Contec Holdings‘ bankruptcy filing today pushes the default rate by number of issuers in the S&P/LSTA Leveraged Loan Index up to 1.21%, versus 1.06% in July. The default rate by principal amount is now 1.07%, versus 1.04% in July.
The default rate by issuer number moved above 1% in June after 10 months of being below even that minimal level, while the default rate by amount moved above 1% in May for the first time in over a year at the time.
The default rate is calculated on a rolling 12-month basis.
LCD’s shadow default rate moved to 1.23%, from 1.20% as of July. The total volume on the shadow list now comes to $790 million.
The credit facility impacting the default index is the $201 million senior secured credit facility held by Barclays Bank as administrative and collateral agent. The senior facility comprises a $20 million revolver and a $185 million term loan (L+475, 3% LIBOR floor). – Max Frumes