Recent LBO deal trends

• Average size of LBOs has fallen to under $1 billion from $2.1 billion in 2007.
• Average equity contribution in leveraged buyouts has increased from 33% in 2006-2007 to 42% in 1Q08, which is near levels seen in 2001-2003.
• Difference (in terms of EBITDA multiple) between what sellers willing to sell for and what lenders are willing to finance has increased.
• Leverage/Coverage metrics have improved.
• Average Debt/EBITDA multiple in large corporate LBO loans has decreased from 6.2x in 2007 to 5.1x in 1Q08.
• Average interest coverage ratio in large corporate LBO loans has increased only slightly (due to wider spreads) to 2.2x in 1Q08 from 2.1x in 2007.
• Structures of loans have become more stringent due to significant increase in the use of LIBOR floors, Financial tests, Restricted payments language and no covenant lite loans.