I was in NYC last week for a routine check-in with some private equity funds to discuss M&A transactions, particularly concerning CMF’s deal origination, consulting, and executive search practices. Like the bright, sunny weather that day, it seems as though the clouds are firmly breaking on the leveraged lending market – overall, it seems that the rates and terms for leveraged lending are improving. In fact, for the first time in nearly four years, I was told that a lender recently provided a “cov-light” term sheet!
Optimism in lending was also noted in the following news item from Leveragedloan.com regarding the CLO market: “Managers printed 15 new deals totaling $5.83 billion, which is the strongest quarter for the new-issue CLO market since the first quarter of 2008, when issuance totaled $6.02 billion.”
These examples seem to indicate that the banking community is regaining its sea legs after being “over-served” through 2008. Look for deal-making to accelerate throughout the remainder of 2012.