After a temperate first half, buyout deals to hit market in 3Q15 are pushing the boundaries with regards to leverage levels. Although deal flow remains light, large corporate LBO leverage levels have risen to 6.3 times so far in 3Q15, up from 6.01 and 5.99 times respectively in 2Q15 and 1Q15. The upward trend is driven by…
Commodities strain Latam corporate credit The recent commodity downturn has sent Latam corporate bond yields surging, just as the US looks set to raise interest rates. Brazil’s 5-yr CDS spread has widened 31bps over the past week as commodity slump hits Latam corporate bond yields have diverged from their emerging… Subscribe to Read MoreAlready a
Take-privates making a comeback? One of the big differences between today’s M&A boom and 2007’s comes down to which buyers were involved. Almost a decade ago, PE firms were the muscle behind M&A. Mega-buyouts in the $10B+ category were common, inflating overall deal activity to record levels. Today’s market is… Subscribe to Read MoreAlready a
M&A loan volume gets another boost via $27B bridge; Pipeline north of $90 billion The M&A loan market – and more specifically investment grade lenders – got a nice boost in the form of a $27 billion bridge loan backing Anthem Inc.’s $54.2 billion acquisition of Cigna Corp this week. The announced… Subscribe to Read MoreAlready a
The all-important deadline of July 20 has passed without incident, Greece having redeemed its debt to the ECB with the help of a bridging loan. This doesn’t mean the crisis in Greece is resolved – far from it – but it does give the market some breathing space. We remarked last week that China may…
Secondary buyouts are down by value but consistent by volume. With news of First Data going public, it’s worth remembering how few 2006-2008 PE investments ended up transferring to other PE sponsors, at least $10B+ companies. Realistically, those buyouts needed to be exited via IPOs or, in some cases, through… Subscribe to Read MoreAlready a
2Q15 ABL volume at lowest level in nearly 2 years; 1H15 total down 17% y-o-y ABL volume tumbled in 2Q15 to close out the period at just over $18 billion, the lowest quarterly volume results since 3Q13. 1H15 issuance settled at $38.5 billion, a drop of nearly 17% compared to the year ago period…. Subscribe
Greece’s position as the dominant driver of market sentiment has been unassailable in recent months. But there may be a hiatus if an agreement is reached on bridging finance for Greece, potentially leaving room for another theme to shape credit spread direction. If Greece does become a secondary consideration – and that is a very big…
Investment-to-Exit Ratio at Record Low While it’s true that PE firms remain hopeful buyers, and the number of deals has risen over the years, they’re much more active on the sell side today. Through June, the U.S. investment-to-exit ratio is at a record low 1.7x in 2015…. Subscribe to Read MoreAlready a member? Log in
After a very slow start to the year, leveraged lending picked up in 2Q15. Issuance of $233.3 billion was up 69 percent from 1Q15 levels. While issuance was down year-over-year, it only trailed by 10 percent, a lot lower than the 53 percent deficit recorded in 1Q15. On the heels of a very slow first…