Syndicated middle market sponsored volume tanked in 3Q18 The summer of 2018 was not noteworthy for those middle market lenders that focus on sponsored deals. Syndicated issuance took a nose dive to just US$13.7bn in 3Q18, down 43% and 30% from 2Q18 and 3Q17 levels respectively. “We are only able to get crumbs in terms…
Leveraged loan volume tumbles in 3Q18; Arrangers back end jumbo deals to September Despite the strong market technicals which continued to define the US loan market, 3Q18 leveraged loan volume tumbled 57% quarter over quarter with US$176.6bn of assets completed in retail syndication. Some of this was not altogether surprising given the traditional slowdown during…
Primary yields widen in 3Q18 to levels not seen in over two years Average primary yields on first-lien institutional term loans in 3Q18 are at their highest levels since 1Q16. At 6.44%, the average yield assuming a three-year term to repayment on first-lien institutional term loans is 67bp higher than 2Q18’s average. Unlike prior quarters,…
US institutional market flex activity has favored issuers so far this month September deals in the institutional loan market have so far been well received by investors. The Flex Factor has tracked 6 flexed deals so far this month with 5 of them being in favor of issuers. This has allowed for an issuer friendly…
Primary yields have widened across the board in 3Q18 The average first-lien institutional term loan yield, assuming a three-year term to repayment is 6.41% so far this quarter, up from 5.77% in 2Q18. One of the main drivers behind increasing yields is the shift in the deal mix. So far in 3Q18, 58% of the…
US LBO loan volume tops US$100bn, up 32% year over year Following the proverbial summer slowdown in the last few weeks leading to Labor Day, the leveraged loan market, and more specifically, the sponsored loan market, hit the ground running on Tuesday, boosting a much anticipated deals pipeline. Price guidance for the permanent financing backing…
Loans backing cross border M&A deals at record high Despite a flurry of cancelled or withdrawn M&A transactions recently, the global M&A market remains very strong nearly eight months into 2018. Cross-border deals in particular have been especially robust with over US$1trln of announced transactions, an increase of 74% compared to the same time last…
A third BDC issues public equity this year, but issuance remains at 16-year low Source: Thomson Reuters LPC, Wells Fargo Securities LLC TriplePoint Venture Growth BDC, a venture capital BDC, announced it is tapping the public markets to raise follow-on equity making it only the third public BDC to raise new equity this year. The…
Middle market dominates for LBO activity with direct lenders stealing share from syndicated market New Co/New Traditions! Join us for a half day on September 12th for our 24th Annual Loans Conference. The middle market continues to remain a hot spot for LBO activity – however the numbers don’t always show it. Pre credit crisis (2004-2008), roughly…
Unitranche volume exploded in 2Q18 Unitranche volume hit a new high in 2Q18 since LPC began tracking this facility. 2Q18 issuance exploded to $8.67bn, up a whopping 178% from 1Q18’s low levels. Middle market lenders financed bigger deals in 2Q18 which also was a contributor to the pick up in unitranche volume. The average deal…