REUTERS / Ammar Awad REUTERS / Clodagh Kilcoyne REUTERS / Dominic Ebenbichler REUTERS / Danish Ismail REUTERS / Dominic Ebenbichler REUTERS / Arnd Wiegmann REUTERS / Danish Ismail Runners and riders participate in the Christmas Ballyheigue beach horse races in the County Kerry village of Ballyheigue, Ireland.. REUTERS / Kristina Barker U.S. INVESTMENT GRADE MONTHLY January 2018 Thomson Reuters LPC Keeping the high grade loan market grounded David Puchowski Senior Market Analyst david.puchowski@tr.com

Investment grade scoreboard U.S. INVESTMENT GRADE MONTHLY - January 2018 Investment grade scoreboard *All dollar figures are in billions.  Issuance Type January 2018 January 2017 % difference Overall IG (refi plus new money)  $33.96 $25.57 +33% Refinancing  $31.79 $16.49 +93% New Money  $4.91 $9.08 -46% M&A  $2.175 $8.50 -74% Bridge loan  $.925 $0.00 - Source: thomson reuters lpc

U.S. investment grade loan issuance U.S. INVESTMENT GRADE MONTHLY - January 2018 U.S. investment grade loan issuance Refinancing activity helped drive January investment grade loan issuance to $34bn, 33% higher than January 2017’s total Source: thomson reuters lpc

U.S. investment grade: loan & bond issuance U.S. INVESTMENT GRADE MONTHLY - January 2018 U.S. investment grade: loan & bond issuance There was $108bn of corporate bond issuance in January, 37% lower than January 2017’s $172bn Source: thomson reuters lpc; Thomson Reuters

Investment grade new money & M&A issuance U.S. INVESTMENT GRADE MONTHLY - January 2018 Investment grade new money & M&A issuance New money issuance totaled just $4.9bn in January While a handful of acquisition financings are working their way through market, M&A issuance totaled only $2.2bn in January Source: thomson reuters lpc

Investment grade bridge loan issuance U.S. INVESTMENT GRADE MONTHLY - January 2018 Investment grade bridge loan issuance With M&A issuance muted in January, term loan issuance totaled only $5.8bn One bridge loan for $925m (Hubbell Inc) was credited in January Announced bridge loans for Dr. Pepper/Keurig, Wyndham Worldwide, Energizer Holdings, Assurant remain in market Source: thomson reuters lpc

Investment grade refi issuance stats U.S. INVESTMENT GRADE MONTHLY - January 2018 Investment grade refi issuance stats January 2018 refi issuance of $31.8bn was the second highest January in the last eight years Source: thomson reuters lpc

Investment grade issuance across industries U.S. INVESTMENT GRADE MONTHLY - January 2018 Investment grade issuance across industries Strong refinancing issuance helped drive oil and gas and utilities sector issuance totals to the top two spots in January Source: thomson reuters lpc

U.S. INVESTMENT GRADE MONTHLY - January 2018 Average weekly drawn & undrawn spreads on 364-day and multi-year revolvers 364-day drawn 364-day undrawn Multi-year drawn Multi-year undrawn Methodology: The grids consist of US based borrowers who have investment grade senior debt ratings issued through Moody's and S&P. Deals must be at least $100 million in size and pricing must be less than LIBOR+175 basis points. For underlying deals please see the I-Grade Pricing Grid page on LoanConnector Source: thomson reuters lpc

Average quarterly investment grade drawn and undrawn spreads U.S. INVESTMENT GRADE MONTHLY - January 2018 Average quarterly investment grade drawn and undrawn spreads Source: thomson reuters lpc

Average investment grade financial covenant levels U.S. INVESTMENT GRADE MONTHLY - January 2018 Average investment grade financial covenant levels Debt to EBITDA ratios in the investment grade market averaged 4x in 2017, the loosest year on record Ratio of debt to capitalization remained steady, averaging 0.61x last year Note: Data comprises a sample of the investment grade loan market. Underlying deals can be found within the Investment Grade covenant charts linked on the Historical Data page on LoanConnector Source: thomson reuters lpc

Market Based Pricing Snapshot U.S. INVESTMENT GRADE MONTHLY - January 2018 Market Based Pricing Snapshot Borrower name Rating Facility Type Facility Size ($b) Drawn spread is tied to: Floor Cap Deal Close Undrawn Stanley Black & Decker Inc A/Baa1 364-day 1.25 1-yr CDS 50 112.5 12/20/2017 7.0 Archer Daniels Midland Co A/A2 5yr RC 2.00 5-yr CDS 25 100 12/8/2017 3yr RC 1.50 3-yr CDS 4.0 Toyota Motor Credit Corp AA-/Aa3 5.00 75 150 11/13/2017 8.0 125 6.0 3.0 Procter & Gamble Co 4.80 10 11/9/2017 2.0 3.20 Deere & Co 0.75 10/24/2017 Cargill Inc 10/20/2017 Johnson & Johnson Inc AAA/Aaa 10.00 70 9/14/2017 Caterpillar Inc A/A3 3.15 9/7/2017 4.62 2.73 Automatic Data Processing AA/Aa3 2.25 40% of CDX 30 NA 6/14/2017 3.50 20 1.8 PepsiCo Inc A+/A1 3.75 6/5/2017 Wal-Mart Stores Inc AA/Aa2 5/31/2017 SBLC 1.75 7.50 Merck & Co Inc AA 6.00 5/23/2017 Honeywell International Inc 4.00 4/28/2017 Honeywell Int'l 1.5 Bristol Myers Squibb A+/A2 87.5 3/30/2017 United Parcel Service 3/24/2017 5.0 Walt Disney Co 2.5 3/10/2017 2/17/2017 4yr RC 2.50 4-yr CDS Stanley Black & Decker* 1/18/2017 *No MBP deals tracked so far in 2018 Source: thomson reuters lpc *Denotes clubbed deal

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