latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/leveraged-loan-news/update-coronavirus-related-us-revolving-credit-drawdowns-total-hits-208b-57930831 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

Update: Coronavirus-related US revolving credit drawdowns total hits $208B

Fed rally & default fears bring bifurcation back to leveraged loans

Industry-Specific Losses Stand Out In Leveraged Loan Market As COVID-19, Oil Fears Globalize

Loan Downgrades Are the Biggest Concern for the European CLO Market

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


Update: Coronavirus-related US revolving credit drawdowns total hits $208B

The tally of U.S. corporate entities drawing upon existing revolving credit lines since March 5 grew by $3 billion yesterday as companies continue efforts to shore up liquidity amid the coronavirus crisis.

The revolving credit drawdown total since March 5 when LCD began tracking this info is now $208 billion, via 350 credit facilities. Historically, these revolving credit lines could go largely undrawn and might be used for working capital, as a backup line of credit or for corporate cash emergencies.

Many of these debt issuers have cited in SEC filings the coronavirus as the reason for tapping these lines, along with an "abundance of caution."

Joining the drawdown list yesterday: Spectrum Brands Corp., Bojangles, Peabody Energy Corp., Chemours, Genesco, Capri Holdings and Timken.

SNL Image

The Consumer Discretionary sector continues to comprise the bulk of the revolving credit drawdowns, with half the $208 billion coming via that sector.

SNL Image

Drilling deeper into that segment, automakers continue to dominate, while Hotels and Cruise lines entities comprise a growing, 18% share.

SNL Image

While the bulk of loan issuers drawing on revolving credit since March 5 are investment grade, lower-rated entities those at single-B, triple-C and unrated make up 23% of the activity (by volume).

SNL Image

The bulk of the revolving credit lines being drawn down, in the leveraged segment of the market most notably, mature in 2023-24.

LCD updates revolving credit drawdown activity daily.

Request a free trial of LCD to see more stories and historical data

Follow LCD on Twitter.

LCD comps is an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.