US Leveraged Loan Launches Exceed $30b in post-Labor Day Rush

The US leveraged loan market recorded $24.6b of new launches on Tuesday, September 8, marking the busiest post-Labor Day surge in issuance since Bloomberg began tracking the data in 2013. With an additional $11b brought to market on Tuesday, the weekly launch total has climbed to $35.7b – the first time since May that weekly launches exceeded the $30b mark. The pickup represents an encouraging rebound following a three-week stretch in which just $2.8b was marketed to investors.

The largest transaction to enter syndication this week was Mavis Tire’s $3.62b term loan refinancing, which will extend the TL’s maturity to May 2033 and will be fungible with the company’s existing debt. Acquisition financing has also contributed to the renewed pipeline, including Saber Power’s $1.25b TLB and $225m DDTL, supporting its buyout by Veritas Capital.

The resurgence in primary issuance comes ahead of next week’s Federal Open Market Committee meeting, where investors will be closely watching for further guidance on the path of monetary policy, with market expectations increasingly focused on the possibility of a rate hike before year-end. Average secondary market loan prices have increased over the last month, having risen to an average of 95.80 on September 8 from 95.05 on June 30, further supporting the current wave of dealmaking.