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Archives| PDF| Research |Week of Aug 2, 2021
“There is so much money on the sidelines.”
- Rajat Bagaria, chief investment office, Wasserstein Debt Opportunities.
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“$2 Billion is the New $1 Billion”:
Unitranche Revisited (First of a Series)
In October 2015 we published a series of articles on the unitranche, what we called “one of the most innovative, and increasingly popular, financing tools in the middle market.” Those commentaries were consolidated into a white paper: “The Unitranche – What it is, and Why it Matters.”.

In that white paper we covered the history of the unitranche, including its origins in 2007 with a $3.6 billion fund managed by Allied Capital (later acquired by Ares) and Antares Capital.

We also detailed the unitranche structure which, back then, was often bifurcated between first-out and last-out slices. Each of these components was provided by different parties and governed by an Agreement Among Lenders (AAL). In the event, that structure became too clunky for private equity sponsors to manage, and credit providers morphed to a truly single first-out tranche...
NEW! 2H 2021 Midyear Outlook
  • Economic and Market Overview
  • Broadly Syndicated Market-Observations
  • A View on Private Credit
Readers' Say
This Week’s Question
For Lenders: What vehicles do you utilize most for your lending activities?
(*All responses are confidential.)
Separate Managed Accounts
BDCs
CLOs
Commingled Funds
SBICs
Last Week's Results
Given Delta variant, our back-to-the-office routine will now include…
Chart of the Week
Mega Billions
Volume for unitranche financings slumped at Covid’s onset, but quickly recovered.
Source: Refinitiv LPC’s 2Q21 Sponsored Middle Market Private Deal Analysis
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
Markets prove their resilience
Performance is on the up and deals are being done as firms show determination to fight their way through the pandemic...
Leveraged Loan Insight & Analysis
2021 Leveraged loan issuance
at US$722bn, up 63% YoY
As the delta variant threatens to destabilize US economic activity via a possible 4th wave the leveraged loan pipeline has seen an uptick as issuers move to bring deals to market before Labor Day...
The Pulse of Private Equity
Private debt fundraising keeps pace
Globally, private debt fundraising had a strong start to the year. According to PitchBook’s just-released Global Private Debt Report, 81 new funds have closed so far this year, worth a combined $72.5 billion...
Contact: Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source: Lipper
Covenant Trends 
Average EBITDA Adjustment Cap
for Synergies & Cost Savings
Private Debt Intelligence
Crowded markets continue in Q2
Both the number of private debt funds in market and the amount of capital targeted have continued to rise through Q2 2021...
Debtwire Middle-Market
Contact: Hema Oza/Debtwire 
Reorg Credit Intelligence
GBG USA Debtors to Run Sale Process With Stalking Horse for Aquatalia Assets,
Also Marketing Other Portfolio Brands
Copy: New York-based GBG USA Inc. – which, along with its debtor-affiliates, operates the North American business segment of Global Brands Group Holding Ltd., a branded apparel, footwear and brand management company – filed for chapter 11 protection today in the Bankruptcy Court for the Southern District of New York. Global Brands Group Holding Ltd. was incorporated in Bermuda and is publicly traded on the Hong Kong stock exchange. The debtors say they enter chapter 11 “running on fumes” amid the “catastrophic effects of the global COVID-19 pandemic, industry-specific headwinds and other liquidity constraints.” Click through for our First day team’s full case summary of the GBG USA chapter 11 filing.
Contact: Matt Danese/Reorg 
Middle Market Deal Terms at a Glance
Select Deals in the Market
This publication is a service to our clients and friends. It is designed only to give general information on the market developments actually covered. It is not intended to be a comprehensive summary of recent developments or to suggest parameters for any prospective financing opportunity.