The Wire — Debt Advisory Perspective
While the deal environment remains favorable, the actual volume of completed deals is relatively low, as refinancing loan volume is down substantially from this time last year, despite peak conditions.
Debt capital continues to be in abundant supply as we see new lenders and debt funds popping up seemingly on a weekly basis. Middle-market lenders are structuring and pricing deals similar to the broadly syndicated market, and competition is heating up across the entire capital structure. If anything in this market can be described as a “soft spot,” it is commercial banks’ appetites for sponsor-backed cash flow deals, which are being curbed by the leveraged lending guidelines established under the OCC.
