GLOBAL SYNDICATED LENDING DOWN 19% FROM 2011
Global syndicated lending for full year 2012 reached US$3.2 trillion, representing a 19% decrease from full year 2011. Lending activity during the fourth quarter of 2012 totaled US$869.2 billion, an increase of 19% from the third quarter. Just over 8,300 transactions closed during full year 2012, a decrease of 8% compared to 2011.
GENERAL ELECTRIC CAPITAL, SOFTBANK TOP QUARTERLY LOANS
A US$23.2 billion loan financing package for US-based General Electric Capital Corp and a $19.6 billion loan to finance the acqusition of Sprint Nextel by Japan's Softbank topped the list of syndicated loans during the fourth quarter of 2012.
US BORROWERS ACCOUNT FOR 49% OF ACTIVITY
The Americas accounted for 56% of global loan volume during full year 2012 as lending in the region decreased by 15% from the same period last year. Within the Americas, loan volume for United States borrowers totaled US$1.6 trillion, down 16% compared to the same period last year and representing 49% of global volume. Europe and Asia-Pacific accounted for 21% and 11% of global volumes as lending decreased by 37% and 20%, respectively. Japanese fundraising totaled US$322.1 billion during full year 2012, an increase of 17%.
ENERGY & POWER, INDUSTRIALS & FINANCIALS LEAD LENDING
Borrowing in the energy & power sector totaled US$606.2 billion during full year 2012, accounting for 19% of global loan activity – a decrease of 23% from 2011 levels. Not one sector saw positive year-over-year growth compared to full year 2011, with financials registering the lowest decline of 6% from year ago levels. Energy & power, industrials, financials and materials accounted for 56% of full year 2012 syndicated loan volume.
JP MORGAN TOPS BOOKRUNNER RANKINGS
JP Morgan maintained the top ranking for global bookrunners, by proceeds, with US$327.0 billion from 1,095 transactions during full year 2012. Bank of America Merrill Lynch followed with US$280.2 billion from 1,187 transactions, or 10.1% of overall loan proceeds during full year 2012.
SYNDICATED LENDING FEES FALL 7%
According to Thomson Reuters/Freeman Consulting, fees from global syndicated loans totaled US$13.9 billion during full year 2012, a decrease of 7% from this time last year. Fees from leveraged lending increased 2% compared to full year 2011 and accounted for 78% of all lending fees during full year 2012.