Middle Market Leverage Finance: COVID-19 Update

Published on: 03/20/2020

Middle Market Leverage Finance - Covid 19 Update

This week, the Debt Advisory Group of Capstone Headwaters spoke with 50+ middle-market lenders to gauge their current viewpoints on in-process financings as well as prospective new deals. Provided within this report is a summary of the commentary that we’ve gathered from lenders over the last few days. Given the very fluid environment, their viewpoints are likely to evolve over the next several weeks, if not days. Key themes we are hearing include:

  • Change in lender’s mindset towards recessionary scenarios
  • Lender focus is on protecting (not growing) their loan portfolio
  • Borrower focus is on generating liquidity - quick
  • Eventual new deal originations to focus on counter-cyclical sectors
  • Precious credit capital will be allocated by lenders
  • The secondary market will impact availability of debt in the primary market

Click the provided link for the full report. Please feel free to reach out to Kent Brown, Head of Capstone Headwater's Debt Advisory Group, if you have questions, or if we can be of assistance.

Key Contacts

Kent Brown

Head of Debt Advisory Group

Brad Harrop

Vice President

Stephen Lewis

Managing Director

Adam Morris

Vice President

Brian Schofield

Managing Director