Debt Explained Loan Market Update finds continuation of borrower-friendly terms but with less optionality
The loan market has seen a continuation of the looser, more borrower-friendly terms from Q1 but with less optionality. With the referendum overshadowing the market, was this a reflection of borrowers taking the "safe" route to credit by not pushing terms too far? Only time will tell.
Q2 highlights include:
- Soft call protection increasingly standard in European deals
- Trend away from automatic prepayment in full on a Change of control reversed
- MFN sunset periods return to the fore
About this report
This report refers to data drawn from Debt Explained's Representative Loan Terms (RLT) database which tracks information from syndicated loans in the European leveraged loan market. The report is based upon those deals which in the market during 1 April to 30 June 2016, as indicated, and which were reviewed by Debt Explained during this period.
RLT offers a unique oversight of the European leveraged loan market with more than 350 searchable terms. A staple resource for all leveraged finance market participants - including capital markets bankers, legal advisors and asset managers - Debt Explained data reacts to the market in real time.
To find out more about RLT or to arrange a trial, contact us.