content

Investors Pour Another $853M into US Leveraged Loan Funds

U.S. loan funds recorded an inflow of $853.01 million for the week ended Feb. 22, according to Lipper weekly reporters only. This marks the fifteenth consecutive inflow since the week ended Nov. 16 for a whopping $15.17 billion total over that span.

The year-to-date inflow climbs to $7.345 billion, based on inflows of $5.310 billion into mutual funds and $2.035 billion into ETFs, according to Lipper.

The four-week trailing average dipped to positive $893.825 million, from $936.71 million last week.

ETF flows were $259.40 million of the total this week, with $593.61 million flowing into mutual funds.

The change due to market conditions this past week was positive $113.96 million, marking the second straight week of increases. Total assets were $86.94 billion at the end of the observation period. ETFs represent about 19% of the total, at $16.385 billion. — James Passeri

Try LCD for Free! News, analysis, data

Follow LCD News on Twitter.

This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

content

Leveraged loans: As demand for paper rolls on, private equity firms reap dividends

dividends leveraged loans

Private equity firms, never one to pass up an opportunity maximize their return on investment, have used the red-hot U.S. leveraged loan market to pay themselves a hefty $3.6 in dividends so far this year, according to LCD, an offering of S&P Global Market Intelligence.

This opportunistic loan issuance comes as investor cash continues to pour into the U.S. floating rate asset, amid a recent rate hike by the Fed, and the specter of two or three more in 2017, sources say. That crush of cash has led to a decidedly issuers’ market over the past two-plus quarters, enable soaring volume in the twin pillars of opportunistic loan issuance, repricings and dividend deals. – Staff reports

Try LCD for Free! News, analysis, data

Follow LCD News on Twitter.

This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

content

Leveraged Loans Gain 0.02% Yesterday; MTD: 0.01%; YTD: 0.57%

Daily loan index 2017-02-06

Loans gained 0.02% today after gaining 0.01% on Friday, according to the S&P/LSTA Leveraged Loan Index.

The S&P/LSTA US Leveraged Loan 100, which tracks the 100 largest loans in the broader Index, was unchanged today.

Loan returns are 0.01% in the month to date and 0.57% in the YTD.

Try LCD for Free! News, analysis, data

Follow LCD News on Twitter.

This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

content

Hertz Amends/Extends $3B of Leveraged Loan Maturities

Lenders to Hertz have approved an amendment to the company’s revolving credit and term loan facility that will, among other things, extend the maturities of $3.165 billion of securitized debt coming due in October 2017 to January 2019.

As part of the amendment, the consolidated net corporate leverage is replaced with a new consolodated first-lien leverage ratio, capped at 3x through March 31, before stepping up to 3.25x through Sept. 30, and back to 3x thereafter.

The previous leverage ratio was set at 4.75x through March 31, before stepping up to 5.25x through Sept. 30.

At Sept. 30, 2016, Hertz was in compliance with the leverage ratio covenant at 4.53x.

Hertz is restricted from paying dividends and certain restricted payments until a leverage-ratio test is satisfied as part of the terms, which also added a new covenant restricting the incurrence of certain corporate indebtedness and capped the amount of unrestricted cash that may be netted for purposes of calculating the consolidated first-lien net leverage ratio at $500 million.

The company’s $800 million of 5.5% notes due 2024 were one point higher at the close, at 86.75, trade data show. The bonds were issued in September 2016 to redeem $800 million of the 6.75% senior notes due 2019 in October 2016.

The issuer’s TLB (L+275, 0.75% LIBOR floor) remained at a 100.125 bid today, unchanged from the last session, sources said. The company in June of last year put in place the TLB and a $1.7 billion revolver to replace an existing asset-based revolver due 2017.

Lenders were offered a 25 bps consent fee. Deutsche Bank is administrative agent.

Hertz, which is rated B+/B1, has a total debt load of $14.9 billion. — Rachelle Kakouris

Try LCD for Free! News, analysis, data

Follow LCD News on Twitter.

This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

content

Leveraged Loan Repricing Volume Tops $100B in January, Smashing Records

Repricing volume January 2017

The leveraged loan repricing surge that kicked off 2017 has been unrelenting. Total repricing volume clocked in at a dizzying $100.2 billion in January, more than doubling the monthly issuance record, according to LCD. The previous record was $48.6 billion, from January 2013.

Notable loans backing the January repricing wave include a $2.5 billion B-1 term loan for Petco Animal Supplies and a $2.42 billion credit for Telesat Canada.—James Passeri

Try LCD for Free! News, analysis, data

Follow LCD News on Twitter.

This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.