Toys ‘R’ Us bankruptcy pushes DIP loan issuance to the highest level since 2009 Toys ‘R’ Us launched a US$3.125bn debtor-in-possession (DIP) facility this week after filing for Chapter 11 protection on Monday. If the deal goes through at the launch amounts, it would bring year to date DIP loan issuance to US$7.6bn across 13
Middle market covenant lite deals exhibit higher leverage than covenanted deals Private equity shops who are purchasing large middle market credits with EBITDA $40M and above have many choices on how to finance their deals. Those sponsors that choose the institutional loan market seem to get the most flexibility. Middle market covenant lite volume has
Leveraged market set to keep things rolling post-Labor Day The leveraged loan market has not looked like it will slow down anytime soon. Year-to-date completed issuance stands at US$972bn through the end of August. That is higher than any post-crisis year through 3Q while another roughly $35bn sits in the pipeline for September. While the
Mixed earnings result in investors running from select BDCs BDC 2Q17 earnings season is in full swing and results have been extremely mixed keeping the landscape quite bifurcated. After returning to book value in 2Q17, the average share price to net asset value per share for the public BDCs has been back on the decline
MM Fundraising hits US$35B YTD, on track to match 2016 levels Fundraising for middle market lending continues strong in 2017. Year to date LPC has tracked almost US$35 billion in inflows on the back of US$60B just last year. Direct lending funds continue to make up the biggest piece of the pie raking in 64%
Yields of first/second-lien structures continue to tighten The average yield has widened to 5.46% so far in 3Q17 from 4.96% in 2Q17. One of the reasons behind widening yields is that while refinancings continue to lead activity, the share of M&A credits has increased to 40% of the institutional tranches priced so far this quarter....
Leverage peaks in the middle market across capital structures in 1H17 With market conditions extremely heated, leverage levels have peaked across most capital structures in the middle market in 1H17. The “all senior” capital structure hit a new peak at 3.83 times in 1H17, up from 3.79 times last year and from 3.41 times back
Primary leveraged yields widen in July Average yields have increased across the board so far in July, more so for lower rated issuers. The average yield, assuming a three-year term to repayment on first-lien institutional term loans is 5.79% for B-rated issuers so far in 3Q17....
Middle market loan volume disappoints in 2Q17 Despite all the capital flowing into the middle market, loan supply continued to disappoint in 2Q17. Total middle market loan issuance reached US$39.8bn in 2Q17, up a slight 2% and 7% from 1Q17 and 2Q16 levels....
1H17 US Syndicated loan volume hits record high at over US$1.2Tr US syndicated loan issuance hit a new milestone in 1H17 to mark the highest half year total on record at over US$1.2T (an additional US$21.6bn of clubbed loans also worked their way through the market to bring US corporate issuance to nearly US$1.4Tr in