EFTA01455448

Middle market loan origination Area of expertise: Structured finance and lending Theme: Structural solutions Overview: Middle market lending — Middle market loan transactions are typically driven by the need to finance dividend recaps and leveraged buyouts — DB works across various business types to provide BDC-style, middle market lending Key loan parameters — Loan size: $50mm-300mm — Duration: 3-5years, having financed up to 'Nears — Leverage: between 3.5-5.5x EBITDA — 3.5-4x for Senior — 5-5.5x for Mezzanine — Rates: Senior can range from 4-7%; Mezz can range from high single to low double digit yields — Fees: 1-1.5% upfront Company profile EBITDA range $15- 25mm Deutsche Asset & Wealth. Management Hard assets Industry agnostic but with focus on industrials & natural resources Case Study: Frac sand processing company — DB extended —$50mm of senior secured debt to a frac sand mining and processing company that was seeking to purchase reserves currently being mined under contract — Its senior secured structure included all assets of the company and its subsidiaries — Financing was structured in 3 phases (1 & 2 complete); upsize of up to -$50mm available upon meeting financial metrics, and its proceeds would be used for expansion and logistics improvements — Current off-take contracts and backlog of additional contracts to be executed as additional mines come online — Low risk expansion strategy, given agreed purchase price under option contract and basic, everyday construction processes required for logistics improvement Financing Amount Tenor Further draw conditions -$100mm (including potential upsize) 5 yrs — Completion of asset purchase — Certain financial metrics For Internal Use Only Economics Purpose Covenants High single digits Purchase of assets, logistics improvements, and working capital — Negative pledge — Minimum liquidity — Leverage ratio — Debt service coverage ratio — CapEx limits — Limited distributions 24 CONFIDENTIAL — PURSUANT TO FED. R. GRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0114213 SDNY_GM_00260397 EFTA01455448