uploads///US Leveraged Loan Market Volumes

Leveraged Loans Primary Market Issuance Falls to Zero after Christmas Weekend

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Dec. 4 2020, Updated 10:52 a.m. ET

Primary market activity in leveraged loans

The issuance of US leveraged loans fell to zero last week. However, in the previous week, approximately $4.9 billion in dollar-denominated senior loans were priced, according to data from S&P Capital IQ-LCD.

The deal flow fell sharply, down from eight transactions being priced in the previous week to zero transactions priced last week. Senior loans are tracked by mutual funds such as the Oppenheimer Senior Floating Rate Fund A (OOSAX) and the Fidelity Advisor Floating Rate High-Income Fund Class A (FFRAX).

Similarly, in the high-yield bond market, there was no issuance last week in the face of 2016.

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No issuance of leveraged loans in the week ending December 24

Leverage loans issuance came to a grinding halt last week due to the holidays. However, during the previous week, Microsemi Corporation (MSCC) had issued Ba3/BB- rated leveraged loans worth approximately $2.2 billion for the acquisition of PMC-Sierra (PMCS) and to refinance existing debt.

Meanwhile, during that week, Konecranes Terex had issued Ba2/BB+ rated dollar-denominated leveraged loans worth $1.1 billion for the merger of Konecranes and Terex Corporation (TEX). TierPoint had issued leveraged loans worth $340 million for the acquisition of data center business of Windstream Holdings (WIN).

But how were outflows looking on the week of Christmas 2015? Continue to the next and final part of this series to find out.

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