US asset based loan lenders supported over US$149bn of issuance in 2023, the second highest annual total on record and over 20% of total leveraged loan volume for the year. The numbers provided an incomplete view of the 2023 ABL deals calendar, however. Less than US$33bn of issuance represented new loan assets, largely in the form of add-ons and the exercise of accordion options. In contrast, at nearly US$117bn, refinancings represented over 78% of total annual issuance. Most of this came in the form of amendments allowing for the transition from Libor based pricing to SOFR based constructs. Few included new or incremental terms which risked existing syndicates. Against this backdrop, the maturity wall for ABL loans barely shifted in 2023 and lenders must address US$188bn or 53% of current outstanding ABL commitments which are set to mature in the next two years.
(Past performance is no guarantee of future results.)
Private Credit Defaults 101: Back to School
As Labor Day approaches, the unofficial end of summer is upon us. But, before we get too sad, there is also the familiar back-to-school energy.