Sponsored large corporate direct lending volume dropped 28% in 2Q23 US sponsored large corporate direct lending loan volume totaled US$12.5bn in 2Q23, 28% lower than 1Q23’s level. The US$12.5bn total represented a 17% share of overall US large corporate sponsored loan volume, its lowest share since 3Q21…. Subscribe to Read MoreAlready a member? Log in
Interest coverage ratios move lower Interest coverage ratios have come come under pressure as base rates have moved sharply higher in the last 15 months. The average interest coverage ratio on new middle market sponsored loans slipped to 2.20x in 2Q23, the lowest level since LPC started tracking this data in 2018…. Subscribe to Read
US unitranche volume tallies under US$10bn in 2Q23 as jumbo deals become scarcer US unitranche volume sank further in 2Q23, totaling US$9.4bn, the first time it tallied less than US$10bn since 2Q20. Large corporate unitranche volume totaled only US$5.4bn, the lowest since 4Q20…. Subscribe to Read MoreAlready a member? Log in here...
US sponsored middle market direct lending volume increased in 2Q23 Activity picked up in the US middle market direct lending space in 2Q23 but remained at lower levels. At US$16.3bn, sponsored middle market direct lending volume was up 32% from 1Q23 but was down 46% year-over-year. In contrast, the syndicated sponsored market slowed down relative…
2Q23 US middle market syndicated lending dropped 53% year-over-year US middle market syndicated loan volume reached US$27.8bn in 2Q23, down 53% from 2Q22 and 7% quarter-over-quarter. Sponsored syndicated loan volume was on par with 1Q23, but was down 60% year-over-year, while non-sponsored issuance of US$20.9bn in 2Q23 was 50% lower year-over-year and 10% lower than…
1H23 U.S. loan volume down 18% y-o-y; 2Q23 totals down 32% y-o-y Bruising market volatility marked by higher interest rates, increased regulatory scrutiny of large corporate M&A deals and lender expectations of greater regulatory oversight among reigonal banks contributed to a significant slow down in the 1H23 US BSL market. Roughly US$571bn of issuance was…
How would you characterize the quality of 2Q23 deal supply? One of the main challenges that middle market lenders have faced this year is finding high quality deals. According to Refinitiv LPC’s 3Q23 Middle Market Outlook Survey’s preliminary results, 20% of lenders characterize the 2Q23 supply of deals as having poor quality, while 44% said…
BDC portfolio marks expected to move moderately lower BDC portfolio companies are being closely monitored to gauge stress as a result of the higher interest rate environment, the degree of pressure on margins and declining interest coverage ratios for over-levered borrowers. The most recent, indicative data available does not show any significant deterioration yet although…
Total leverage drops on 2023 US LBO deals So far this year, US LBO activity has been very slow. Year-to-date syndicated LBO loan volume of around US$18bn is running 70% lower year-over-year. Meanwhile, total debt to Ebitda levels on large corporate LBO deals has dropped to an average of 6.2x this year, nearly a whole…
US syndicated sponsored middle market loan volume totals US$4.3bn in 2Q23 Sponsored-related activity in the loan market has been slower in recent quarters as higher interest rates and tightening lending conditions has made it more difficult for private equity shops to execute on M&A deals. Private credit continues to take a much larger share of…