Generational Opportunity in Distressed Debt with Jason Mudrick

A GENERATIONAL OPPORTUNITY IN DISTRESSED DEBT WITH JASON MUDRICK, FOUNDER AND CIO S T R I C T L Y C O N F I D E N T I A L .

This is the best distressed credit investment opportunity we ve seen in a generation. Jason Mudrick, Founder & CIO of Mudrick Capital Management S T R I C T L Y C O N F I D E N T I A L .

INTEREST RATES HAVE BEEN DECLINING FOR OVER 40 YEARS UNTIL RECENTLY US Federal Funds Effective Rate % 1981-1982 Recession 1990-1991 Recession Dot-Com GFC COVID 12/31/1980: 22.00% 9/30/2023: 5.33% Mudrick Capital launch '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 Source: Bloomberg S T R I C T L Y C O N F I D E N T I A L .

LOW RATES, STIMULUS, & GROWTH HAVE BEEN UPWARD MULTIPLIER ON ASSET VALUATION Trading Multiples Have Expanded Over Time COVID S&P 500 Enterprise Value / Last 12 Months EBITDA x 12.5x 7.7x '08 '10 '12 '14 '16 '18 '20 '22 Source: Bloomberg S T R I C T L Y C O N F I D E N T I A L .

AND HAVE LED TO AN INCREASE IN PURCHASE MULTIPLES FOR PRIVATE COMPANIES Private Equity Buyout Valuations Have Increased Median US EV / EBITDA Multiples x 11.4x 11.1x 11.0x 11.0x 10.2x 10.2x 9.9x 9.7x 9.3x 8.5x 8.5x 8.4x 8.2x 7.6x 6.9x '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Source: Pitchbook S T R I C T L Y C O N F I D E N T I A L .

INVESTORS SEARCH FOR YIELD LED TO INCREASED FLOWS INTO PRIVATE EQUITY Growth of Private Equity Assets Under Management Global Private Equity Assets Under Management $Tn 7.6 6.8 5.3 4.3 3.6 3.1 2.6 2.4 2.3 2.2 2.0 1.8 1.7 1.6 1.5 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Source: Pitchbook S T R I C T L Y C O N F I D E N T I A L .

DEBT CAPITAL SUPPORTING SPONSORS WENT TOWARDS ACQUISITIONS AND REFI S Majority of Capital Serves Needs of Balance Sheets, Not Businesses Use of Leveraged Loan Proceeds (2014 2019) % Corporate Purposes 3% Recapitalization 8% Refinancing 51% M&A / LBO 38% Source: Pitchbook S T R I C T L Y C O N F I D E N T I A L .

INVESTORS HAVE NEEDED TO STRETCH FOR YIELD IN A LOW-RATE ENVIRONMENT Investors Require Additional Risk to Achieve Absolute Returns Estimates of What Investors Need to Earn 7.5% % 4% 12% 5% 14% 13% 5% 22% 20% 100% 8% 33% 52% 12% '95 '05 '15 Bonds Large-Cap Equity Small-Cap Equity Non-US Equity Real Estate Private Equity Source: Wall Street Journal, Pension Funds Pile on Risk Just to Get a Reasonable Return S T R I C T L Y C O N F I D E N T I A L .

SPONSORS HAVE BEEN ABLE TO ACHIEVE HIGHER LEVELS OF DEBT FINANCING New Issue Leverage Has Grown Substantially Debt-to-Adj. EBITDA Ratio of New Issuances x 5.3x 5.2x 5.2x 5.2x 5.1x 5.1x 5.1x 5.0x 4.9x 4.6x 4.6x 4.5x Average = 4.5x 4.3x 4.3x 4.2x 4.1x 4.1x 4.0x 3.9x 3.9x 3.8x 3.7x '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 Source: Pitchbook S T R I C T L Y C O N F I D E N T I A L .

ADJUSTED EBITDA METRICS UNDERSTATES TRUE LEVERAGE ON A COMPANY Two-thirds of Loans are Levered over 6x and Almost Half of Loans are Levered over 7x Estimated Leverage of New Leveraged Loans Excluding EBITDA Addbacks % 46% 20% 18% 12% 4% '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 <4.00x 4.00x-4.99x 5.00x-5.99x 6.00x-6.99x >7.00x Source: UBS Credit Research S T R I C T L Y C O N F I D E N T I A L .

COVENANT-LITE LOAN PRODUCTS GIVE SPONSORS AND COMPANIES MORE FLEXIBILITY TO STAY SOLVENT Cov-Lite Issuances Have Increased Covenant-Lite as % of Total Leveraged Loan Issuance % 93.1% 89.3% 87.0% 85.4% 81.5% 78.6% 71.8%74.4% 66.3% 50.5% 33.4% 25.5% 24.3% 8.8% 7.4% 4.7% 3.5% 1.3% 0.6% 0.5% 0.1% - - '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 Source: JP Morgan High Yield and Leveraged Loan Research S T R I C T L Y C O N F I D E N T I A L .

THE LEVERAGED CREDIT MARKET HAS GROWN EXPONENTIALLY The Leveraged Finance Market is $5.3 Trillion Today US and EU Leveraged Finance Market $Tn 5.4 5.3 4.8 4.2 4.1 3.8 3.6 3.6 3.4 3.1 2.7 2.5 2.4 2.2 2.1 2.0 1.7 1.4 1.3 1.2 1.1 1.0 0.8 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 High Yield Bonds Leveraged Loans Direct Lending S T R I C T L Y C O N F I D E N T I A L .

