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.
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.
Looking at broad industry sectors, Consumer Discretionary accounts for 40% of total RC drawdowns.
Within Consumer Discretionary, much of the volume is from borrowers in the Automobile Manufacturers segment.
Of the data so far, lesser-quality single-B issuers, or lower/unrated, account for 25% of the overall volume, by corporate credit rating.
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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