Sponsors Tap Leveraged Loan Market for Dividend Payouts at Record Pace

• Click here to access Bloomberg’s Leveraged Finance Chartbook

With just two weeks before the start of the new year, dividend issuance has reached an all-time high in the US leveraged loan market. At $32.9b year-to-date, new money issuance supporting dividends surpassed 2021’s $28.9b figure for the most on record since Bloomberg began tracking the data in 2013. 

Earlier this month, companies including Groundworks and Envestnet tapped the market to issue incremental debt to fund dividend payouts, with Groundworks pricing a $450mm add-on TLB to fund a payout to KKR and Cortec Group, and Envestnet securing a $400mm incremental TLB backing a distribution to Bain Capital.

Contacts: Vincent Daigger
vdaigger@bloomberg.net