Boosted by a surge of opportunistic deals and a spate LBO credits, institutional issuance in the U.S. leveraged loan market has jumped to $66.1 billion in May, the most since the record $78 billion in January 2017, according to LCD.
While institutional activity was up across the board, refinancings returned in a big way, with $24.7 billion of issuance this month, more than double the amount in April and the most since the $33.5 billion in March 2017.
As with refis, institutional recap/dividend volume climbed in May, to $6.6 billion, the most since November and close to double the average during the first four months of the year.
With this month’s surge in activity, overall institutional YTD issuance continues to creep closer to the pace seen in 2017 (last year was a tough act to follow, of course, with a record $503 billion in volume). Through May, loan issuance totals $229 billion, down 11% from the same period in 2017.
Aided by a healthy $14.5 billion this month, YTD LBO loan issuance totals $44.6 billion, slightly ahead of the same period one year ago ($43.9 billion). — Staff reports
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