First Trust Senior Floating Rate Income Fund II

Fair Value Summary

Metric	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035
% Growth	-8.04%	-6.70%	-5.37%	-4.03%	-2.69%	-1.35%	-0.01%	1.32%	2.66%	4.00%
Revenue	19.84	18.51	17.51	16.81	16.36	16.14	16.13	16.35	16.78	17.45
EBITDA	17.64	16.46	15.57	14.95	14.54	14.35	14.35	14.54	14.92	15.52
D&A	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
EBIT	17.64	16.46	15.57	14.95	14.54	14.35	14.35	14.54	14.92	15.52
Pro forma Taxes	-7.03	-6.55	-6.20	-5.95	-5.79	-5.72	-5.71	-5.79	-5.94	-6.18
NOPAT	10.61	9.90	9.37	8.99	8.75	8.63	8.63	8.75	8.98	9.34
Capital Expenditures	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
NWC Investment	-0.01	-0.01	-0.01	0.00	0.00	0.00	0.00	0.00	0.00	0.00
(+) D&A	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
Free Cash Flow	10.60	9.89	9.36	8.99	8.75	8.63	8.63	8.75	8.98	9.34
Diluted Shares Outstanding	32,479,235.00	32,479,235.00	32,479,235.00	32,479,235.00	32,479,235.00	32,479,235.00	32,479,235.00	32,479,235.00	32,479,235.00	32,479,235.00

Metric	May-26	May-27	May-28	May-29	May-30	May-31	May-32	May-33	May-34	May-35
Period Start	11/30/24	6/1/26	6/1/27	6/1/28	6/1/29	6/1/30	6/1/31	6/1/32	6/1/33	6/1/34
Period End	5/31/26	5/31/27	5/31/28	5/31/29	5/31/30	5/31/31	5/31/32	5/31/33	5/31/34	5/31/35
Mid-Point	8/30/25	11/30/26	11/30/27	11/30/28	11/30/29	11/30/30	11/30/31	11/30/32	11/30/33	11/30/34
Time (t)	0.10	0.87	1.87	2.87	3.87	4.87	5.87	6.87	7.87	8.87
Valuation Date	1/17/26

WACC: 9.10%Terminal Growth: 2.00%

Metric	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	TV (5y)	TV (10y)
Discount Factor	0.99	0.93	0.85	0.78	0.71	0.65	0.60	0.55	0.50	0.46
PV UFCF	10.51	9.17	7.96	7.00	6.25	5.65	5.18	4.81	4.53	4.31	Raw: 125.72 85.93	Raw: 134.24 59.36

WACC: 10.10%Terminal Growth: 1.50%

Metric	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	TV (5y)	TV (10y)
Discount Factor	0.99	0.92	0.84	0.76	0.69	0.63	0.57	0.52	0.47	0.43
PV UFCF	10.50	9.10	7.82	6.82	6.03	5.40	4.91	4.52	4.21	3.98	Raw: 103.28 67.83	Raw: 110.27 44.77

WACC: 8.10%Terminal Growth: 2.50%

Metric	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	TV (5y)	TV (10y)
Discount Factor	0.99	0.93	0.86	0.80	0.74	0.68	0.63	0.59	0.54	0.50
PV UFCF	10.52	9.25	8.10	7.19	6.47	5.91	5.46	5.12	4.87	4.68	Raw: 160.19 113.99	Raw: 171.04 82.46

Current Price$10.02

WACC Used9.1%

IMPLIED REVENUE GROWTH148.67%

Metric	2027	2028	2029	2030	2031	2032	2033	2034	2035	2036
Implied Revenue	141.64	352.22	875.87	2,178.02	5,416.07	13,468.12	33,491.10	83,282.13	207,097.21	514,987.45
Constant Implied Growth	148.67%	148.67%	148.67%	148.67%	148.67%	148.67%	148.67%	148.67%	148.67%	148.67%
Implied Free Cash Flow	0.01	0.04	0.09	0.22	0.54	1.35	3.35	8.33	20.71	51.50
Discount Factor	0.99	0.85	0.78	0.71	0.65	0.60	0.55	0.50	0.46	0.42
Present Value of Implied FCF	0.01	0.03	0.07	0.16	0.35	0.81	1.84	4.20	9.57	21.79

Valuation based on actual realized growth.

Year	Valuation Date	Actual Price	Realized Growth (5Y)	Calculated Fair Value	Valuation Delta
2014	2014-05-31	$14.00	-40.52%	$-5.17	-136.95%
2013	2013-05-31	$15.37	-16.21%	$-6.77	-144.06%

Mean Fair Value
$2.79

Median
$2.70

10th Percentile
$2.16

90th Percentile
$3.51