Leveraged Loans for Take-Overs and LBOs are Back
Banks have again started to provide large bridge financings for deals, and in some case keep all of the lending business for themselves rather than spread the risk over a syndicate, an indication of just how competitive the world of corporate and commercial lending is becoming. Take for example the JPMorganChase $20 billion unsecured bridge loan to fund AT&T’s $39 billion purchase of T-Mobile USA from Deutsche Telekom.
Small Business and Middle Market Outlook 2010
Forbes Insights, in association with CIT, recently published the report “U.S. Small Business and Middle Market Outlook 2010”.
What’s the difference between “Middle Market” and “ABL”?
For most banks and finance companies with more than $1 billion in assets, commercial lending is typically segmented into Large Corporate, Middle Market, and Business Banking. “Middle Market” and these other segments are generally understood to describe a type of borrower, whereas “ABL” (asset based lending) refers to a type of loan.
New England Venture Capital Activity up 23%
There were 90 venture capital fundings in New England in Q1 2010, according to the PwC/NVCA MoneyTree™ Report based on data from Thomson Reuters. That represents a 23% increase over the same quarter in 2009. The recently published report details venture capital activity nationally for Q1 2010, as well as 2009 and prior years.
PEGs bring new life (and capital) to Commercial Lenders
Two commercial finance companies focused on lending to small and middle-market companies received new capital investment from private equity firms in May.
Cooley LLP Presents Report on Venture Financings in Q1 2010
In their most recent survey of venture capital financing transactions, the law firm of Cooley LLP notes that pre-money valuations were up in Q1, and there was a material increase in the number of financings with pre-money valuations north of $100 million.
Bernanke Sees `Reasons for Optimism’ on Bank Lending (Bloomberg)
Fed Chairman Ben Bernanke, speaking this morning at an event in Chicago, said “Although bank credit remains tight, I see some reasons for optimism. The economy is recovering, and banks’ senior loan officers expect a “modest reduction in their troubled loans” over the next year, outside of commercial real estate.”
New Data: The Economic Recovery is Underway
The U.S. economic recovery is underway with a 3.2% increase to GDP in the first quarter, according to new data today from the Commerce Department
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