This week we continue our conversation with Richard Petrocelli, CFO of FSC and FSFR, and Frederick Buffone, Head of Capital Markets, FSAM. Fifth Street Asset Management (FSAM) is a credit-focused asset manager with $6 billion of AUM across two public BDCs, Fifth Street Finance Corp. (FSC) and Fifth Street Senior Floating Rate Corp. (FSFR), as well as multiple private investment vehicles. Second of two parts – View part one
The Lead Left: What are you expecting for 2015 in terms of pricing and structure?
Fred Buffone: We see a leveling of spreads and leverage. The middle market is trying to be prudent. Volatility has stopped some of the worst offenders. Right now the calendar is very manageable.
TLL: Is it new deals or refinancings?
FB: We’re seeing more M&A transactions. The share of new money deals has grown from 50% to 75%. Of course there have been a lot of false starts. August was a very busy month for us, which then slowed into September and October. Recently though, it has picked up again.