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Archives| PDF| Research |Week of Oct 4, 2021
Private Capital Call
September 2021 – James Rooney, CEO and Nicolae Cristea, MD, Investment Management, Corient Capital Partners
“Markets are keenly aware of the effect of interest-rate increase on cash flow, earnings and all kinds of things.” - Jamie Cox, managing partner, Harris Financial.
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Supply Chain Blues (Last of a Series)
Last fall, the Harvard Business Review examined Covid’s impact on supply chains [link]. The pandemic, they wrote, “exposed vulnerabilities in the production strategies and supply chains of firms just about everywhere,” 

The study also presciently identified “the growing electronics content in modern vehicles” as a potential bottleneck. Today we are witnessing how the shortage of semiconductor chips is hampering auto production. 

Moving production in-house and increasing automation could help with uncertain labor and even social distancing. But consumers are demanding more choices, spawning a blizzard of SKUs. We love our Cheerios, but do we really need 23 varieties? (Including Pumpkin Spice, Limited Edition)...
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Chart of the Week
Delivering the Goods
Increased bottlenecks from Covid-related issues have extended expected lead times.
Source: Natixis, Dallas, Kansas City and Richmond Federal Reserve Banks
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
The challenge of meeting ESG ambitions
Sustainability is increasingly being factored into investment decisions, but there is little uniformity in approach...
Leveraged Loan Insight & Analysis
1-3Q21 leveraged issuance
sets new record at US$1.3Tr
U.S. bank arrangers completed over US$250bn of leveraged loan issuance during the quarter, the strongest 3Q results since 2017 as liquidity and a resurgence of sponsor activity buoyed the market...
The Pulse of Private Equity
PE’s growth compared to the public market
As an asset class, private equity’s growth has exploded over the past two decades. According to PitchBook’s latest Quantitative Perspectives Report, there are now twice as many PE-backed companies as there are public companies in the United States...
Contact: Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source: Lipper
Covenant Trends 
Average New-Issue Clearing Spreads (Single B) and Covenant Terms for PE-Backed First-Lien Institutional Loans
Private Debt Intelligence
Dry Powder for Direct Lending Senior Debt
at Record High
Almost 60% of dry powder in direct lending is allocated to senior debt, with $103.9bn available for investment worldwide as of October 2021...
Debtwire Middle-Market
Quarterly buyout volume
reaches new heights in 3Q21
Source: Dealogic, Debtwire Par
Institutional loans supporting buyout activity jumped to USD 21.1bn in September, bringing the quarterly figure to USD 52.4bn and surpassing the previous quarterly high of USD 48.9bn set in 2Q21...
Reorg Credit Intelligence
Structure of Revlon’s BrandCo Loan May Advantage BrandCo 2L Recoveries on RemainCo Collateral at the Expense of 2016 Term Lenders
Numerous refinancing transactions in recent years, including Revlon’s success in addressing its 2021 unsecured note maturity last year with an out-of-court solution, leaves the company with an incredibly complex capital structure consisting of foreign term loans, a three-tiered ABL facility, a three-tiered “BrandCo” facility, a partially paid-down regular-way term loan and one unsecured note issuance. Click through for our Americas Core Credit experts analysis of the Revlon refinancing situation.
Contact: Matt Danese/Reorg 
Middle Market Deal Terms at a Glance
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