Feature Articles

Creditflux – Sponsors Holster Revolvers for Delayed-Draw Loans

NEW YORK, January 4, 2016 – I’ve discussed at length the development of revolving credit facilities. Corporate borrowers and private equity sponsors have continued to utilise this tool to maximise flexibility for acquisitions, dividend recaps and working capital. But during 2015 we’ve noted the increasing popularity of another weapon in an issuer’s financing arsenal: namely, the delayed-draw term loan (DDTL).

Creditflux – The Mid Market and The Myth of Loan Liquidity

NEW YORK, December 3, 2015 – One of the enduring fictions about middle market loans relates to their tradability. Smaller loans, the theory goes, are priced at a premium because there are fewer ready buyers. Unlike their broadly syndicated cousins, loans below $250 million have no effective secondary market. That’s the idea, anyway.

Creditflux – Don’t Listen to the Talk, Mezz Definitely Isn’t Dead

NEW YORK, November 5, 2015 – These days it’s popular sport at loan conferences to kick the mezzanine asset class. After the credit crisis, when some investors in subordinated debt took a licking, the common question heard among market players was: “Is mezz dead?” Today the refrain is: “Is mezz still dead?” And yet, in conversations with practitioners, it seems mezz is alive and well.

Creditflux – Mid-Market Syndicate Game Changes Again

NEW YORK, October 8, 2015 – When your correspondent began distributing middle market loans (in the waning days of the Reagan administration), the concept was considered novel. Back then money-centre banks underwrote and syndicated mainly large corporate loans to other relationship banks. Smaller deals were mostly self-arranged, club affairs among regional banks and finance companies.