2Q21 middle market syndicated loan volume of US$46bn was at its highest since 2Q18

The syndicated middle market was at full speed in 2Q21 with volume soaring to its highest level in 3 years at US$46bn. New money lending of US$23bn was up 30% from 1Q20 and was at levels not seen since 2017.

Refinancing volume of US$23n in 2Q21, almost doubled the total logged in 1Q21; lagging one quarter behind the large corporate market, which saw a jump in refis in 1Q21. In the non-sponsored market syndicated volume was US$29bn, with new money increasing for the fourth quarter in a row to levels not seen in 7 years. While M&A remains at low levels, lenders that focus in the space said that they are seeing some family-owned businesses expanding organically.

In the sponsored market, syndicated loan volume increased to US$17bn, with a nice jump seen in LBO activity. While volume was up, most respondents to Refinitiv LPC’s Middle Market Investor Survey said they were not able to lend as much as they wanted to in 2Q21. In turn, competition has been intense, and terms have deteriorated significantly across the board.