The U.S. leveraged loan default rate continues to hold well below historical levels, ending February at a relatively slim 2%, according to LCD.
A downgrade of gun manufacturer Remington Outdoor to D was the only default during the month (Remington had been in restructuring talks well before the resurgence of the current gun control debate in the U.S., prompted by the high school shooting in Parkland, Fla.).
Perhaps as important as the actual default rate: Radio/media concern iHeart, with some $20 billion in outstanding debt resulting from an LBO of the company in 2008, has been negotiating a debt swap for nearly a year, and there have been published reports recently saying iHeart could file as early as this weekend. That would entail some $6.3 billion of subsidiary Clear Channel debt, which would lead to a jump in the U.S. leveraged loan default rate to roughly 2.73%, according to LCD. – Staff reports
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