At $10.2 billion, middle market sponsored volume fell 12% from the second quarter, though it remains up from the $8.2 billion issued in the first quarter. From a cumulative standpoint, sponsored volume continues to fall short of 2015’s run rate: year-to-date volume stands at $30 billion, a 19% decline from the comparable period last year. 2016 may now shape up to be the slowest for sponsored lending since 2009.
In its Q2/16 Capital Markets Outlook, Fifth Street Asset Management noted that middle market sponsored loan volume increased to $9.2 billion from $7.9 billion, but first half volume has declined 30% from the same period one year ago.
Totaling just $7.33 billion, sponsored middle market loan volume reached a six-year low in the first quarter — exceptionally weak even when viewed against the traditional seasonal pattern of lighter volume. On the heels of a sluggish year in 2015, Fifth Street remained cautious in its outlook for the new year; yet, volume dropped more precipitously than expected. Sponsored issuance was down 45% from Q4/15 and 31% on a year-over-year basis.
Fifth Street Asset Management announced that its affiliate, Fifth Street Management, served as administrative agent and lead arranger for a $171 million one-stop financing facility to support LegalZoom.com.
As Fifth Street Senior Floating Rate approaches its one-year anniversary as a public company, the comapny has deployed the equity raised during its July 2013 IPO.
The Governor of CT announced $5 million in loans and grants to Fifth Street Finance to facilitate the specialty finance company’s move from White Plains, NY to Greenwich, CT.
Fifth Street Finance announced an amendment to its credit facility with Wells Fargo, which includes a 25 basis point reduction in pricing to LIBOR plus 2.5%, with no LIBOR floor.
Fifth Street Finance announced it has successfully closed its portfolio company acquisition of Healthcare Finance Group. Fifth Street also announced the appointment of Dan Chapa as new CEO of HFG.
Fifth Street Finance provided two separate one-stop financing facilities during the quarter ended March 31, 2013 – each more than $100 million.