Tom's Two Cents: Debt Markets
Introducing our debt capital markets blog: Tom’s Two Cents. I will share thoughts and insights here on a regular basis in between issues of our more in-depth newsletter, The Wire.
Loan volume is declining
Loan volume thus far in 2015 has been down year-over-year due, in part, to slower M&A activity, reduced financing activity, and longer processes. Check out the chart below:
But debt capital remains in abundant supply
Debt capital continues to be readily available. We are seeing new lenders and funds popping up seemingly on a weekly basis. With somewhat muted deal volume and increased disintermediation and competition from unitranche providers, we have also seen more aggressiveness from mezzanine lenders. For repeat issuers and stronger credits, mezzanine lenders will price deals as low as the 10% to 11% range with 0% to 1% payment-in-kind and no warrants.
Check out our most recent transactions here.
- PublicationsThe Wire — Livingstone’s Debt Advisory PerspectiveYou down with OCC? Yeah you know me. If you plan on tapping the commercial bank market in 2015, here’s something to bear in mind that the Office of the Controller of the Currency’s (“OCC”) leveraged lending guidelines will undoubtedly effect how receptive commercial banks will be to your leveraged...