IPAA Private Capital Conference Houston, Texas January 29, 2015 These presentation materials do not constitute an offer or invitation by or on behalf of Energy & Infrastructure Capital, LLC or any of its affiliates, to subscribe for…
Executive Summary 1 Who is EIC 2 How can we help 3 Market commentary 2 Prepared for IPAA Private Capital Conference
Who is EIC 3 Prepared for IPAA Private Capital Conference
EIC Overview EIC, an affiliate of Harbinger Group Inc. (NYSE: HRG), is an investment manager that was established in March 2014 to lend to the global energy and infrastructure sectors The platform focuses on three lending verticals:…
Corporate Profile HRG is a diversified NY-based holding company Market Cap(1): 2.7Bn EBITDA(1): 0.9Bn seeking to acquire and grow attractive businesses that generate sustainable free cash flow. Revenues(1): 6.0Bn Minority Consumer…
How can we help 6 Prepared for IPAA Private Capital Conference
EIC Within the Spectrum of Capital Options Cost of Capital 2x 5x MOIC Traditional Private Equity 20% 15% Traditional Mezzanine 12% 8% 5% Commercial Banks 2% Higher Lower Advance Rate 7 Prepared for IPAA Private…
Investment Approach (1 of 2) Looking to be a partner Relationship oriented approach; seeking follow-on opportunities and have ability to alter pricing/structure as risk profile changes No specific hurdle rate or fund life issues at…
Investment Approach (2 of 2) Likes Base of production and operating cash flow with some level of hedging Development drilling Management with relevant experience and skin in the game Tangible and measurable collateral Dislikes…
Market commentary 10 Prepared for IPAA Private Capital Conference
Recent Past April 30, 2014 December 2, 2014 Bloomberg: Shale Drillers Feast Bloomberg: Bonds Backing Shale on Junk Debt to Stay on Treadmill Boom Facing 11.6 Billion Loss Crude Oil (WTI) Bloomberg Energy HY Index 120 13% 110…
Energy New Issue Volume Key Points Energy High Yield New Issue Volume (in billions) New issue of high yield and 25 Secured Subordinated Unsecured second lien term loans remained robust in 2014 20 Yields continued to stay at 15…
Activity in 2015 Demand for capital in 2015 A&D will likely be driven by motivated sellers Some demand for development capital for companies with tight liquidity Refinancing / recap activity should be active Bank price decks…
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