Leveraged lending in the first half of 2019 witnessed a modest rebound from a choppy end to 2018 as uncertainty about the future of the economy continues to raise concerns.
Despite current and potential trade wars on multiple fronts, weakening macroeconomic data and interest rate choppiness, pricing and terms marginally improved in favor of issuers in Q2.
The ample capital supply / limited deal flow imbalance continues to cause a unique window where senior and alternative lenders have migrated down to the lower middle market in search of deal flow, providing aggressive and unique financing availability.
Bridgepoint expects debt markets to continue to remain flat throughout the rest of 2019, due to the excess supply of private debt capital. We advise company owners to act now to strengthen their balance sheets while the markets remain favorable.
Leveraged Finance Options / Scenarios
Sizable cash dividend to the owner(s) while maintaining 100% ownership of their Company
Flexible / Reduce Debt Service
With low amortization (20-100 year) / required debt service, institutional debt enables higher flexibility and cash flow investment into growth
Acquisition / Growth Financing
Capital to allow the owner(s) of the company to pursue aggressive growth initiatives and / or buyout of select shareholders
Committed Capital Partner
Partner to provide strategic guidance, purchasing power and additional capital for growth, including acquisitions, or liquidity