PE sponsors ramp up delay draw term loans in the U.S. middle market Over the last few years, sponsors have been ramping up the amount of delay draw term loans within their middle market M&A transactions. In 2Q19, LPC tracked US$3.1bn in delay draw term loan volume within middle market sponsored finance which is the…
Source: LevFin Insights Source: LevFin Insights Source: Lipper Contact: Robert Polenberg robert.polenberg@levfininsights.com
Over half of sponsored transactions are displaying greater than 10x purchase price multiples.
Risk premium for second-lien loans widens Source: Debtwire Par The risk premium for second-lien loans has widened in recent months. For borrowers that issued both a first-lien and second-lien loan, the margin differential has climbed to 400bps so far in 3Q19, up from 387bps in 2Q19 and 341bps in 1Q19…. Subscribe to Read MoreAlready a
“How do you come up with all the ideas for your columns?” That’s a question we frequently hear from readers. Our answer is that we don’t have to come up with them. They present themselves all week, every week. We just watch and listen. Take this week. End of July often involves water-related activities. For…
Contact: Marina Lukatsky marina.lukatsky@spglobal.com
Private Debt Dry Powder Falls in Q2 The available capital held by private debt fund managers fell in Q2, reflecting the slower pace of fundraising. Having grown from $278bn at the end of 2018 to $286bn at the end of Q1, dry powder fell to $269bn in the three months to the end of June….
Deals with no LIBOR floor or 0% floor decline slightly in July Libor rates have been on the decline this year. As of July 24, the 3-month Libor rate was 2.27%, 54bp below its 2018 year-end level. So far in July, the average Libor rate is 2.3% down from 2.51% in 2Q19. And investors might…
