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As Demand for Paper Surges, Leveraged Loan Issuers Move to Trim Interest Rates

leveraged loan repricings

With the U.S. leveraged loan market in overdrive, repricing activity is surging to levels not seen since May 2015, with lower-rated issuers taking full advantage.

Nearly $31 billion of leveraged loan debt was repriced in September, up dramatically from the $13.4 billion in August and well above the monthly average since May of this year, according to LCD, an offering of S&P Global Market Intelligence.

And issuers are saving big-time in the process, saving an average of 76 bps from their spread over LIBOR via these deals in September.

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.