Slide 1: Medley Capital Corporation Investor Presentation
Medley Capital Corporation (NYSE: MCC) Investor Presentation Quarter Ended September 30, 2017
Slide 2: Important Notice
Important Notice This presentation contains “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties. Actual outcomes and results could differ materially from those suggested by this presentation du
Slide 3: Diversified AUM Across Multiple Funds
Diversified AUM Across Multiple Funds • Broad distribution through public and private vehicles • Permanent capital, long-dated funds and managed accounts not subject to traditional outflows MEDLEY (NYSE: MDLY) Public Vehicles Institutional Capital Medley Sierra Capital Long-Dated Funds and Income Co
Slide 4: Diversified Senior Secured Floating Rate Portfolio
Diversified Senior Secured Floating Rate Portfolio Investment Type Floating vs Fixed Rate1 16% 16% First Lien Fixed 16% Second Lien Floating Equities/Warrants 68% 84% Industry Geography2 2% Services: Business 2% 7% 7% Construction & Building 17% Healthcare & Pharmaceuticals 23% Midwest US 3% Banking
Slide 5: Portfolio by Issuer
Portfolio by Issuer Top 20 Investments: 64% MCC Senior Loan Strategy JV I LLC 7% Harrison Gypsum LLC 6% Nation Safe Drivers Holdings, Inc. NCM Group Holdings LLC 36% 4% United Road Towing Inc NVTN LLC 4% AAR Intermediate Holdings LLC Omnivere LLC 4% Capstone Nutrition DHISCO Electronic Distribution,
Slide 6: Well Positioned for a Rising Rate Environment
Well Positioned for a Rising Rate Environment • MCC is well positioned for a rising interest Assets rate environment 12/31/2011 9/30/2017 • 84% of the portfolio is floating rate • 66% of liabilities are fixed rate Fixed 16% • Favorable asset & liability mix Floating 34% Floating The weighted avera
Slide 7: Pro Forma Debt Maturity Profile
Pro Forma Debt Maturity Profile • MCC’s liabilities are well diversified with a staggered debt maturity profile $200.0 $150.0 ING Term Loan SBA $102.01 Debenture USD in Millions Notes $5.04 $100.0 $50.0 2021 2023 SBA SBA ING Notes Notes Debenture Debenture Revolver (MCX) (MCV) Note Notes $68.02 $74.
Slide 8: Attractive Industry Dynamics
Attractive Industry Dynamics
Slide 9: The Opportunity – Large Target Market
The Opportunity – Large Target Market • Standalone US middle market would rank as the 3rd largest global economy • Private equity dry powder continues to be elevated at all-time highs Top GDPs(1) Revenue: Private Equity Dry Powder(2) $500M - $1B $906 $16.8 $820 $755 $675 $690 $598 $562 $9.2 $6.7 $4.
Slide 10: The Opportunity – Large Number of Borrowers
The Opportunity – Large Number of Borrowers Number of Businesses by Market1 39,000 Revenue: 2,000 $500M - $1B Revenue: $50M - $500M Target Market: 37,000 2,600 Revenue: $1B+ Large Market Middle Market 1. U.S. Census Bureau, 2007 Economic Census. Page 10
Slide 11: The Opportunity – Bank Consolidation
The Opportunity – Bank Consolidation • Banks continue to shift toward large borrowers • Regulatory environment is a headwind for banks in the middle-market 11,000 70% U.S. FDIC Insured Commercial Banks 10,000 60% Bank Participation in Levered Loan Market (%) 9,000 50% 8,000 40% 7,000 30% 6,000 20% 5
Slide 12: Regulatory Pressure Continues for Banks
Regulatory Pressure Continues for Banks Level 3 Assets for Financial Firms(1) Total Assets of Publicly Traded BDCs(2) $200 $681 $150 Large Opportunity as Banks Continue to Exit Level 3 Assets $100 $50 $152 $0 2003 2005 2007 2009 2011 2013 2015 1Q17 3Q17 Illustrative 2007 3Q17 Potential for Growth To
Slide 13: MCC Financial Results
MCC Financial Results
Slide 14: Performance Overview
Performance Overview • Net investment income of $0.16 per share for the quarter ending 9/30/2017 • Net asset value of $8.45 per share for the quarter ending 9/30/2017 • Quarterly dividend of $0.16 per share for the quarter ending 9/30/2017 • 10.8% portfolio yield as of 9/30/20171 • Funded $56.1M in
Slide 15: Financial & Portfolio Highlights
Financial & Portfolio Highlights Financial Highlights 9/30/17 6/30/17 3/31/17 12/31/16 9/30/16 6/30/16 Net investment income per share $ 0.16 $ 0.18 $ 0.15 $ 0.19 $ 0.23 $ 0.20 Net realized gains (losses) per share (0.22) (1.01) - (0.12) (0.29) (0.53) Loss on extinguishment of Debt (0.01) - (0.01) -
Slide 16: Select Financial & Portfolio Information
Select Financial & Portfolio Information As of and for the Three Months Ended (dollars in millions, except per share data) 9/30/17 6/30/17 3/31/17 12/31/16 9/30/16 Net investment income per share - basic & diluted $ 0.16 $ 0.18 $ 0.15 $ 0.19 $ 0.23 Net realized and unrealized gains per share - basic
Slide 17: Balance Sheet
Balance Sheet As of (dollars in thousands, except per share data) 9/30/17 6/30/17 3/31/17 12/31/16 9/30/16 ASSETS (Audited) (Unaudited) (Unaudited) (Unaudited) (Audited) Investments at fair value Non-controlled/non-affiliated investments $ 575,496 $ 608,166 $ 717,295 $ 730,316 $ 767,302 Affiliated i
Slide 18: Corporate Information
Corporate Information Board of Directors Corporate Officers Research Coverage Corporate Headquarters BROOK TAUBE BROOK TAUBE BARCLAYS 280 Park Avenue, 6th Floor East Chairman & Chief Executive Officer Chairman & Chief Executive Officer Mark C. DeVries – (212)-526-9484 New York, NY 10017 (212)-759-07