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 step lower than 2022’s 7.1x average, and the lowest mark since 2016. In addition, the share of US LBO deals that have total debt to Ebitda levels 7x or greater comprises just 11% of deals this year. By comparison, last year saw 68% of US LBO deals levered 7x or greater. At the same time, the share of LBO deals levered 6x or greater has fallen from 80% last year, to 56% so far this year, the lowest share since 2012.
(Past performance is no guarantee of future results.)
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