The latest edition of the BDC Quarterly Trends and Analysis report provides a two-year look back at pricing trends for all issuances and exits for 40 BDCs Debtwire tracked through 1Q17. The BDCs tracked carry the largest market capitalizations in the industry. This quarter we’ve added new industry analysis, featuring average cash coupon and first lien deal count per sector.
The total count of first lien issuances has increased sequentially over the last four quarters. We continue to see tough conditions for lenders and favorable conditions for borrowers. Average first lien cash interest tightened QoQ and YoY to 7.8% in 1Q17, from 8.1% in 4Q16 and 9.3% in 1Q16.
In 1Q17, we tracked the largest total deal inflow from the BDCs in the following sectors (as classified by Debtwire): industrial products, healthcare, services and computer related technology. This quarter, the retail industry had the lowest average first lien price (fair value/principal) at 90%, illustrating the tough environment in the sector.