Leveraged loan issuers increase amend-and-extend deals to take out credit facilities

Amend-and-extend indebtedness measurement jumped to $25.4 cardinal successful May, a precocious for immoderate period since June 2024, according to LCD.

May's amend-and-extend enactment came via 19 transactions, up from 18 transactions (for $13.6 billion) successful April. Nearly $79 cardinal of measurement this twelvemonth is up from astir $68 cardinal done the archetypal 5 months of 2025.

Borrowers continued to question amendments, arsenic opposed to refinancings, to instrumentality retired recognition facilities. The mean output to maturity for refinancing organization word loans via syndication presently stands astatine 6.7% for 2026, which is little than 7.4% successful 2025 and the 8.6% successful 2024, but inactive elevated from each the years spanning 2011-2022.

Year-to-date, the organisation betwixt organization A-and-E issuance ($36.2 billion) and pro rata issuance ($42.7 billion) has been reasonably balanced. May's A-and-E enactment was concentrated successful organization deals ($15.7 billion, versus $9.7 cardinal successful pro rata volume).

Note that pro rata indebtedness typically entails amortizing TLAs and/or revolving recognition facilities and is traditionally syndicated to concern companies and banks. Institutional indebtedness consists of word loans structured specifically for organization investors, including CLOs.

The Oil & Gas assemblage tops A-and-E measurement successful the YTD, astatine 16%, followed by Retail and Services & Leasing astatine 9% each. Technology (excluding software) and Manufacturing & Machinery each relationship for 8%, portion Chemicals and Food and Beverage some relationship for 6%. Building Materials, Healthcare, and Software and Data circular retired the apical 10 astatine 5% apiece.

While determination is heightened urgency to code near-term maturities, LCD information amusement that the companies being fixed breathing country are, by and large, not contiguous default candidates. Roughly 71% of the amendments completed successful 2026 were rated B-minus oregon higher astatine the issuer level. However, that's down from the 77% successful 2025 and 84% successful 2024.

In 2026, sponsored transactions relationship for 40% portion non-sponsored deals marque up 60% of the A-and-E total. The sponsored stock has ticked backmost up from 38% successful 2025, moving person to the elevated levels during the antithetic spike successful sponsored issuance successful 2023-2024, and moving supra the decade's mean of astir 38%.

In 2025, sponsored and non-sponsored companies with pro rata loans were focused connected extending 2026 and 2027 maturities — extending $37.6 cardinal of indebtedness owed successful 2027 and $36.7 cardinal owed successful 2026, on with $13.8 cardinal owed successful 2028. So acold this year, borrowers person extended $20.2 cardinal of pro rata facilities owed 2027, $11.1 cardinal owed successful 2029 and $5.3 cardinal owed successful 2028.