Volatility primes more records for jumbo unitranche loans Jittery markets are priming new records for jumbo unitranche financing. At least a few mandates are in the works that exceed Galway Insurance’s $3.4 billion record last year. Expect jumbos to emerge in support of buyouts, particularly in the software, insurance and healthcare sectors. About half of…
Unitranche spreads, yields hit 2021 low in December Competition moved unitranche spreads 25 bps lower in December to an average of L+540, a monthly low in 2021, despite the stabilizing effect heavy volume in the fourth quarter had on pricing for smaller borrowers and non-unitranche LBO financing. The decline dropped all-in yields to 6.7%, also…
Direct Lending 2021 by Sector Contact: Kelly Thompsonkelly.thompson@dldeals.com
Private Market Steals Contact: Kelly Thompsonkelly.thompson@dldeals.com
Sponsors demanding larger DDTLs to act quickly in today’s buying bonanza Sponsors are demanding larger delayed-draw facilities so they can act quickly in today’s buying bonanza. Auctions have gone from a three-month process to about half that time or shorter in some cases. It’s much easier to hit a DDTL than go back to the…
Direct Lending Industries Year to Date Contact: Kelly Thompsonkelly.thompson@dldeals.com
At $2.3B, Calypso’s record unitranche demonstrates larger capacity for jumbos The $2.3 billion unitranche loan supporting Thoma Bravo’s acquisition of Calypso Technology has set a new record for size, but what’s even more notable is that the credit was assembled as new issue, not incrementally, like other recent unitranches that crossed the $2 billion threshold…
Twenty is the new 50; Cov-lite invasion continues into direct lending It’s no exaggeration that covenant-lite is invading direct lending. Market participants across the board say today’s cutoff is $20 million EBITDA, compared to $35-40 million pre-Covid, and $50 million prior to the Great Credit Crisis of ‘08. Last week DLD covered a covenant-lite buyout…
January volume soars on LBOs; Unitranche to feel broader pricing pressures January’s direct lending tally set a new high, up from the previous record in December. Momentum from the fourth quarter’s catch up rally continued to spill into the New Year, however deal flow has since decelerated to normal this month…. Subscribe to Read MoreAlready
Volume surged in December, strong M&A tone carries into first week of 2021 Direct lenders established a new high watermark for volume in December, setting the tone for an aggressive first quarter in 2021. Last month’s volume soared past every previous monthly tally since DLD launched in September 2019…. Subscribe to Read MoreAlready a member?