Powered by

Will growth continue in 2018?

In the last 5 years, new financing leveraged buyout (LBO) loans saw the highest year-on-year growth in 2017, with volume up 38% globally. Region-wise, not only was Americas volume strong, but the number of deals also increased—up 42% to 310 deals in 2017 from 218 in 2016. In EMEA and Asia Pacific, though activity fell from 2016 to 2017, volume surged by 46% and 73%, respectively, thanks to growth in average deal size.

After an exceptional 2017, new LBO loans globally have fallen 20% year-on-year to $26.5bn (via 60 transactions) this YTD. However, the pipeline is building. Volume for such deals that have been announced but not yet signed totals $23.1bn.

LBO pipeline is building up in the US

The LBO pipeline is promising with deal volume of $19.0bn already announced in the US. By sector, publishing takes the lead with 46.0% of volume (due to Thomson Reuters’ upcoming $8.7bn loan). In second place is technology with 18.4% of volume, followed by machinery with 10.5%.

Refinancing opportunities

A total of $494.1bn in new LBO loans will mature by 2026 globally. With an average tenor around 5.9 years, such debt has created a peak in 2022, when $84.7bn of debt will mature.

As a result of growth in both volume and average deal size in 2017, LBO loans signed last year built up a debt tower in 2024. Out of the $119.0bn due that year, the technology sector has the highest share (17.6%), followed by healthcare (14.1%) and professional services (12.7%).

With this new debt tower, the market will likely see two massive refinancing waves in the next few years.


– Written by Szilvia Farkas, Dealogic Research
Data source: Dealogic, as of March 8, 2018

Contact us for the underlying data, or learn more about the powerful Dealogic platform.

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.