Marlborough Partners, the independent debt advisory firm, today published its report on the European leveraged finance market for Q2 2018.
The report, analysing data from a number of sources, shows UK leveraged loan volumes were €5.4bn in Q2‘18, 29.5% higher than the same period last year as strong issuance levels continued in 2018. These high issuance levels were driven by a marked increase in M&A activity which began towards the end of 2017 and then delivered consistent deal flow throughout H1’18. 84% of total loan deal activity in Q2’18 was driven by M&A, the highest proportion since Q3’11. The prevalence of M&A activity has driven slightly wider pricing, reflecting greater lender negotiating power on new money transactions as opposed to opportunistic repricings and refinancings.
The Q2 2018 Report also looks at the concentration of the lending landscape in Europe’s largest markets the UK and Germany. Markus Ehrler, Partner, said: “The leveraged lending landscape in Europe’s largest markets UK and Germany is characterised by both pan-European and local players. While debt funds are mostly pan-European, the banking landscape is diverse with domestic players playing an important role. The banking market in the UK is highly concentrated with only 6 banks accounting for 80% of all participations for LTM June 2018, while the German-speaking banking landscape in the mid-market is much more fragmented with 17 banks representing 80% of all participations.”
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About Marlborough Partners
Marlborough Partners, based in London, Frankfurt and Madrid, provides specialist, independent advice to private equity firms, portfolio companies and corporates, on sourcing and structuring debt and other non-equity finance. Since 2003, the Marlborough team has advised on 245 completed transactions – from the simple to the highly complex – comprising over €50bn of primary market debt issuance, waivers and amendments and loan restructurings in eleven European jurisdictions. For further information, visit www.marlboroughpartners.com