Debtwire US Mid-Market Financing Forum 2016
The University Club of New York
As interest rates are poised to climb all along the yield curve and corporate earnings come under pressure, debt markets have never presented such a challenging environment to investors and issuers alike. Even companies with strong free cash flow will not be immune to the effects of shrinking economic activity, which will present challenges to operating and financial leverage ratios. Debt investors’ confidence will be tested.
Registration and Breakfast
Middle Market Distressed Investing Outlook
This panel will provide a comprehensive outlook on the climate for middle market distressed investing trends and opportunities. How will the low default rate environment coupled with a variety of liquidity sources and few impending maturities impact the market? Will the low interest rate environment persist, allowing companies to secure leveraged financing at will? Will it force more funds to divert resources towards direct lending as opposed to distressed investing? A distinguished panel of investors and advisors will discuss and debate these questions and many more. Which sectors are likely to offer the most distressed investment opportunities in 2016? Will the energy sector stabilize in the back half of the year or is there still more distress to come? How are funds taking advantage of the situation, do we expect to see more direct lending or more control investing? Are there any fundraising trends that suggest the emergence of a major sector for distressed investment that is currently being overlooked?
- Which sectors are likely to offer the most distressed investment opportunities in 2016?
- Will the energy sector stabilize in the back half of the year or is there still more distress to come?
- How are funds taking advantage of the situation, do we expect to see more direct lending or more control investing?
- Are there any fundraising trends that suggest the emergence of a major sector for distressed investment that is currently being overlooked?
DCM Trends and a Forecast for 2016 and Beyond
How will the macroeconomic environment influence DCM mid-market issuance? What can be expected in the way of regulatory legislation and its potential impact on market activity? The answers to these questions, and many more, will be addressed by a panel of expert market practitioners as they assess the general outlook for DCM activity across a wide spectrum of variables, both niche and macro, with particular attention on the following:
- What are the latest alternative loan strategies for banks to lend to mid-market stressed credits?
- How has the increased role of business development companies (BDCs) as senior debt providers impacted the debt capital markets?
- Are there concerns about regulators bearing down on BDCs and other non-regulated lenders in the same manner they have with banks given the large amount of dry powder that’s committed to middle market lending now?
- What are the key attributes of partnerships between bank lenders and BDCs and co-investments between non-bank lenders?
- What are the expected default and recovery rates of mid-market companies?
- What does the decline in mid-market firms’ margins possibly mean for the credit outlook for stressed mid-market credits?
- How has the unitranche market evolved in the US? And are sponsors embracing this as a way to fund deals?
Middle Market LBO Outlook
The landscape for middle market leveraged buyouts seems to be ever changing. Our panelists will look ahead at the major LBO trends that can be expected for 2016 and beyond. What will the environment be for fund raising? Which sectors and countries can expect to offer the most middle market buyout investment opportunities?
- What’s the outlook in 2016 and beyond for middle market LBO activity? Which sectors and regions will be most appealing for LBO investment?
- How prevalent will alternative investment structures like co-investments be, and what will the effect be on the wider industry?
- Will terms of middle market LBO financings continue to be favorable to borrowers? E.g. less restrictive covenant terms, reclassification of debt, etc.
- Are there political/regulatory changes on the horizon that will impact LBO deal activity?
- What’s the prognosis for US middle market buyouts this year? Will the current environment lend itself to more cross-border transactions in order for PE funds to source deals?