European Chart of the Week: 22nd January 2020
The European leveraged loan pipeline is off to a very strong start in 2020, totalling an estimated EUR 36bn across 36 deals, with the institutional loan segment accounting for nearly EUR 32bn of the total. The year has already bagged Refinitiv–the EUR 2.3bn repricing closed on the 10th. The current pipeline has surpassed the most recent highs set in May 2018 and is nearly 70% above the year-ago level.
Loans in general syndication amount to EUR 16bn, boosted by cross-border transactions, with M&A-related financings representing 45% of the total. Notable deals in this category are LGC’s GBP 1.04bn cross-border transaction and Sophos’ USD 1.43bn-equivalent cross-border take-private.
Refinancings also account for a sizeable chunk (39%) of loans in syndication. Here again cross-border deals are prominent, including notable credits like Nouryon (AkzoNobel SpecialityChemicals)’s EUR 1.79bn repricing and Evonik Methacrylates’EUR 977m remarketing of the remaining portion left unsold from its June 2019 buyout financing.