In a recent survey of direct lenders, investment bankers, advisors, and attorneys, SRS Acquiom found that 93% are either actively looking for lending opportunities or open to new lending opportunities. This while 77% believe the economy is 6 to 18 months away from recovery.
Is default the new default?
News of significant bankruptcy filings — from Hertz to J.C. Penny, continues to grow. We asked our panelists what percentage of their loan portfolio is currently in default or have waivers in place. Approximately one quarter of the panel reported that less than 10% of their loan portfolio is in default or has been granted a waiver, while 16% of the panel reported over 50% of their loan portfolio has either been granted a waiver or is in default.
Our panelists are undertaking a variety of actions within their loan portfolios to support borrowers and try to stem the tide of default.
- 87% are allowing companies to defer payments and waive covenants
- 45% are providing additional funding under existing credit facilities
- 36% are requiring companies to make significant operational changes
Over the last 60 days, the majority of new activity this panel has seen has been focused on refinancing of distressed companies (77%) and securing DIP Facilities (60%). Yet, the COVID-19 impacts on the economy hasn’t stopped other types of lending facilities from moving forward. The panel reported seeing non-distressed refinancings (39%), acquisition financing (32%), and new large syndicated loan facilities (17%) in the last 30 to 60 days.
Complete Survey Data
Tap or roll over charts for data labels.
Are you or your clients currently looking for new lending opportunities?
What types of new loan opportunities are you seing in the market over the past 30-60 days?
What percentage of the loan portfolio you work on is currently in default or has a waiver in place?
Which of the following actions are you seeing Lenders take or pursue in their loan portfolios?
At this juncture, when do you anticipated the economy will begin to recover?
SRS Acquiom fielded the Barometer May 19-22, 2020. The sample size is 53 representing direct lenders, investment bankers, advisors and attorneys unless otherwise noted.