Banks appear to be getting a bit more comfortable with leverage on middle market sponsored deals post their SNC review this year. Every quarter, Thomson Reuters LPC asks banks what is their maximum leverage cap for middle market sponsored-backed deals…. Subscribe to Read MoreAlready a member? Log in here...
Over $429 billion of syndicated loan volume worked its way through the market in 3Q14, to push 1-3Q14 totals north of $1.5 trillion. Although year to date issuance was down a relatively modest 5 percent year over year, 3Q14 lending alone was down 28 percent compared to 2Q14 and off 17 percent… Subscribe to Read
Besides two weeks with modestly positive inflows, last week marked the 21st week of loan mutual fund outflows which began after the Fed stated interest rate increases would be pushed out…. Subscribe to Read MoreAlready a member? Log in here...
The percentage of LBO deals with leverage levels greater than six times has returned to 2007 levels. So far in 2014, LPC tracked 46 LBO deals (where deal details were available) or 57% of the total with total leverage greater than the regulators’ benchmark 6… Subscribe to Read MoreAlready a member? Log in here...
The average yield assuming a three year term to repayment, on first-lien institutional tranches is at 5.56 percent so far in 3Q14, up from 5.17 percent in 2Q14. Moreover, 30 percent of first-lien term loans have priced at a yield of 6 percent or above,… Subscribe to Read MoreAlready a member? Log in here...
On the back of increasingly unsettling global headlines, the capital markets took a beating earlier this month. As the equity markets tumbled, the US high yield bond market likewise saw skittishness culminating in an outflow of over $7 billion during the week of August 6 alone,… Subscribe to Read MoreAlready a member? Log in here...
Global volatility has spread down to the leveraged loan market and investors are pushing back. Twenty one first-lien institutional term loans have flexed up in the first half of August, just one shy of the total for the months of April and May. On the flipside, only four first-lien term loans have flexed down, dramatically lower than…
The percentage of LBO deals with leverage levels greater than six times is returning to 2007 levels. So far in 2014, LPC tracked 40 LBO (where deal details were available) deals or 55% of the total with total leverage greater than the regulators’ benchmark 6 times debt to EBITDA. … Subscribe to Read MoreAlready a member? Log
After a record-breaking 2Q14, there was a sharp pull-back in the HY bond market in July. In fact, a number of deals remain on the calendar because they didn’t make it into the market the last week of July due to adverse market conditions…. Subscribe to Read MoreAlready a member? Log in here...
The middle market is quite a diverse market place and yields vary based on lender type and EBITDA size. In 2Q14, moving down market to lend TLBs to smaller private middle market issuers resulted in a nice 70bps premium for first lien deals over rated, public middle market institutional deals. However, while there is a premium…