Medley Management Inc · OTC:MDLM
Medley Management — Merger or Acquisition (August 2018)
12 slides from Medley Management's merger presentation, Aug 9, 2018
Slide 1: Sierra, Medley Capital and Medley Management Merger Overview
Investor Presentation Sierra Income Corporation, Medley Capital Corporation and Medley Management Inc. Merger Overview August 2018
Slide 2: Forward-Looking Statements
This communication contains “forward - looking” statements as that term is defined in Section 27 A of the Securities Act of 1933 , as amended, and Section 21 E of the Securities Exchange Act of 1934 , as amended by the Private Securities Litigation Reform Act of 1995 , including statements regarding
Slide 3: Additional Information and Where to Find It
Additional Information and Where to Find It In connection with the proposed transactions, Sierra intends to file with the SEC and mail to its stockholders a Registration Statement on Form N - 14 that will include a proxy statement and that also will constitute a prospectus of Sierra, and MCC and Med
Slide 4: Transaction Rationale
The combination of Sierra Income Corp. (“Sierra”), Medley Capital Corp. (“MCC”), and Medley Management Inc. (“Medley”) will create a leading, publicly - traded internally managed BDC Transaction Rationale Source: MDLY management 1. SNL Financial as of August 7 , 2018 2. Estimates of Sierra’s post -
Slide 5: Transaction Results in Increased Scale
Transaction Results in Increased Scale Transaction would create the 2nd largest internally managed and the 7th largest publicly traded BDC Page 5 Source: SNL Financial, Company Filings Note: Figures are in millions. Market data as of August 7, 2018; selected peer set includes any BDC with assets gre
Slide 6: Pro-forma Leadership Team
Pro - forma Leadership Team 2023 Notes (MCV) $89.9 SBA Debenture Notes $95.0 SBA Debenture Notes $50.0 2021 Notes (MCX) $74.0 MCC - ING Revolver $1.5 2024 Notes $30.3 2024 Notes $30.3 2024 Notes $30.3 2024 Notes $30.3 Alpine Revolver - $240.0 SIC - ING Revolver $145.0 The senior executive team will
Slide 7: Transaction Summary
Transaction Summary Source: Medley management; MCC, Sierra and Medley estimates per Medley management 1 . Estimates of Sierra’s post - merger financial position are based on the publicly reported financial information of Sierra, MCC an d MDLY as of June 30, 2018. Structure • C ombination of Sierra,
Slide 8: Current Structure
Current Structure Page 8 Sierra Advisory Contract SIC Advisors Other Advisory Entities Private Funds and SMAs, Etc. MDLY (NYSE: MDLY) Unitholders Medley LLC MCC (NYSE: MCC) MCC Advisors Advisory Contract Advisory Contracts Source: Medley management
Slide 9: Pro-Forma Structure
Pro - Forma Structure Pro - Forma Sierra Transaction Highlights • Sierra is the acquirer of both Medley and MCC • MCC merges with and into Sierra for c ommon s tock − 0.8050 Sierra shares per MCC share − Total value to MCC shareholders depends on the market valuation of Sierra at listing • Medley ac
Slide 10: Sierra Pro-Forma Portfolio Summary
14% 10% 8% 7% 6% 6% 4% 4% 4% 4% 33% Services: Business Healthcare & Pharmaceuticals High Tech Industries Construction & Building Banking, Finance, Insurance & Real Estate Aerospace & Defense Hotels, Gaming & Leisure Automotive Wholesale Energy: Oil & gas Other (20 Industries) 76% 12% 8% 4% First Lie
Slide 11: Combined Debt Maturity Profile
$- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 2018 2019 2020 2021 2022 2023 2024 2025 USD in Millions Combined Debt Maturity Profile Page 11 Source : Medley management; MCC, Sierra and Medley estimates per Medley management . 1. Estimates of Sierra’s post - merger financial position are based on the p
Slide 12: Summary
Summary Page 12 The combination of Sierra, MCC and Medley will create a leading, publicly - traded internally managed BDC Source: MDLY management 1. SNL Financial as of August 7, 2018. Creates the 2nd largest internally managed and 7th largest publicly traded BDC 1 1 Creates a single, larger, divers
Medley Management — Merger or Acquisition (August 2018) on 6ix