Lenders Eyeing Opportunistic Transactions; Borrowers Should Take Note

A strong rebound in U.S. leveraged loan volume has lenders pivoting to opportunistic transactions-meaning that now is a great time for borrowers to consider refinancing existing debt or returning capital to shareholders.

Indeed, demand for loans is outstripping supply. With the Federal Reserve poised to cut interest rates in the coming weeks, William Blair's Leveraged Finance team discusses current trendlines that may be pointing to the most borrower-friendly period seen in years, including:

• Competition between the broad syndicated loan market and private credit
• How dividend recaps are gaining steam
• Why precapitalizations might be an untapped strategy for sponsors