TLDR

• €103bn of term loan Bs were issued in the first half of 2024, marking a 15% increase over the same period in 2021. There is an additional ~€17bn set to issue in July
• After a wave of repricings in February, a second wave hit in May and June causing an average margin reduction of ~60bps. We estimate a further €19bn is ripe for repricing, but there has been push back of late
• Single Bs continue to tighten, with averaging margins of 410bps in Q2, compared to 465bps over Euribor in 2023
• LBOs have topped 2023 levels, but new money is still sparse

The European leveraged loan market has had a blockbuster year. €103bn of TLBs have been issued through to the end of June and ~€17bn is set to issue in July, setting the scene for a great sequel in the second half of the year.

As one senior banker puts it: “Central banks started cutting interest rates, and banks feel very comfortable in underwriting and lending to companies. If we don't see some deals, it's a sponsor problem.”

Sources expect this level of primary activity to continue until the summer break, with buysiders working away on a few pre-marketings set to launch ahead of August.

"The market is very constructive,” Gauthier Raymondier, partner at Bain Capital Credit, told 9fin. “Syndicating a €1bn plus TLB transaction is easily achievable for the right credits. The HY bond market is also strong and provides an alternative to the leveraged loan market.”