LNG Ethane (Mt. Belvieu) prices decreased 1.9% on the week from $2.18 per MMBtu to $2.14

Total U.S. working gas in underground storage increased 2.7% on the week from 2,681 billion cubic feet to 2,754

Gas Carrier Market Update

Source: Bloomberg, Capital IQ, U.S. Energy Information Administration and SEC filings.

Indexed to 100



Regulatory Filings

No Filings

1.1% 4.8%

1.4% (3.8%)

3.5%

xc Stock Price % of 52 LTM


Dorian LPG 8.82$ 50.1% (38.2%)

GasLog 12.12 57.4% (40.6%)

Golar LNG 17.59 33.9% (64.8%)

Navigator Holdings 13.90 68.4% (28.5%)

Stealthgas 4.96 69.9% (27.3%)

Mean 55.9% (39.9%)

8


Gas Carrier Universe Equity Comparables ($Millions, except per share data)


Stock Total TEV / EBITDA P / E Dist Cash Yield Dividend YieldPrice % 52-Week Market Enterprise

5/27/2016 High Cap Value

Dorian LPG 8.82$ 50.1% 504.7$ 1,247.0$ 6.0x 5.8x 3.6x 3.5x 36.3% 34.8% 0.0% 0.0%

GasLog 12.12 57.4% 975.6 3,797.5 13.0x 10.3x NM 18.9x 15.6% 21.5% 4.7% 4.7%

Golar LNG 17.59 33.9% 1,639.4 3,029.1 NM 17.2x NM NM NM 7.9% 1.1% 1.4%

Navigator Holdings 13.90 68.4% 770.4 1,329.1 12.0x 8.2x 8.4x 7.6x 19.9% 22.7% NA NA

Stealthgas 4.96 69.9% 201.1 504.6 7.2x 6.8x 14.9x 14.2x 30.4% NA NA NA

Mean 9.6x 9.6x 8.9x 11.0x 25.6% 21.7% 1.9% 2.0%

2016E 2017E2016E 2017E 2016E 2017E 2016E 2017E

9


20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

5/28/15 7/27/15 9/26/15 11/26/15 1/26/16 3/27/16 5/27/16

S&P 500 MLP Comps

Shipping MLP Market Update

Regulatory Filings

No Filings


Indexed to 100




5.7% 1.3%

4.7% (2.4%)

1.3% 0.9%

3.0% 3.0%

(0.8%) (1.4%)



Capital Product Partners 2.78$ 30.1% (69.4%)

Dynagas LNG Partners LP 14.08 71.5% (27.2%)

GasLog Partners 19.80 76.8% (22.8%)

Golar LNG Partners 16.88 58.5% (38.6%)

Höegh LNG Partners LP 17.72 75.5% (20.5%)

KNOT Offshore Partners 18.53 77.6% (22.0%)

Navios Maritime Midstream 11.85 66.2% (33.1%)

Navios Maritime Partners 1.38 11.5% (87.2%)

Teekay LNG Partners 14.07 39.8% (60.3%)

Teekay Offshore Partners 6.15 27.4% (73.0%)

Mean 53.5% (45.4%)

10


Shipping MLP Universe Equity Comparables ($Millions, except per share data)


Stock Total TEV / EBITDA P / E Dist Cash Yield Dividend YieldPrice % 52-Week Market Enterprise

5/27/2016 High Cap Value

Capital Product Partners 2.78$ 30.1% 332.6$ 984.5$ 6.5x 6.3x 6.7x 6.7x 38.7% 39.9% 10.8% 10.8%

Dynagas LNG Partners LP 14.08 71.5% 500.2 1,252.2 9.5x 10.5x 7.7x 9.3x 19.4% 17.7% 12.3% 12.3%

GasLog Partners 19.80 76.8% 639.4 1,310.9 9.1x 8.3x 9.1x 8.9x 21.2% 20.7% 9.7% 9.8%

Golar LNG Partners 16.88 58.5% 1,060.6 2,417.9 6.4x 6.0x 6.3x 5.8x 30.2% 31.7% 13.7% 13.7%

Höegh LNG Partners LP 17.72 75.5% 466.3 854.0 11.1x 7.4x 9.5x 8.4x 11.0% 13.0% 9.5% 10.0%

KNOT Offshore Partners 18.53 77.6% 514.3 1,159.4 8.7x 8.3x 10.1x 9.9x 18.7% 19.9% 11.2% 11.3%

Navios Martime Partners 1.38 11.5% 117.0 665.2 5.6x 5.6x 9.2x 7.5x 83.8% 85.5% NA NA

