2014 syndicated loans review - JPMorgan takes global crown

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Global syndicated lending increases 9% from 2013

Global syndicated lending reached US$4.7 trillion during full year 2014, a 9% increase compared to full year 2013 and the best annual period for lending since 2007. Lending activity during the fourth quarter saw a 10% increase from the third quarter of this year. Nearly 10,500 transactions closed during full year 2014, an increase of 8% compared to full year 2013.

Aquisition financing drives fourth quarter loan activity

Actavis PLC secured a US$36.4 billion financing package to fund its US$66.4 billion acquisition of Allergan topping the list of syndicated loans closed during full year 2014, followed by Medtronic's $US16.3 billion loan to finance the US$47.9 billion purchase of Ireland's Covidien PLC and Merck KGaA's US$15.6 billion loan to acquire Sigma-Aldrich Corp for US$16.4 billion.

US lending accounts for 50% of activity

Americas loans accounted for 56% of global loan volume during full year 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$2.3 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 30% compared to full year 2013. Asia Pacific fundraising saw a year-over-year increase of 22%, while Japanese lending fell 21% compared to full year 2013.

Energy & Power, Industrials & Financials lead lending

Borrowing in the Energy & Power sector totaled US$873.4 billion during full year 2014, accounting for 19% of global loan activity, up from 18% of global lending during full year 2013. Healthcare and Consumer Staples led all sectors for syndicated loans, with year-over-year gains of 64% and 35%, respectively. Energy & Power, Industrials and Financials together accounted for 47% of syndicated loan volume during full year 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$386.3 billion from 1,266 transactions during full year 2014, a decrease of 1.2 market share points compared to full year 2013. Bank of America Merrill Lynch followed, with US$365.8 billion from 1,388 transactions, or 9.1% of overall loan proceeds during full year 2014.

Syndicated lending fees up 1%

According to Thomson Reuters/Freeman Consulting, bookrunning fees from global syndicated loans totaled US$17.5 billion during full year 2014, an increase of 1% from last year. Fees from leveraged lending decreased 2% compared to full year 2013 and accounted for 74% of all lending fees during full year 2014.

Global Loans Bookrunners 2014 (R1)

Source: Thomson Reuters

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