Leveraged Loan Insight & Analysis – 4/20/2020

COVID-19 hits unitranche issuance in 1Q20


After growing for three straight quarters and hitting an all time record high in 4Q19, unitranche volume took a steep hit in 1Q20. Total U.S. unitranche issuance fell to US$11.5bn in 1Q20, down 35% from 4Q19’s record high of US$17.5bn. The “mega tranche” trend that exploded in 4Q19 at US$7.7bn continued early on in 1Q20 with deals like MRI Software and GS Pretium, but came to an abrupt stop in March resulting in large corporate unitranche issuance falling to $5.32bn.