Search and Recovery (Last of a series)

As we conclude our special series on leveraged loan recoveries, let’s take a look at one structure that is testing the way credit managers think about loan value. Unitranche financings are so much a part of the middle market buyout landscape today, that it’s hard to imagine a time without them. Yet on the evolutionary

A Year in Review (First of a Series)

The notion that the middle market has reached a level of maturity was supported by a plethora of evidence this past year. For one thing, arrangers showed astonishing underwriting capacity by taking on a number of large-cap sponsored buyouts. Probably the most precedent-setting was Qlik Technologies. At just over $1 billion, this Ares-led unitranche represented a

Special Report: The Unitranche – What it is, and Why it Matters

Beginning in October 2015 The Lead Left published a series of articles on the unitranche – one of the most innovative, and increasingly popular, financing tools in the middle market. This report consolidates those articles: What is a Unitranche? Types of Unitranche Structures The Agreement Among Lenders (AAL) The Universe of Unitranche Players Key Unitranche […]

The Unitranche – What it is, and Why it Matters (First of a Series)

As with all great capital market innovations – price flex, CLOs, and second-lien term loans – the unitranche seems obvious in hindsight. Having one lender provide a senior secured tranche that mimics a combined senior and subordinated debt structure solves a number of borrower issues. Yet its development was hardly a foregone conclusion. A decade ago the