With USD Libor at historical lows, Libor floors have become the norm with 95 per cent of loans including floors with ranges of 1.25 per cent to 3.00 per cent, according to Debtwire’s leveraged loan report.

During the first half of 2010 Debtwire North America covered 133 leverage loans issued by 112 companies.

Debtwire Europe covered 46 new loans issued by 20 companies totalling just under EUR11.3bn, 18 per cent ahead of the volume in the first half of 2009.

LBO-driven issuance kicked off in the second quarter, totalling EUR4.9bn associated with 39 deals.

Nevertheless, secondary buy-outs and refinancing came to dominate the first half of 2010, while new acquisitions remained scarce.
 
Kevin Connor, senior analyst at Debtwire, says: “The second half is shaping up to be just as busy as the first, with USD37.5bn of term debt freed to trade during the third quarter and another USD12.6bn still being marketed. What’s really interesting is that the primary use of proceeds has shifted to acquisition and leverage buyouts combining for approximately USD20bn of issuance from refinancing at USD8.6bn in the third quarter.” 
 
North America overshadowed European issuance in terms of capital committed and number of deals, but offered less variety in terms of seniority and tranche types. Refinancing topped out as the main use of proceeds in North America, while LBO financings took the top spot in Europe.