Though issuance is down significantly from last year’s levels, the average size of broadly syndicated institutional loans has climbed further in 2019, continuing a trend seen in the last few years. A decline in the share of smaller size deals is markedly evident, leading to less diversification in terms of new deal flow for lenders.
The average size of LBO institutional loans this year is EUR 608m, up from EUR 580m in 2018 and EUR 428m in 2017. It’s the same story on M&A deals (excluding LBOs), with the small number of TLBs averaging EUR 770m this year, up from EUR 653m in 2018.
Leading the way on the LBO side are large credits like JCI Power Solutions (EUR 1.995bn TLB tranche), Ahlsell’s(EUR 1.8bn institutional tranches) and IFCO (EUR 1.09bn TLB). On the other hand, there is also the EUR 1.7bn TLB financing the acquisition of AmerSports.
-Colm (CJ) Doherty colm.doherty@acuris.com For access to our comprehensive news, analysis and data on the global loan and bond markets, please subscribe to Debtwire Par.
Colm Doherty is Debtwire’s Global Head of Primary Market Analysis. He is responsible for leading the production of primary market analysis and reports focused on the leveraged loan and high yield bond markets. Prior to joining Debtwire, Colm was Director of Analysis at Thomson Reuters LPC covering leveraged loans, CLOs and high yield bonds.
Colm has a B.A. in Economics & Legal Science from National University of Ireland Galway and an MSc. in Accounting & Finance from Ulster University.
Colm Doherty is Debtwire’s Global Head of Primary Market Analysis. He is responsible for leading the production of primary market analysis and reports focused on the leveraged loan and high yield bond markets. Prior to joining Debtwire, Colm was Director of Analysis at Thomson Reuters LPC covering leveraged loans, CLOs and high yield bonds.
Colm has a B.A. in Economics & Legal Science from National University of Ireland Galway and an MSc. in Accounting & Finance from Ulster University.
Get these unique insights and more with Debtwire
Debtwire gives fixed income professionals an edge in leveraged finance, distressed debt and direct lending.
An error occurred trying to play the stream. Please reload the page and try again.
Close
