Middle Market Leverage Finance: COVID-19 Update

Our Debt Advisory Group spoke with 50+ middle-market lenders to gauge their current viewpoints on in-process financings as well as prospective new deals. Provided within this report is a summary of the commentary that we’ve gathered from lenders over the last few days. Given the very fluid environment, their viewpoints are likely to evolve over the next several weeks, if not days. Key themes we are hearing include:

• Change in lender’s mindset towards recessionary scenarios
• Lender focus is on protecting (not growing) their loan portfolio
• Borrower focus is on generating liquidity – quick
• Eventual new deal originations to focus on counter-cyclical sectors
• Precious credit capital will be allocated by lenders
• The secondary market will impact availability of debt in the primary market

Click the provided link for the full report. Please feel free to reach out to Kent Brown, Head of Capstone Partner’s Debt Advisory Group, if you have questions, or if we can be of assistance.