Title MER Loan and HY Bonds.pdf ✅

Discussion Materials for: Dallas CPA Society May 26, 2011 Raising Capital in Today’s Market
2 1. Current Economic Climate 2. Middle Market Bank Financing 3. Asset Based Loan Market 4. Syndicated Loan Market A. Investment Grade B. Leveraged Loans 5. Capital Markets A. High Yield Debt B. Mezzanine Table of Contents
Current Economic Climate
US Recovery Gains Momentum but Unemployment High ■ Real GDP to grow 2.5% to 3% in 2011 despite ongoing housing problems  Stronger consumption will stimulate production, jobs  Rapid rebounds in exports and business investment in equipment & software  Corporate profits and cash flows rebound sharply  No. African & Middle East tensions boost oil prices, restraining pace of rebound ■ Employment gains strengthen gradually, and unemployment rate begins to fall from very high levels ■ Household sector deleveraging ■ Core inflation to rise only modestly while commodity prices soar  10-yr treasury rate – key driver of U.S. housing – expected to increase to 4%  Uncertainty still remains Key Themes 4