Where’s the Line Between Senior Stretch and Unitranche? [Lead Left Vodcast]
2.8 هزار بار بازدید -
5 سال پیش
-
This week we fearlessly tackle
This week we fearlessly tackle one of the most frequently asked questions in private credit: Namely, where do you draw the line between a #SeniorStretch loan and a #Unitranche?
It’s a topic that’s gained increasing traction as issuer leverage has risen steadily, going back well before the financial crisis. Back in the early 2000’s when middle market first-lien was 3-ish times debt-to-ebitda, along with mezz or second-lien, you could “stretch” a senior-only financing to 3.5x, maybe 4.0x.
Today Refinitiv LPC data shows all-senior midcap leverage for private sponsored club deals has risen to 4.2x. Similarly, first-lien leverage (with second lien) is up to 4.5x.
Compare that to unitranche leverage. Back in 2013 single-tranche debt was 4.9x; today it stands at 5.3x. All these levels are the highest since the Great Recession...
*"Hand with money" icon made by monkik (https://www.flaticon.com/authors/monkik) from Flaticon (www.flaticon.com)
RESOURCES & LINKS:
_________________________________
▶︎ Read Nov 11 2019 newsletter: https://conta.cc/2rD3fVx
▶︎ Chart of the Week: https://www.theleadleft.com/chart-of-... (by Refinitiv LPC)
FOLLOW US:
_________________________________
▶︎ Subscribe to our Newsletter: https://www.theleadleft.com/
▶︎ Follow our Twitter: @theleadleft
▶︎ Follow our LinkedIn: https://shorturl.at/sCSX1
It’s a topic that’s gained increasing traction as issuer leverage has risen steadily, going back well before the financial crisis. Back in the early 2000’s when middle market first-lien was 3-ish times debt-to-ebitda, along with mezz or second-lien, you could “stretch” a senior-only financing to 3.5x, maybe 4.0x.
Today Refinitiv LPC data shows all-senior midcap leverage for private sponsored club deals has risen to 4.2x. Similarly, first-lien leverage (with second lien) is up to 4.5x.
Compare that to unitranche leverage. Back in 2013 single-tranche debt was 4.9x; today it stands at 5.3x. All these levels are the highest since the Great Recession...
*"Hand with money" icon made by monkik (https://www.flaticon.com/authors/monkik) from Flaticon (www.flaticon.com)
RESOURCES & LINKS:
_________________________________
▶︎ Read Nov 11 2019 newsletter: https://conta.cc/2rD3fVx
▶︎ Chart of the Week: https://www.theleadleft.com/chart-of-... (by Refinitiv LPC)
FOLLOW US:
_________________________________
▶︎ Subscribe to our Newsletter: https://www.theleadleft.com/
▶︎ Follow our Twitter: @theleadleft
▶︎ Follow our LinkedIn: https://shorturl.at/sCSX1
5 سال پیش
در تاریخ 1398/08/27 منتشر شده
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