Syndicated Loans review - same old firms in top 10

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Global syndicated lending increases 9% from 2013

Global syndicated lending during the first nine months of 2014 reached US$3.4 trillion, a 9% increase compared to the first nine months of 2013 and the best opening period for lending since 2007. Lending activity during the third quarter saw an 18% decrease from the second quarter of this year. Nearly 7,500 transactions closed during the first nine months of 2014, an increase of 4% compared to the first nine months of 2013.

Westfield Group, AbbVie top third quarter loans

Australia's Westfield Group secured a US$23.1 billion financing package to restructure debt topping the list of syndicated loans closed during the third quarter, followed by AbbVie Inc's $US23.1 billion loan to finance the US$55.0 billion purchase of Ireland's Shire PLC, which was announced in June.

US lending accounts for 50% of activity

Americas loans accounted for 56% of global loan volume during the first nine months of 2014, as lending in the region increased by 4% from the same period last year. Within the Americas, loan volume in the United States totaled US$1.7 trillion, up 1% compared to the same period last year and representing 50% of global volume. Europe accounted for 24% of global volumes as lending increased by 37% compared to the first nine months of 2013. Asia Pacific fundraising saw a year-over-year increase of 19%, while Japanese lending fell 24% compared to the first nine months of 2013.

Energy & power, industrials & financials lead lending

Borrowing in the energy & power sector totaled US$571.1 billion during the first nine months of 2014, accounting for 17% of global loan activity, down from 18% of global lending during the first nine months of 2013. Healthcare and consumer staples lead all sectors for syndicated loans with year-over-year gains of 60% and 52%, respectively. Energy & power, industrials and financials together accounted for 43% of syndicated loan volume during the first nine months of 2014 compared to 45% a year ago.

JP Morgan tops bookrunner rankings

JP Morgan maintained the top ranking for global bookrunners, by proceeds, with US$308.8 billion from 1,085 transactions during the first nine months of 2014, a decrease of 0.6 market share points compared to the first nine months of 2013. Bank of America Merrill Lynch followed, with US$265.3 billion from 1,017 transactions, or 9.2% of overall loan proceeds during the first nine months of 2014.

Syndicated lending fees up 12%

According to Thomson Reuters/Freeman Consulting, bookrunning fees from global syndicated loans totaled US$14.1 billion during the first nine months of 2014, an increase of 12% from this time last year. Fees from leveraged lending increased 12% compared to the first nine months of 2013 and accounted for 74% of all lending fees during the first nine months of 2014.

Global Debt Syndicated Loans (DL1) Jan - Sep 2014: Thomson Reuters

Source: Thomson Reuters

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