Managers could face 16% increase in cash-flow challenged issuers next year Portfolio managers are potentially facing a 16% rise in the number of borrowers that cannot generate enough cash flow to meet interest expenses by the end of 2023, based on an analysis by KBRA DLD’s new parent, Kroll Bond Rating Agency (KBRA). The analysis…
KBRA DLD records $39B for 3Q22 volume, tops BSL & HY combined Direct lending volume topped output for liquid credit in the third quarter for the first time since KBRA DLD started tracking this data in January 2021. New issuance for US sponsored direct lending finished at $39 billion, nudging ahead of the $38 billion…
Dry July: Jumbo volume deflates Private jumbo financings (>=$1B) have the advantage under current market conditions, but deals going forward are expected to trend smaller for the first time since DLD started tracking these credits in September 2019. There are several issues affecting capacity: 1) managers invested much of last year’s record capital in the…
Private lending volume posts strong quarter, but a slowdown lies ahead Direct Lending Deals’ Private Data set picked up $56.9 billion in sponsored U.S. loan volume during the second quarter, to rebound from a weak first quarter of $20 billion, and beat the $40.4 billion recorded during the private lending binge that drove the final…
Jumbo volume in 1H 2022 reaches $30.8 billion to bring total tally to $86.5B Volume in the first half of 2022 for private loans sized at $1 billion or more has reached $30.8 billion, a level that dwarfs the $9.5 billion recorded in the same period last year, according to Direct Lending Deals. On a…
YTD: Private Leverage by Industry (Past performance is no guarantee of future results.) Contact: Kelly Thompsonkelly.thompson@dldeals.com
Private jumbo volume reaches second biggest monthly tally Jumbo private loan volume in May stands at $8.6 billion, the second largest monthly tally on record as the market approaches Memorial Day weekend and the start of the summer session. The $8.6 billion is across three borrowers —Nielsen, NPD/Information Resources and ManTech. NPD is the largest…
Direct lenders usher in new records for jumbos, recurring rev deals Competition between liquid and illiquid debt financing is heating up amid broader economic uncertainty generated by rising inflation, interest rate hikes and the war in Ukraine. Software company Kaseya surfaced this month with a $3.7 billion jumbo unitranche loan to kick Galway Insurance’s $3.4…
Volatility primes more records for jumbo unitranche loans Jittery markets are priming new records for jumbo unitranche financing. At least a few mandates are in the works that exceed Galway Insurance’s $3.4 billion record last year. Expect jumbos to emerge in support of buyouts, particularly in the software, insurance and healthcare sectors. About half of…
Unitranche spreads, yields hit 2021 low in December Competition moved unitranche spreads 25 bps lower in December to an average of L+540, a monthly low in 2021, despite the stabilizing effect heavy volume in the fourth quarter had on pricing for smaller borrowers and non-unitranche LBO financing. The decline dropped all-in yields to 6.7%, also…