Total leverage drops on 2023 US LBO deals

Chart

So far this year, US LBO activity has been very slow. Year-to-date syndicated LBO loan volume of around US$18bn is running 70% lower year-over-year. Meanwhile, total debt to Ebitda levels on large corporate LBO deals has dropped to an average of 6.2x this year, nearly a whole step lower than 2022’s 7.1x average, and the lowest mark since 2016.