Mid-market LBO dealflow disappointed lenders in the first quarter, according to Thomson Reuters LPC, a sister service of peHUB that tracks the loan market.
With volume of less than $4 billion, activity was down 40% from the fourth quarter of 2010, according to LPC data. As a result, lenders have become more aggressive. Instead of the 3.5x to 4.5x EBITDA multiples that have been common, some new deals have offered 5x or even 6x EBITDA, LPC found.
Follow the link for the video report by LPC’s Fran Beyers.