17Capital’s Post

What the NAV lending data tells us... NAV financing allows a GP to borrow against assets held in its funds, typically to fund add-on acquisitions, refinance existing debt or – more controversially – fund distributions to LPs. Meanwhile, NAV lender 17Capital says that of existing NAV loans, around 89% have been used for “money-in” purposes, such as growth capital or add-on acquisitions, while only 11% have been used for “money-out” purposes, such as funding distributions. Read the full insights piece here: https://lnkd.in/eQSw_6iP #NAVlending #privatecredit #privateequity #NAVLoans

Senior Managing Director Stephen Quinn recently spoke to With Intelligence about the future of NAV lending and how it has emerged as a pivotal tool in the evolving landscape of private equity, offering an alternative source of capital that can unlock significant value. Read the full article here: https://lnkd.in/eQSw_6iP #NAVfinance #PrivateCredit

Today on LevFin Insights, details emerged on the $520mn refinancing for STV, and we saw again the reality of tighter credit spreads. The loan priced at S+525, though it is subject to a grid with two step downs to S+475. Oak Hill Advisors, L.P., Blackstone and KKR made up the lender syndicate, while the financing comprised a $350mn term loan, $100mn delayed-draw term loan and a $70mn revolver. Underwritten off a roughly $70mn EBITDA, leverage at closing stood at 5x. https://lnkd.in/dFHSRHYx

Very timely article in Private Funds CFO by Hark Capital Founder and Managing Partner Doug Cruikshank highlighting the increase in market recognition and acceptance of NAV loans. Please click below to read the full article in which Doug highlights the changing LP perceptions of NAV solutions as sponsors continue to use them "to improve the returns of the sponsors portfolio, to the benefit of the sponsor's LPs". #NAVLoans #NAVFinancing #PrivateFunds #PrivateMarkets #PortfolioTool #ValueCreation #PrivateCredit #FundFinance #NAVSolutions #ManagementCompanyFinancing #PrivateEquity #GrowthEquity #PortfolioSolutions #Investment

New story for Reorg w/ Geoffrey B. - banks have begun premarketing leveraged loans in a $8.5 billion debt financing package backing Silver Lake's $13 billion buyout of sports and entertainment company Endeavor at a margin of about 350 bps to 375 bps over the SOFR rate, according to sources. Endeavor’s $8.5 billion deal, one of the largest debt financing packages backing a leveraged buyout so far this year, is expected to include mostly leveraged loans, a bridge loan and PIK component additionally, sources said. Read more at Reorg: https://lnkd.in/enePxvue #leveragedfinance #leveragedbuyout #leveragedloans

🌠 £135m Funding Secured for Refinancing! 🌠   Elite Commercial REIT has obtained a committed offer for debt facilities of up to £135 million from financial institutions – a key milestone in putting Elite REIT on a strong footing as we take strides forward with our refinancing plans for Elite REIT.   🤝 Committed offer obtained from new lending relationships, supported by Elite REIT's sponsors ☂ Diversification of funding sources 💷 Funds from the credit facilities will be used for refinancing of existing loan facilities   For more details, please refer to: Press Release https://lnkd.in/g-YzsQ2w   #elitecreit #EliteREIT #singapore #REIT #reits #realestateinvestmenttrust #investinginrealestate #investing #ukrealestate #SREIT #SingaporeREIT #realestate #milestones2024 #refinancing 

If you haven’t read our Q1 2024 bonds report yet, what are you waiting for? Here’s a summary of what you can expect from our deep dive: 📌 European high yield companies issued €24bn in Q1 — over 2x higher than the €11.6bn issued this time last year 📌 Refinancings dominated, accounting for 84% of issuance 📌 New money deals were thin on the ground, with no LBOs and few recapitalisations or acquisitions 📌 Spreads for risk assets are now exceptionally tighter, with the iTraxx Crossover closing Q1 at 299bps — well inside the 375-475bps range for most of 2023 Check out the full report now — link in comments. #levfin #highyield

Buyout-related leveraged loans and direct lending volumes have seen a spectacular uptick in 2024 thus far, recording a 75% and an 89.4% YoY increase, respectively. Leveraged loan volumes have soared due to three outsized deals, while direct lending saw a renewed interest in buyout transactions this year. In contrast, high yield bond volumes took a nosedive to USD 4.3bn in 1H24 from USD 9.2bn in 1H23, reflecting a 53.6% decrease in leveraged buyout-related volumes. For more insights check out Debtwire and Mergermarket's 1H24 US Buyout Highlights report here: https://lnkd.in/eShp3gZP

Leveraged buyout (LBO) debt financing continues to face a significant funding gap at a time when private equity funds continue to hold record-high levels of capital available for such deals; what is often referred to as “dry powder.” We believe that relatively low defaults and rising demand, particularly for LBO financing suggest a positive outlook for the #privatecredit markets ahead. Read more in the latest edition of the #AltsQuarterly. https://lnkd.in/ey6cXGE3

Instructure LBO Kicks Off Buyout Flurry   The USD2.25bn debt financing package backing the leveraged buyout of New York-listed educational technology company Instructure Holdings by KKR launched this week, as the broadly syndicated loan market re-opened after the summer break.   The deal is currently split between a seven-year USD1.685bn TLB, which currently has terms of SOFR+325bp-350bp and an issue price of 99.5, as well as an eight-year USD365m 2LTL, with terms set at SOFR+525bp-550bp and an issue price of 99.5.   This is the eleventh second-lien loan that has been in the market this year, and like all but one of the second-lien loans issued so far it is only 200bp behind the first-lien loan, way below the historic 325bp-375bp range. Reported by Jack Unwin.   Read the full article on our Leveraged Finance (LFRD) Bloomberg page or sign up to this service by contacting sales@bondradar.com. #LeveragedLoans #Loans #CapitalMarkets #DebtCapitalMarkets #SyndicatedLoans #LBO #BuyOut #Instructure #KKR