US junk debt investors cautious of leveraged loans as economy slows

Leveraged Loan News

US junk debt investors cautious of leveraged loans as economy slows
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Leveraged loan deals are expected to pick back up after a stabilization in markets over the past week, although some investors say they are cautious about...

- Leveraged loan deal s are expected to pick back up after a stabilization in markets over the past week, although some investors say they are cautious about junk-rated loans if the economy weakens.

At least two leveraged loan deals hit the market on Tuesday, including a $160 million add-on to virtual dataroom Datasite’s cross-border term loan and a $253 million repricing of for-profit education operator Adtalem Global Education’s term loan, according to PitchBook. Datasite and Adtalem did not immediately respond to a request for comment.

"For leveraged loans, a wave of volatility did throw a wrench into the works for the loan primary... forcing several opportunistic transactions to the sidelines," said Marina Lukatsky, global head of credit research at Pitchbook. "In the loan market, there were a number of repricings refinancings that were either pulled or just didn’t launch...we could see some of those come back," he said.

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