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Update: Coronavirus-related US revolving credit drawdowns surge to $275B

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Loan Downgrades Are the Biggest Concern for the European CLO Market

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Europe’s Leveraged Loan Issuers Draw on Revolving Credits to Preserve Liquidity


Update: Coronavirus-related US revolving credit drawdowns surge to $275B

LCD on May 7 logged $7.2 billion in revolving credit facility drawdowns via 18 debt issuers. Roughly $274.9 billion across 630 borrowers has been recorded 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 43% 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, better-quality BBB issuers account for 42% 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. LCD updates revolving credit drawdown activity daily.

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