US Leveraged Loan Launches Taper from January Highs

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Leveraged loan launches have slowed from the record-breaking pace set in January when approximately $204.8b was brought to market for an all-time high. Through February 19th, $72.7b worth of deals have been marketed to investors, marking a significant slowdown month-over month. While February launches have struggled to keep up with the January record, the total is good for the fourth busiest February since 2013 with more than a week left in the month.

This week, while shortened by the Presidents’ Day Holiday in the US, just $11.7b loans have launched into syndication, the lowest level since October.

In another first since October – February saw the first leveraged loan pulled from syndication since Alegeus shelved a proposed $525mm broadly syndicated offering in favor of a direct lending transaction. This month, United Pacific pulled a $725mm term loan repricing, and in another sign of market froth, Townsquare Media widened the discount on its $470mm TLB to 500bps – the largest discount offered this year.

Contact: Vincent Daigger
vdaigger@bloomberg.net