Average WE unitranche size rockets

Source: Debtwire Par

The total WE unitranche volume for the year is expected to come in higher than last year and lower than the peak volumes seen in 2019. Around EUR 6.8bn has been raised in 2021 to date compared with EUR 5.8bn and EUR 8.6bn secured over the same period in 2020 and 2019, respectively.

Where 2021 has really shined is in the size of the unitranches issued. The average size in the year to date stands at EUR 189m, making up for the low of deal count of 36. This far surpasses average deal sizes of EUR 125m and EUR 128m in 2020 and 2019, respectively, despite their relatively high deal counts of 47 and 67.

The top three unitranches of the year have been issued by UK-based borrowers, with UK holiday company Bourne Leisure’s GBP 1.8bn facility leading the pack and skewing the average figure significantly. German remote payments firm SumUp Payments’ EUR 750m unitranche places second, while UK specialist professional services company Davies Group comes in third in 2021 so far with its GBP 520m facility.

Currently, with their low leverage and high pricing relative to historical levels, unitranches are more compelling than ever for issuers. Given the ferociously active environment so far seen in primary syndication, the further encroachment of unitranche sizes into its territory is forcing the direct-lending market to vie for attention.

(Past performance is no guarantee of future results.)