Chart of the Week: Delivering the Goods
Increased bottlenecks from Covid-related issues have extended expected lead times.
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Covenant Trends – 10/4/2021
Average New-Issue Clearing Spreads (Single B) and Covenant Terms for PE-Backed First-Lien Institutional Loans (Past performance is no guarantee of future results.) Contact: Steven Miller
PDI Picks – 10/4/2021
The challenge of meeting ESG ambitions Sustainability is increasingly being factored into investment decisions, but there is little uniformity in approach. Everyone can agree that taking environmental, social and governance issues into account is now a greater priority for private debt fund managers than it has ever been in the past. But questions remain over…
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Loan Stats at a Glance – 10/4/2021
Contact: Marina Lukatskymarina.lukatsky@spglobal.com
Leveraged Loan Insight & Analysis – 9/27/2021
2021 Sponsored leveraged loan issuance is US$493.4bn, up 120% YoY Near the end of the 3Q21, sponsored leveraged loan issuance for the year is US$493.4bn, broken out between US$122.9bn of LBO volume and US$171.6bn of non-LBO volume. Issuance is up 120% over the same time period in 2020, and up 52% from FY2020 but still…
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Deal Flow and Bandwidth Issues
Before Covid the persistent view of private credit was too much capital chasing too few deals. Transaction inflation was resulting in tight spreads, high leverage and weak terms. When Covid hit this balance shifted dramatically in favor of the investor. Deal supply dried up, lenders retreated, and terms strengthed. But within weeks central bank liquidity […]
Debtwire Middle-Market – 9/27/2021
Source: Cliffwater Direct Lending Index and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the *Cliffwater Direct Lending Index (CDLI) current yield, which is based on the investment income of the underlying assets held by public and private BDCs. BDCs invest in middle market companies, and the Index…
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The Pulse of Private Equity – 9/27/2021
SPAC IPOs are down, SPAC acquisitions are up Download PitchBook’s Report here. SPAC IPO volume is down considerably in mid-2021. A decline was probably inevitable, considering how massive Q1 volume turned out to be. Between Q1 and Q2, a new PitchBook analyst note shows a 67% decline in SPAC IPO count and 81% fall in aggregate…
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Reorg Credit Intelligence – 9/27/2021
Structure of Revlon’s BrandCo Loan May Advantage BrandCo 2L Recoveries on RemainCo Collateral at the Expense of 2016 Term Lenders Numerous refinancing transactions in recent years, including Revlon’s success in addressing its 2021 unsecured note maturity last year with an out-of-court solution, leaves the company with an incredibly complex capital structure consisting of foreign term…
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