Navios Maritime Midstream 11.85 66.2% 245.2 404.8 6.0x 5.8x 8.0x 7.9x 22.5% 21.6% 14.3% 14.5%

Teekay LNG Partners 14.07 39.8% 1,119.6 3,154.8 9.8x 8.8x 6.6x 5.5x 24.9% 28.0% 4.0% 4.0%

Teekay Offshore Partners 6.15 27.4% 658.8 4,196.7 6.5x 5.7x 4.2x 3.1x 67.5% 78.5% 7.2% 7.1%

Mean 7.9x 7.3x 7.8x 7.3x 33.8% 35.7% 10.3% 10.4%

2016E 2017E2016E 2017E 2016E 2017E 2016E 2017E

11


Equity Market Conditions

12


Equity Market Backdrop

Markets Bouncing Off February Bottoms

Global Equity Returns – 2016 YTD

Source: CapIQ.

Volatility Measurements

(20%)

(12%)

(5%)

(4%)

(1%)

0%

1%

3%

3%

13%

(30%) (15%) 0% 15% 30%

Shanghai

Nikkei

EURO STOXX

DAX

NASDAQ

FTSE

RUSSELL 2000

Dow Jones

S&P 500

Brazil Bovespa

Source: CapIQ.

Key Points

Markets have stabilized after a volatile start to 2016

─ First quarter since Q4 1933 the S&P 500 finished up after trading down >10%

─ S&P 500 was up on average two out of every three days in March and April

Since February 11th bottom:

─ S&P 500: +14.8%

─ Russell 2000: +15.9%

─ NASDAQ: +15.6%

─ Volatility (VIX): (53.4)%

U.S. Sector Returns – 2016 YTD

(13%)

0%

0%

2%

2%

4%

5%

7%

8%

(30%)(20%)(10%) 0% 10%

Healthcare

FIG

Technology

Consumer

Media

Real Estate

Telecom

Energy

Industrials

Equity Returns By Mkt. Cap. – 2016 YTD

(5%)

5%

6%

5%

(30%)(20%)(10%) 0% 10%

<$1 billion

$1 billion -$5 billion

$5 billion -$10 billion

>$10 billion

Source: CapIQ. Source: CapIQ.

U.S. Fund Flows

CBOE VIX

S&P 500 Intraday Movements

Source: CapIQ. Bloomberg.

0bps100bps200bps300bps400bps500bps600bps

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M

10.0

20.0

30.0

40.0

50.0

J F M A M J J A S O N D J F M A M J J A S O N D J F M A M

VIX

Inde

x Va

lue

Current VIX: 13.1

Avg. May Move: 88 bps

Fund Flows

Sector Fund Flows 5/25/16

(15,000)

(5,000)

5,000

15,000

1/6

1/1

31

/20

1/2

72

/32

/10

2/1

72

/24

3/2

3/9

3/1

63

/23

3/3

04

/64

/13

4/2

04

/27

5/4

5/1

15

/18

5/2

5

(1,000)(500)

0500

1,000

13


U.S. IPO Market Overview Key Points

Increased volatility has negatively impacted the U.S. IPO market to start 2016

26 U.S. IPOs have priced raising $5.6bn in proceeds in 2016

─ 13 out of 26 have been Healthcare transactions with pre-launch indications of interest from insiders or anchor orders

─ 17 out of 26 priced within the filing range

13 U.S. IPOs have been withdrawn after launching formal IPO roadshows

─ Decision to postpone largely attributed to books building below IPO filing range

─ Only six out of sixteen IPOs ≤$75 million has priced

Despite volatility new public IPO filings have continued at a similar pace and issuers are keeping S-1/F-1 filings current

Source: Dealogic. Excludes closed end funds, financings/acquisitions, capital pool companies, SPACs and deals under $20 million. (1) Withdrawn / Postponed data reflects only marketed deals.

