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Leveraged loans return 0.15% in August; YTD return is 2.73%

Through August, the S&P/LSTA Index is up 2.73%, versus 3.28% during the first eight months of 2013. Despite August’s market-beating gain, the Loan 100 lags in the year to date, at 2.46%, versus 2.99% during the same period last year.

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  • Annual returns
  • Average bid of the S&P/LSTA Index
  • Returns by type of debt
  • Weekly loan fund flows
  • Par amount outstanding of the S&P/LSTA Index
  • CLO issuance
  • Average new-issue first-lien spreads
  • Repricing volume by month
  • Institutional M&A forward calendar


– Steve Miller

Follow Steve on Twitter for an early look at LCD analysis, plus market commentary.

 

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Fifth Street Management closes $305M Senior Loan Fund II

logo-fifth-street-regFifth Street Management has closed its Fifth Street Senior Loan Fund II (SLF II), a $305 million multi-tranche financing facility that will invest in senior secured loans to middle-market companies, according to a statement from the firm.

SLF II’s financing was provided via a three-tranche credit facility with ratings from DBRS ranging from AAA(sf) through BBB(sf). Natixis served as sole lead arranger and placement agent.

Portfolio assets will be sourced through Fifth Street’s middle-market origination platform.

Fifth Street Senior Loan Fund I is a $210 million fund that closed in February 2014.

Fifth Street Management is an alternative asset manager that manages a number of private funds and is the SEC-registered investment adviser of publicly-traded business development companies Fifth Street Finance Corp. and Fifth Street Senior Floating Rate Corp., which trade on the NASDAQ under the tickers FSC and FSFR respectively. – Jon Hemingway

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Bankruptcy: Exide nets plan exclusivity extension through Dec. 10

The bankruptcy court overseeing the Chapter 11 proceedings of Exide Technologies extended the exclusive period during which only the company could file a reorganization plan through Dec. 10, according to a court order entered on Friday.

The corresponding exclusive period for the company to solicit votes to a plan was also extended, to Feb. 10, 2015, the order states.

As reported, the company filed its motion seeking the exclusivity extensions on July 31, saying it needed the additional time “to allow on-going negotiation of a confirmable plan of reorganization and to garner maximum consensus around that plan.” (See “Exide seeks to extend exclusivity as plan, exit loan talks heat up,” LCD, Aug. 4, 2014).

A hearing on the motion was scheduled for Sept. 3, but the court issued its order prior to the hearing since there were no objections filed to the requested extension, court filings show. – Alan Zimmerman

 

 

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Europe: Tikehau Group hires Bleunven, Bucelli

logo-TCA-2013-RVBThe Tikehau Group has hired Nathalie Bleunven to develop the firm’s corporate direct-lending activities, while bringing on Luca Bucelli to develop its Italian activities.

Bleunven was managing director in the midcap leveraged finance team at Societe Generale CIB from 2000 to 2013. Since 2013 she had been a managing partner at mezzanine fund Indigo Capital Finance.

Bucelli started his career in 2004 with the corporate finance team at Lehman Brothers in London and Milan. Most recently he was at AlixPartners, where he worked on financial and operational restructurings.

The Tikehau Group, which was founded in 2004, invests and manages long-term capital for institutional and private investors in asset classes such as credit, listed and private equity, and real estate. In 2007 the firm launched Tikehau IM, an investment company specialising in fixed-income products. The Tikehau Group is majority held by its managers, alongside institutional partners such as Crédit Mutuel Arkéa, UniCredit, and Amundi. It manages over €4 billion in investments and has €800 million in shareholders’ equity. – Staff reports

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Loan mutual fund outflows ease; ETFs show inflows

Cash outflows from bank-loan funds eased further to $298 million during the week ended Aug. 27, from $540 million in the week ended Aug. 20 and $687 million the week prior, according to Lipper. The influence of bank-loan ETFs on this week’s number was negative 17%, as Lipper recorded a $51 million inflow into ETFs. This compares to a $47 million outflow last week.

There now have been 18 weeks of outflows over the past 20 weeks, for a total outflow of $10.2 billion over that span, which follows a record-shattering 95-week inflow streak that totaled $66.7 billion.

The trailing-four-week average improves slightly to negative $755 million per week, from negative $782 million last week. This measure remains below the recent peak of negative $858 million, from the week ended June 11.

The year-to-date fund-flow reading pushes deeper into negative territory, at $3 billion, based on a net withdrawal of $3.6 million from mutual funds against a net inflow of $509 million to ETFs. In the comparable year-ago period, inflows totaled $39.7 billion, with 11% tied to ETFs.

The change due to market conditions was a positive $143 million, versus total assets of $104.4 billion at the end of the observation period. The ETF segment comprises $7.9 billion of the total, or approximately 8%. – Joy Ferguson

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