APPENDIX IMPORTANT NOTICES AND DISCLAIMERS The information contained herein is provided for informational and discussion purposes only, and is not, and may not be relied upon as, legal, tax or investment advice. This is not an offer to sell or a solicitation of an offer to buy interests in any fund described herein (a Fund ) or any other fund or account managed by Mudrick Capital Management, L.P. ( MudrickCapital ). Any such offer will only be made by means of a Confidential Offering Memorandum (the OfferingMemorandum ) and only in jurisdictions where permitted by law. It is the responsibility of any potential investor to satisfy itself as to the full compliance with applicable laws and regulations of any relevant jurisdiction. Investors should refer to the Offering Memorandum for more complete information, including investment risks, management fees, incentive allocations and fund expenses. Certain of these risks and potential conflicts of interest are described in the Appendix to this presentation, but prospective investors should also carefully consider the additional risk and conflicts of interest disclosures in the Offering Memorandum, which qualifies and supersedes the information contained herein in all respects. This presentation does not constitute part of the Offering Memorandum. A copy of the Offering Memorandum will be provided to you upon request. Investments in a Fund may be highly speculative and are not intended as a complete investment program. They are designed only for sophisticated persons who can bear the economic risk of the loss of their entire investment in such Fund and who have limited need for liquidity in their investment. There can be no assurance that any Fund will achieve its investment objective or return any capital. Past performance is not indicative of future results. Certain information contained herein has been prepared by Mudrick Capital internally and has not been independently audited or verified. The attached material is provided for informational purposes only as of the date hereof, is not complete, and may not contain certain material information about any Fund, including important disclosures and risk factors associated with an investment in such Fund. This information does not constitute investment advice and does not take into account the particular investment objectives or financial circumstances of any specific person who may receive it. Before making any investment, prospective investors should thoroughly and carefully review the applicable Fund s offering documents with their advisors to determine whether an investment in such Fund is suitable for them. This presentation includes confidential and proprietary information, and is provided solely with the express understanding that no information, business plans or participants will be disclosed to anyone except necessary persons in recipient s organization who are bound by obligations of confidentiality. No information herein may be reproduced or redistributed in any format without the express permission of Mudrick Capital. By accepting this material, you acknowledge that you are a self-directed, sophisticated investor, meet the requirements of a qualifiedpurchaser as defined under the Investment Company Act of 1940, as amended, and an accreditedinvestor as defined in Regulation D promulgated under the Securities Act of 1933, as amended. There is no guarantee that Mudrick will be able to acquire these investments for the Fund on suitable terms or at all. Yield to Worst ( YTW ) is not a projected return but rather a credit instrument metric that reflects the lowest possible expected return an investor can achieve from holding a particular credit instrument within its contract without defaulting. The YTW is not a minimum return and the return of any investment shown may be lower than the YTW, e.g., in the event of an issuer default. LTM refers to price performance over the past 12 months. EV/EBITDA Create is a distressed credit metric that helps determine what Mudrick believes is the minimum enterprise value at the time of investment as a multiple of EBIDTA. EV/EBITDA Create is calculated by taking take the market value of the class of debt instrument (and add the par value of all classes above it, if any) to obtain the createvalue , and then divide by last 12 months of EBITDA to get this metric. With respect to any target returns presented herein, such target returns are based on assumptions that Mudrick Capital currently believes are reasonable under the circumstances. There can be no assurance that such target returns will be achieved. Prospective investors should bear in mind that assumptions underlying target returns are hypothetical and actual results may vary materially from such assumptions and that such assumptions may not ultimately be applicable to the Fund s investment strategy. Accordingly, actual realized returns will depend on, among other factors, future results of the companies in which the Fund invests, market conditions at the time of disposition, legal and contractual restrictions, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions and circumstances on which the, assumptions and target returns herein are based. Accordingly, actual realized returns may differ materially from the target returns indicated herein. Interests in a Fund have not been and will not be registered under the Securities Act or the securities laws of any U.S. state or non-U.S. jurisdiction. The interests have not been recommended or approved by any U.S. federal or state or any non-U.S. securities commission or regulatory authority. Furthermore, the foregoing authorities have not passed upon the accuracy or determined the adequacy of the information contained herein. Any representation to the contrary is a criminal offense. This material contains information, including financial information, which is incomplete and is subject to further change. This material may include various forward-looking statements , including statements regarding the intent, opinion, belief or current expectations of Mudrick Capital with respect to, among other things, (i) goals and strategies, (ii) investments, (iii) marketing plans and target market, (iv) evaluation of securities or other investment markets, competition and competitive position, and (v) trends which may be expressed or implied by financial or other information or statements contained herein. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance and outcomes to be materially different from any future results, performance or outcomes expressed or implied by such forward-looking statements. Investors should not rely upon such forward-looking statements in making investment decisions. This material contains data, graphs, charts, and illustrations prepared by third parties not affiliated with Mudrick Capital. There may be inaccuracies, omissions and dated information contained in such third-party information and Mudrick Capital is not responsible for such errors and omissions or for the results obtained from the use of this information. All information provided on and through this material is provided asis, with no guarantee of completeness, accuracy, and timeliness, or of the results obtained from the use of this information. Additional information is available upon request. S T R I C T L Y C O N F I D E N T I A L .