Recent U.S. IPO Activity (1)

U.S. Market Activity Comparison – Year to Date

4.8%

16.4%

3.3% 3.0% 2.7%

2012 2013 2014 2015 2016

U.S. IPO Activity Comparison – Year to Date

16

3 6

15 13

2012 2013 2014 2015 2016

67 82

156

83 31

2012 2013 2014 2015 2016

S&P 500 Performance Avg. CBOE VIX Index Avg. S&P 500 Intraday Move

U.S. IPOs Priced U.S. IPOs Withdrawn After Marketing U.S. IPO Filings

1.0% 0.9% 0.9% 1.0% 1.3%

2012 2013 2014 2015 2016

68 71 114

62 26

2012 2013 2014 2015 2016

18.6 13.6 14.3 15.4 18.1

2012 2013 2014 2015 2016

Price/With Deal Mkt % of % Pricing v. Offer-to-

Date Issuer Value ($m) Cap ($m) Mkt Cap Sec. Range Sector 1-Day Current

05/25/16 Cotiviti Holdings Inc 237.5 1,704.9 13.9% - In Range TMT (10.0%) (6.1%)

05/25/16 GMS Inc 147.0 837.8 17.5% - In Range Industrials 4.3% 7.1%

05/25/16 Reata Pharmaceuticals Inc 69.6 236.5 29.4% - Below Healthcare 18.8% 29.8%

05/25/16 US Foods Holding Corp 1,022.2 4,913.5 20.8% - In Range Consumer 8.3% 8.8%

05/23/16 Midland States Bancorp Inc 80.1 326.7 24.5% 16.3% Below Finance (0.5%) 1.9%

05/18/16 Grupo Supervielle SA 322.6 758.2 42.5% 25.0% In Range Finance 4.6% 3.8%

05/18/16 Merus BV 61.4 154.1 39.9% - Below Healthcare 0.4% (23.8%)

05/17/16 Pulse Biosciences Inc 20.0 50.3 39.8% - In Range Healthcare 4.3% 7.8%

05/12/16 Acacia Communications Inc 119.0 820.1 14.5% - In Range TMT 34.6% 65.2%

05/12/16 Oncobiologics Inc 35.0 125.9 27.8% - Below Healthcare (20.0%) (12.5%)

05/11/16 SiteOne Landscape Supply Inc 241.5 830.4 29.1% 100.0% In Range Industrials 27.0% 33.0%

05/11/16 Turning Point Brands Inc 54.0 159.6 33.8% - Below Consumer 1.2% 7.2%

05/11/16 Viamet Pharmaceuticals Inc 85.5 389.4 22.0% - Withdrawn Healthcare - -

05/05/16 Intellia Therapeutics Inc 124.2 631.7 19.7% - In Range Healthcare 22.8% 63.9%

04/26/16 Red Rock Resorts Inc 579.3 2,259.2 25.6% 0.7% In Range Consumer (4.1%) 3.1%

04/26/16 Yintech Investment Holdings Ltd 101.3 786.3 12.9% - In Range Finance 0.0% (7.6%)

04/21/16 SecureWorks Corp 112.0 1,129.4 9.9% - Below TMT 0.0% (1.9%)

04/20/16 American Renal Associates Holdings Inc 189.8 653.8 29.0% - In Range Healthcare 20.5% 23.6%

04/19/16 MGM Growth Properties LLC 1,207.5 4,369.5 27.6% - In Range Real Estate 4.8% 9.7%

04/15/16 BioCardia Inc 50.0 145.7 34.3% - Withdrawn Healthcare - -

20 Deals Mean: $243.0 $1,064.1 25.7% 35.5% A/I: 66.7% 6.5% 11.8%

Median: $115.5 $706.0 26.6% 20.7% W: 10.0% 4.3% 7.2%

14


U.S. Follow-on Market Overview

Issuance by Sector

Source: Dealogic. Excludes transactions less than $20.0 million.

Marketing Type Key Points

More diverse, balanced equity issuance trends in 2016 as the Energy and Real Estate sectors have joined the Healthcare sector as leaders in the follow-on market

By number of deals, stated use of proceeds has been balanced to start the year, however acquisition financing has accounted for 19% of dollars raised

File-to-offer discounts widened amid volatility but have begun to normalize

Use of Proceeds

28%

48%

63%

47%

9%

5%

0% 50% 100%

2015

2016

Block Accelerated Marketed

Primary Follow-on File-to-Offer Discounts

Secondary Follow-on File-to-Offer Discounts

Primary Block All-in-Discounts

Secondary Block All-in-Discounts

(5.9%) (5.2%)

(13.3%) (10.0%) (8.6%)

nm

(5.4%) (4.3%) (7.3%)

(9.7%)

2015 2016 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16

(7.4%) (10.3%)

(6.9%) (9.0%)

(6.0%)

(14.6%) (10.9%)

(6.6%) (9.1%) (9.5%)


(5.9%) (7.5%) (7.0%) (5.3%)

nm

(7.3%) (9.1%)

(6.9%) (6.0%) (8.0%)


