EFTA01385428.pdf

3 January 2018 HY Corporate Credit HY Multi Sector,Medta, Cable & Satellite Outdoor Advertising: 'Outdoor Advertising: Core Revenue Pei formance & Guidance arrawaten 4031 Ira IOW wer d. am, 1417 CI! Otte ala • (0), awn alt. I. re Vaal la CO/ bawamat ..a.ler rik inaa cabana abana aaa a lap *amain Oa antaaa *agar haaaaaa aalte Ka Maas a mama .00 laalavamaillaaaa Cara mama ryy CCOA sender non Sr inward error Samar DaRICA• SIN 41.1malt14, Canary /Waal a aaaaatta can °AAA. Spree Fern Unlike certain other media sub-sectors, the Outdoor category is not facing an array of secular threats, and digital advances are helping not disrupting/hurting. Those attributes, combined with steady growth, attractive margins, and limited supply has kept outdoor credits in favor with investors over the years. And 2017 was no exception to this trend. Topics to keep an eye on: M&A activity (Clear Channel Outdoor has been a seller of assets), better measurement capabilities, expanded transit opportunities (driven by digital), and further disciplined expansion of digital billboard footprints (so as not to over-saturate inventory/supply). The positive attributes of the Outdoor sector mean that credits here continue to trade at the tight end of the media spectrum (not a new phenomenon) and inside the general high yield index (with the exception of CCO due to structural considerations). Despite that, we are drawn to these positive aspects, scarcity value of the assets, strong FCF characteristics, reasonably leveraged capital structures, and ample equity cushions for the debt. We recommend investors are market-weight this 'core-holding' sub-sector. Deutsche Bank Securities Inc. Page 153 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0086712 CONFIDENTIAL SDNY_GM_00232896 EFTA01385428