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Archives| PDF| Research |Week of June 28, 2021
“The market was sticking its fingers in its ears to all the signs that the Fed was shifting.”
- James Athey, investment director, Aberdeen Standard Investments.
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The State of Private Credit in Europe
(Third of a Series)
For a sense of overall credit conditions, we tuned last week into the European Leveraged Finance Mid-Year Update hosted by Fitch. The discussion – covering the economy, ratings, covenants, and structures – was virtually indistinguishable from recent US market conferences. Apart from these panelists’ distinguished accents.

For example, activity for leveraged loans in Europe has generally returned to that of pre-Covid levels. The pendulum for terms, that had swung investor-friendly a year ago, is much more issuer-friendly this year. Also, the asset recovery from last year’s downturn is so complete that there’s hardly an element of caution remaining to tamp down frothy conditions.

Our friends at Tikehau reported in a private note that 1Q European leveraged finance activity, combining both loans and bonds, was just under €80 billion; more than double 4Q’s performance...
  • Correlation Nation: Private Credit…and Everything Else
  • Distressed for Success
  • Private Credit – Sector by Sector
  • The M&A Big Bang
Readers' Say
This Week’s Question
Compared to the first half of 2021, loan document flexibility in the second half of 2021 will show….
(*All responses are confidential.)
More flexibility
Similar flexibility
Less flexibility
Not sure
Last Week's Results
Which technology will impact people’s life most in the near future?
Chart of the Week
Two of a Kind
The relative yields-to-maturity of institutional term loans in the US vs. Europe have narrowed during Covid.
Source: S&P/LCD European Leveraged Lending Review, May 2021
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
Private debt warms up in the Middle East
Sovereign wealth interest is becoming apparent as one of the world’s nascent debt markets shows signs of growth...
Leveraged Loan Insight & Analysis
1H21 U.S. loan volume up 58% y-o-y;
Second highest total on record
U.S. arrangers pushed almost US$1.466trn through the retail syndication in 1H21, a 58% increase over the same period last year and the strongest half year totals since 1H18 (US$1.492trn)...
The Pulse of Private Equity
A snapshot of global buyout multiples
PitchBook’s latest analyst note, released tomorrow, takes a close look at buyout multiples across the IT, healthcare and consumer spaces. The pandemic had material and divergent impacts on IT and consumer...
Contact: Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source: Lipper
Covenant Trends 
% of Loans that Cleared with an MFN Sunset
Private Debt Intelligence
North American PD deal value
rebounds to pre-pandemic levels
North America has seen 352 deals in private debt with an aggregate deal value of $71.2bn so far in 2021...
Debtwire Middle-Market
Green/ESG high yield bonds issued
by US corporates trade up in secondary
Source: Dealogic, Markit
Green and environmental, social, and corporate governance-linked high yield bonds issued in US dollars have taken off in the first half of 2021 as more issuers opt to adhere to the Green Bond Principals...
Reorg Credit Intelligence
CP Holdings Seeks to Run Sale Process
With Stalking Horse/DIP Lender Tor
Asia Credit Master Fund, Prepetition Lender Under Debtor-Guaranteed Loan
Dallas-based CP Holdings LLC and Pacrim U.S. LLC, which wholly own 47 nondebtor subsidiaries that operate 10 rural assisted living and memory care facilities in Alabama and Texas, filed for chapter 11 protection on Sunday, June 20, in the Bankruptcy Court for the District of Delaware. The debtors filed for chapter 11 under forbearance with prepetition first lien lender Tor Asia Credit Master Fund LP with respect to $66.4 million in first lien obligations for which the debtors are guarantors, after affiliate CP Global and other obligated parties made repeated covenant and payment defaults on the first lien obligations. The company seeks to sell substantially all of their assets to Tor for a credit bid of (i) $14.9 million of first lien obligations and (ii) all DIP obligations.
(For access to our First Day by Reorg team’s full case summary of the CP Holdings chapter 11 filing click here.)
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.