Lender Survey: How are you feeling about portfolio performance? Issuers are showing flat to very slow growth but performance is stable, said 72% of the buyside and sellside respondents in TR LPC’s Quarter-End Survey. The remainder are split with 14% reporting that issuers are showing strong financial performance and growth has picked up while 14%…
1-3Q17 Leveraged loan volume sets new record at $994Bn Amid the traditional summer lull, US syndicated loan issuance slowed meaningfully in 3Q17 to push less than $475B through the market and boosting US totals to $1.75T for the first nine months of the year (and additional US$42B of clubbed loans have also been completed so…
Lender Survey: Are the structural characteristics of loans changing for good? Just over half of the audience gathered during Thomson Reuters LPC’s 23rd Annual Loan & CLO Conference said that structures have not changed for good but rather the pendulum will swing back when credit quality deteriorates. However, just over one fifth disagreed, reporting that…
Toys ‘R’ Us bankruptcy pushes DIP loan issuance to the highest level since 2009 Toys ‘R’ Us launched a US$3.125bn debtor-in-possession (DIP) facility this week after filing for Chapter 11 protection on Monday. If the deal goes through at the launch amounts, it would bring year to date DIP loan issuance to US$7.6bn across 13…
Middle market covenant lite deals exhibit higher leverage than covenanted deals Private equity shops who are purchasing large middle market credits with EBITDA $40M and above have many choices on how to finance their deals. Those sponsors that choose the institutional loan market seem to get the most flexibility. Middle market covenant lite volume has…
Leveraged market set to keep things rolling post-Labor Day The leveraged loan market has not looked like it will slow down anytime soon. Year-to-date completed issuance stands at US$972bn through the end of August. That is higher than any post-crisis year through 3Q while another roughly $35bn sits in the pipeline for September. While the…
Mixed earnings result in investors running from select BDCs BDC 2Q17 earnings season is in full swing and results have been extremely mixed keeping the landscape quite bifurcated. After returning to book value in 2Q17, the average share price to net asset value per share for the public BDCs has been back on the decline…
MM Fundraising hits US$35B YTD, on track to match 2016 levels Fundraising for middle market lending continues strong in 2017. Year to date LPC has tracked almost US$35 billion in inflows on the back of US$60B just last year. Direct lending funds continue to make up the biggest piece of the pie raking in 64%…
Yields of first/second-lien structures continue to tighten The average yield has widened to 5.46% so far in 3Q17 from 4.96% in 2Q17. One of the reasons behind widening yields is that while refinancings continue to lead activity, the share of M&A credits has increased to 40% of the institutional tranches priced so far this quarter….
Leverage peaks in the middle market across capital structures in 1H17 With market conditions extremely heated, leverage levels have peaked across most capital structures in the middle market in 1H17. The “all senior” capital structure hit a new peak at 3.83 times in 1H17, up from 3.79 times last year and from 3.41 times back…