Flex activity in the U.S. institutional loan market favored investors in November. Thomson Reuters LPC’s Flex Factor registered an average flex score of 1.5 last month, signifying a higher ratio of investor friendly changes made to deal terms. It was the first time it has been above one since February’s average score of 3.5. In all, 19 deals flexed higher in November against 13 reverse flexes. It was the least amount of reverse flexes in a month since March.
Issuers have largely been taking advantage of improved market conditions to come back and reprice deals. This has given investors the opportunity to be choosier and push back for better terms. November also saw an uptick in acquisition financing activity. Sporting goods retailer Bass Pro Shops was one such issuer which came to market to finance its US$5.5bn acquisition of Cabela’s Inc. Certain retail names have struggled and the Ba3/B+ rated issuer had a few investor friendly changes made to the loan. The term loan B commitment size was decreased in favor of a term loan A tranche. In addition the spread increased 100bp from launch and soft call protection was extended.
Contact: David Puchowski
David.Puchowski@thomsonreuters.com
Latest news
Top 50 BDCs Accounted for 75% of Nonaccrual Loan Cost in Q2’26
The 50 largest BDCs, on the basis of total debt investments as of the second quarter of 2026, accounted for 75% of the total aggregate reported value of nonaccrual debt at cost and fair value.
US private debt AUM ($B) by channel
In 2025 and the early part of 2026, the retail channel added AUM to the asset class at a much faster rate than institutional investors in both regions, with growth rates of 43.7% globally, 41.4% in the US, and 73. 1% in Europe through the beginning of 2026 compared with year-end 2024 figures.
