Discounts on first-lien institutional term loans haven’t been this wide since 2011. The average original issue discount (OID) is 98.02 so far this quarter, almost on par with 4Q15’s 97.98 average. Only 13% of first-lien institutional term loans have been done at an OID of 99.5 or narrower this quarter, slightly down from 16% last…
Despite hopes that 2016 would start off on stronger footing than 2015 closed, market volatility intensified in January. The Merrill Lynch HY Cash Pay Bond Index continued to demonstrate substantial downward pressure driven by macro volatility rooted in global growth prospects. Average bids hovered south of 86.5 by the end of last month, down from 89.16…
January CLO issuance down dramatically year over year CLO arrangers logged a mere 2 new issues totalling less than US$830 million in January 2016. This was down significantly compared to the year ago period during which over US$5 billion in new CLO vehicles were completed via 9 issues. The slowdown of CLO… Subscribe to Read
Libor floors, used to guarantee a minimum spread to investors in a low rate environment are now a major theme in the market given rising interest rates. In 2015, 98% of institutional term loans were issued with a Libor floor, the bulk of which were done… Subscribe to Read MoreAlready a member? Log in here...
Middle market lending failed to impress in 2015 as both the sponsored and non-sponsored markets were down roughly 30% year-over-year. In the non-sponsored market, volatility spooked issuers in the second half of the year causing many to hold off… Subscribe to Read MoreAlready a member? Log in here...
Private equity sponsors once again took a back seat to leveraged corporate issuers, struggling to garner 42% of total leveraged loan volume amid limited deal making opportunities. With demand for assets at a premium for much of the year, PE sponsors wrestled with… Subscribe to Read MoreAlready a member? Log in here...
At US$2trn, US syndicated loan issuance was down 6% compared to 2014. Leveraged loan issuance fell 17% in 2015 to US$783bn but this was offset by a 4% increase in investment grade lending which reached a record US$873bn. At $US740bn, US new money lending was the third-highest on record… Subscribe to Read MoreAlready a member?
The secondary market continues to come under pressure, with increased differentiation between the so called haves and have-nots. Flow names fell by roughly 100 bps in November and are off another 55 bps so far this month. At a broader market level, multi-quote institutional term loans also fell by around 100 bps in… Subscribe to
The average purchase price for large corporate LBO deals is still well below the large-scale deals struck during the buyout boom, but select mega deals are resurfacing. The average purchase price year to date for large corporate LBO deals is around $1.8 billion, slightly behind 2014 levels of $1.9 billion, but far lower… Subscribe to
Arrangers continue to show some discipline with regards to structuring LBO deals as the year comes closer to an end. The share of buyout deals that are levered seven times and greater has fallen to only 14% in 2015, down from 26% last year and down from 39% at the peak of the… Subscribe to