KBRA Direct Lending Deals (KBRA DLD)

In today's KBRA DLD Weekly: How covenant packages have changed over the last three years in direct lending. Contact Niki Masino to trial our news & research!

Contact Niki Masino to trial KBRA DLD's news and research. One of today's highlights:

Which private credit borrower segments saw the steepest spread drops? Our Direct Lending MONTHLY Insights deck is out to KBRA Direct Lending Deals (KBRA DLD) subscribers; tracking pricing across structures & issuer EBITDA. Contact Niki Masino to start your trial and lock in 2024 subscription rates. #privatecredit #privatedebt #privateequity #directlending

Later today for subscribers in our Direct Lending MONTHLY report: New private loan stats on LTV and Purchase Price Multiples back to 2021! Contact Niki Masino or Joseph Annaruma to start your trial and lock in 2024 subscription rates.

Private credit analysts wanted! Great opportunity to join our team at KBRA Direct Lending Deals (KBRA DLD)!

Today on KBRA DLD: Private loan trading remains ‘by appointment’ only, even as jumbo volume surges Contact Niki Masino to trial our News & Research!

The ratings side of KBRA has published research on what impact a 3% terminal rate would have on 1,067 private credit borrowers the agency assessed in the first half of the year. The good news: Most would see meaningful relief, which supports the agency’s and KBRA Direct Lending Deals (KBRA DLD)’s low default forecasts. The bad news: a drop to 3% is probably too little, too late for issuers really struggling. The analysis looked at positive EBITDA companies, a negative EBITDA cohort and ARR borrowers. Three key takeaways: 1. About 70% of borrowers with positive EBITDA would see their interest coverage ratio (ICR) increase 0.25x or more, an important boost to borrowers' financial stability. 2. Companies with weaker starting financial positions will benefit the least from rate cuts, due to higher leverage of over 10x at the median, and debt costs over 200 bps more than the strongest private credit borrowers. 3. Out of the 1,067 borrowers, KBRA found that roughly 25% had an ICR below 1.0x in 1H24. About 90 borrowers would see their ICRs boosted to above 1.0x, assuming a 3% terminal rate, leaving roughly 16% of the total population still underwater. Log in for free to find the report at kbra.com/insights/private credit.

We're also seeking a private credit analyst for European research! Apply below. #privatecredit #privatedebt #privateequity #directlending

We are expanding research and looking for an eager private credit analyst to join our team in NY! Apply below. #privatecredit #directlending #privatedebt #privateequity

We are hiring! Seeking experienced US reporter that knows leveraged finance and how to work contacts. DLD delivers best-in-class coverage of the US and European private credit markets. Join our team of market veterans! Apply below.