DL Deals: News & Analysis – 4/13/2020

Price points emerge in 10% to 11% range
for jumbo direct lending loans


Two jumbo direct lending deals surfaced this week— Alnylam Pharmaceuticals and Airbnb —as the first comps to guide new issue underwriting since the Covid-19 pandemic shut credit markets a month ago.

Alnylam obtained a $750 million 1L term loan at L+700, while Airbnb booked a $1 billion 1L at L+750 at a 97.5 issue price. With discounts and LIBOR floors, the all-in yields for both are probably between 10% to 11%.