Debtwire Middle-Market – 1/25/2021

Institutional loan pricing tightens sharply in January


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Source: Debtwire Par

Strong demand for loans has pushed pricing sharply tighter in January, with the first-lien institutional benchmark hitting its lowest level since 1Q20. So far this month, margins have averaged Libor+320 bps, down from L+ 413bps in 4Q20. Original issue discounts (OIDs) have also posted a pronounced tightening, with the discount declining to 39bps on average from 120bps in 4Q20.