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Update: Coronavirus-related US revolving credit drawdowns rise to $298B

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Update: Coronavirus-related US revolving credit drawdowns rise to $298B

LCD last week captured approximately $1 billion of corporate drawdowns from existing revolving credit facilities, across 13 deals. Some $298 billion via 737 borrowers has been captured since March 5.

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The activity reflects the intense corporate focus on liquidity, amid the economic shutdown due to the coronavirus pandemic. In more ordinary times, these revolving credits might go largely undrawn.

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Looking at broad industry sectors, Consumer Discretionary accounts for 40% of total RC drawdowns.

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Within Consumer Discretionary, much of the volume is from borrowers in the Automobile Manufacturers segment.

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Of the data so far, lesser-quality single-B issuers, or lower/unrated, account for 25% of the overall volume, by corporate credit rating.

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The maturity wall for these revolving credit drawdowns for both the investment-grade and speculative-grade segments peaks in 2024.

This data is sourced from available SEC filings. It is not an exhaustive list of all RC drawdown activity.

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