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European Leveraged Finance: Continued Refinancing Wave

In partnership with the Association for Financial Markets in Europe (AFME) and the European High Yield Association (EHYA), SIFMA released the European High Yield & Leveraged Loan Report for the first quarter of 2010. 

The fifteen page report on the state of European leveraged finance found that in analyzing the market both leveraged loans and high yield bonds issuance grew over the prior quarter due primarily to refinancing, or to pay down existing debt. Issuance of European leveraged loans and high yield bonds totaled €26.5 billion in the first quarter, up from €24.6 billion.

Leveraged loan issuance—including first lien, second lien and mezzanine financing—counted some €15.9 billion in the first quarter of 2010, up 142.4% from €6.5 billion in first quarter 2009. As in 2009, 2nd lien and mezzanine financing remained relatively flat.

Primary issuance in European high yield bonds, excluding emerging market issuance, reached €9.4 billion. Emerging market issuance totaled € 1.16 billion. Developed market deals were led by telecommunications, construction, and food and beverage industries.

In addition to providing an overview of the market, including commentary on returns and credit quality, the report with over 40 charts and tables, provides detail on high yield bonds and loan issuance by type, size, sector, currency, issuer, among other factors.

Leveraged loan data are sourced from Thomson Reuters LPC and Dealogic. High yield bond transactions are sourced primarily from Dealogic, with supplemental information from Bloomberg. Other sources include Fitch Ratings, S&P and Bank of America.

For the complete European High Yield & Leveraged Loan Report, click here.