EFTA01455448.pdf

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