Unitranche in price discovery mode,
likely moving back over 600bp

Chart

Amid falling Libor and more volatile pricing conditions in the syndicated market, unitranche pricing is moving higher after hitting rock bottom levels in 4Q19. So far in 1Q20, the average blended spread on a unitranche is 590bp, up from a low of 578bp in 4Q19. And it is likely that the average will move into the 600bp area near term. “Unitranche pricing is case by case and is running the gamut from as low as 575bp all the way up to 700bp.