DL Deals: News & Analysis – 3/6/2023

Jumbo outstandings climb to $118B with Cotiviti’s new record deal

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Cotiviti’s $5.5 billion credit raises outstanding jumbo loan volume to $118 billion, as tracked by KBRA DLD. That figure includes incremental debt for existing jumbo issuers, defined as those with private loans of $1 billion or greater. The number of known companies with outstanding jumbo credits totals 55, for an average deal size of $2.1 billion per borrower, according to KBRA DLD.

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Cotiviti is a watershed deal for the market: 1) it’s a new record for private financing, topping Zendesk’s $5 billion credit, 2) it marks the first jumbo credit to feature PIK pricing, and 3) strong demand for the credit signals a renewed interest in underwriting larger commitments.