(3.8%) (4.9%) (3.5%) (3.3%) (3.2%) (3.2%) (2.1%)

(6.3%) (3.9%) (3.4%)


46

11

88

48

60

9

207

37

50 73

36

80

12

0% 50% 100%

2015

2016

Consumer Energy Finance Healthcare

Industrials Real Estate TMT

85

22

171

45

3 64

30

29

10

52

10

61

12

139

48

0% 50% 100%

2015

2016

Acquisitions Secondary Buyback

Repay Debt CAPEX Working Capital

R&D General

2016 YTD: 178 Deals / $65.4bn

2015 YTD: 341 Deals / $109.1bn

FY 2015: 617 Deals / $188.9bn

15


Debt Market Update

16


Debt Market Overview

Source: Standard & Poor’s LCD, Jefferies Leveraged Finance Group.

New Bank Loan Syndications – Last Twelve Months High Yield Debt Issuance – Last Twelve Weeks

High Yield Mutual Fund Flows – Last Twelve Weeks

$47.2

$62.3

$23.6

$30.3 $31.1 $27.1

$10.5

$35.8

$18.7

$30.3 $31.8

$42.2

-

10

20

30

40

50

60

70

80

-

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

$70.0

Num

ber of Deals

$Bill

ions

Bank Deals Bank Deals

$3,225 $2,575

$5,750

$8,245

$10,940

$3,350

$9,275

$6,250

$3,765

$6,875 $6,650

$11,205

-

5

10

15

20

25

-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

Num

ber of Deals

$Mill

ions

Weekly Issuance

$1,796 $1,700

$2,156

($545)

$1,200

$85 $410 $296

($1,807) ($1,900)

$1,100

($562)

($2,500)

($2,000)

($1,500)

($1,000)

($500)

-

$500

$1,000

$1,500

$2,000

$2,500

$M

illio

ns

17


Debt Market Overview

Source: Standard & Poor’s LCD, Jefferies Leveraged Finance Group.

Market Metrics

Market Metrics: Pull This Week and Last Week from Bloomberg (US0003M, CT5 Govt, CT30 Govt, Prime)

Pull One Year Ago from Leveraged Finance Weekly (or all if available)

Bank Loan Secondary Spreads – Last Twelve Months High Yield Broad Market Index – Last Twelve Months

This Week Last Week One Year Ago

3 Month LIBOR 0.69% 0.65% 0.28%Prime 3.50% 3.50% 3.25%5 year Treasuries 1.38% 1.38% 1.52%30 year Treasuries 2.65% 2.64% 2.89%

-

L + 250

L + 500

L + 750

L + 1,000

Spr

ead

All BB/B BB B

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

10.00%

11.00%

5/15 7/15 8/15 10/15 11/15 1/16 3/16 4/16

YTW

B BB

18


Maritime Bonds

Source: CapitalIQ and Bloomberg.

NotesPrice YTW STW Maturity Ratings Outstanding ($mm)

CMA CGM8.750% Sr Nts due '18 90.000 13.53% 13.45% 12/15/2018 Caa1 / B- 300€ 7.750% Sr Nts due '21 75.000 15.52% 15.45% 1/15/2021 Caa1 / B- 550€

Eletson Holdings Inc.9.625% Secured due '22 78.750 15.40% 14.06% 1/15/2022 B3 / B 300$

Global Ship Lease10% Sr Notes due '19 87.500 15.61% 14.53% 4/1/2019 B3 / B 420$

Great Lakes Dredge & Dock7.375% Sr Sub Nts due '19 94.750 9.65% 8.46% 2/1/2019 Caa1 / B 275$

Gulfmark Offshore6.375% Sr Nts due '22 48.000 23.10% 0.00% 3/15/2022 B1 / BB- -$

Hapag-Lloyd9.75% Sr Nts due '17 101.460 5.64% 4.61% 10/15/2017 Caa1 / B- 125$

Hornbeck Offshore Services5.875% Sr Nts due '20 61.000 21.25% 20.10% 4/1/2020 Ba3 / BB- 375$ 5% Sr Nts due '21 56.500 19.43% 17.42% 3/1/2021 Ba3 / BB- 450$

Navios Maritime Acquisition8.125% Sr Nts due '21 81.750 12.88% 11.43% 11/15/2021 B3 / B+ 670$

Navios Maritime Holdings8.125% Sr Nts due '19 36.625 56.41% 54.77% 2/15/2019 Caa1 / B+ 350$ 7.375% Sr Sec Nts due '22 41.750 28.94% 27.11% 1/15/2022 B1 / BB- 650$

