With global markets in freefall and US cities increasingly restricting business and social activity, the COVID-19 pandemic has more or less shut down the primary market for leveraged loans. It’s unclear how long the shutdown will last, but it spells trouble for near-term refinancing efforts.
With that in mind, Debtwire has compiled a list of institutionally held leveraged loans maturing in 2020 and 2021. Based on average bids from Markit as of the end of last week, some of these loans have experienced bid declines of 50% or even 70% since 21 February.
Click this link for an expanded version of the table, including links to relevant Debtwire coverage published within the past six months.
Some of the issuers, like Del Monte Foods and Advantage Solutions, were already attempting to refinance their debt but pulled back amid the volatility. Other issuers that have recently postponed refinancing deals—albeit of further-out maturities—include PPD and Bausch Health.
Another name on the list—gym operator Town Sports—tried and failed to refinance last year, and has sunk to distressed territory in recent weeks. Gym operators are expected to face earnings pressure amid social distancing measures such as limits on venue capacity.
Also featured are casino operators Mohegan and MotorCity. The gaming sector is expected to face major headwinds from the pandemic, with some resorts closing their doors entirely. Travel and leisure credits have seen some of the biggest declines in recent weeks.