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Amid Deal Frenzy, M&A Leveraged Loan Issuance Shoots to Record High

M&A was the catalyst behind a jump in institutional leveraged loan issuance in the second quarter, which totaled $144 billion as of June 26, eclipsing the $129 billion in 1Q18, according to LCD. That would make the past three months the busiest for institutional issuance since the record $171 million in 1Q17, and the third-highest quarterly figure ever.

Throw in pro rata activity—revolving credits and amortizing term loans—and total volume this quarter is $198 billion, the second-highest amount on record, behind the $209 billion in 1Q17.

mna loan issuance

About that M&A: Institutional leveraged loan issuance for this purpose hit a record $83.9 billion in the second quarter, or 58% of all U.S. institutional issuance. The last time M&A came close to the 2Q total was the second quarter of 2007, at $82.9 billion. – Jon Hemingway

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LCD comps is 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.

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