Navios South American Logistics7.25% Sr Nts due '22 62.750 17.64% 16.31% 5/1/2022 B2 / B+ 375$

Overseas Shipholding Group8.125% Sr Nts due '18 100.000 8.11% 7.26% 3/30/2018 Caa1 / BB- 119$

Royal Caribbean Lines5.25% Sr Nts due '22 104.750 4.40% 0.00% 11/15/2022 Ba1 / BB -$

Stena International5.75% Sr Sec Nts due '24 85.000 8.42% 6.55% 3/1/2024 Ba2 / BB+ 350$

Teekay Corporation8.5% Sr Nts due '20 80.000 15.98% 14.34% 1/15/2020 B2 / B+ 393$

Ultrapetrol Limited8.875% Sr Sec due '21 18.000 80.66% 65.37% 6/15/2021 B3 / B 225$

Windsor Petroleum Transport (FRO)7.84% Secured due '21 82.000 12.86% 14.35% 1/15/2021 – / – 155$

19


Maritime Retail / Preferred Securities

Source: Bloomberg.

Amount Yield at Strip Yield Delta Since Dirty Price

Issue Date Issuer ($M) Offer 27-May Offer 27-May % of Par

Retail Bonds

05/20/15 Diana Shipping $55.0 8.500% 10.380% 1.880% $20.50 82.000%09/11/14 Scorpio Bulkers 65.0 7.500% 10.623% 3.123% 17.50 70.000%10/28/14 Scorpio Tankers 51.8 7.500% 7.544% 0.044% 25.15 100.600%05/07/14 Scorpio Tankers 50.0 6.750% 7.382% 0.632% 22.80 91.200%03/27/14 Seaspan 345.0 6.375% 6.376% 0.001% 25.40 101.600%10/30/14 Star Bulk Carriers 50.0 8.000% 13.649% 5.649% 14.85 59.400%

Preferred

07/26/13 Box Ships $14.0 9.000% 12.439% 3.447% $3.00 12.000%

05/06/15 Costamare 100.0 8.750% 11.042% 2.292% 20.33 81.320%

01/13/14 Costamare 100.0 8.500% 10.752% 2.252% 20.00 80.000%

07/30/13 Costamare 50.0 7.625% 9.750% 2.125% 20.01 80.048%

02/10/14 Diana Shipping 65.0 8.875% 15.091% 6.216% 15.11 60.428%

07/13/15 Dynagas LNG Partners 75.0 9.000% 10.054% 1.054% 22.99 91.960%

03/30/15 GasLog 115.0 8.750% 9.432% 0.682% 23.55 94.219%

08/13/14 Global Ship Lease 35.0 8.750% 16.919% 8.169% 13.74 54.960%

07/25/13 International Shipholding Corp 31.6 9.000% 9.240% 0.240% 22.15 22.150%

02/14/13 International Shipholding Corp 25.0 9.500% 43.684% 34.184% 22.50 22.500%

06/30/14 Navios Maritime Holdings 120.0 8.625% 60.323% 51.698% 4.06 16.240%

01/21/14 Navios Maritime Holdings 50.0 8.750% 53.222% 44.472% 4.80 19.200%06/23/14 Safe Bulkers 80.0 8.000% 9.956% 1.956% 11.74 46.960%04/30/14 Safe Bulkers 57.5 8.000% 16.129% 8.129% 12.60 50.400%06/06/13 Safe Bulkers 40.0 8.000% 9.390% 1.390% 21.50 86.000%2/6/2014 Seaspan 135.0 8.250% 8.208% (0.042%) 25.37 101.480%12/06/12 Seaspan 127.6 7.950% 7.935% (0.015%) 25.19 100.760%12/06/12 Seaspan 127.6 7.950% 7.935% (0.015%) 25.19 100.760%01/21/11 Seaspan 350.0 9.500% 9.473% (0.027%) 25.29 101.160%04/13/15 Teekay Offshore Partners 125.0 8.500% 10.698% 2.198% 20.00 80.000%04/23/13 Teekay Offshore Partners 150.0 7.250% 9.675% 2.425% 18.71 74.840%04/22/15 Tsakos Energy Navigation 85.0 8.750% 9.664% 0.914% 22.70 90.800%09/26/13 Tsakos Energy Navigation 50.0 8.875% 8.939% 0.064% 25.05 100.200%05/02/13 Tsakos Energy Navigation 50.0 8.000% 8.169% 0.169% 24.95 99.800%

20

Documents

Jefferies Maritime Group