In July the European leveraged loan market reached levels of activity not seen since the credit crunch, as 39 transactions totalling €14.6 billion were launched. Out of this total, €10.8 billion or 74%, came from facilities syndicated to institutional investors, also a seven-year high.
Overall, leveraged loan investors have had a very busy summer, with €27.9 billion of loans launched in June and July, the biggest two-month tally since the same period in 2007. This brings the year-to-date volume to €59.5 billion, which is 19% ahead of last year’s comparable.
The majority of July’s loans funded M&A activity, totalling €9.7 billion or 66% of overall new issuance, up from 56% in the first half of 2014. Large transactions – such as the €1.8 billion first- and second-lien facilities for Quiron/IDCS, and €1.1 billion loan for Generale de Sante – contributed to this total, along with numerous smaller deals. Refinancings accounted for just 10% of volume in July, a significant decrease from 31% in the first half of the year.
This article is part of a longer analysis by LCD News, available to subscribers. It details loan volume by purpose, dividends taken out via the loan and bond markets, loan spreads and yield, and leverage levels for new credits. For more news, analysis and data on the leveraged loan market check out LCD's free site, LeveragedLoan.com.
