Global syndicated lending falls 8% from 2014.
Global syndicated lending reached US$3.2 trillion during the first nine months of 2015, an 8% decrease compared to the first nine months of 2014 and the slowest nine-month period for lending since 2013. Lending activity during the third quarter quarter saw a 19% decrease from the second quarter this year. Just over 7,500 transactions closed during the first nine months, a decrease of 10% compared to a year ago.
Aquisition financing continues during third quarter
Charter Communications secured a US$30.5 billion financing package to fund its US$78.4 billion acquisition of Time Warner Cable, topping the list of syndicated loans closed during third quarter of 2015. Other notable acquisition-related loans included Anthem Insurance Co's US$30 billion facility to fund its acquisition of US$49.4 billion of Cigna Corp and a $13.9 billion loan for GE Antares Capital.
US lending accounts for 53% of activity
Americas loans accounted for 59% of global loan volume during the first nine months of 2015, as lending in the region was flat compared to same period last year. Within the Americas, loan volume in the United States totaled US$1.7 trillion, up 0.8% compared to the same period last year and representing 53% of global volume. Europe accounted for 21% of global volumes as lending decreased by 22% compared to the first nine months of 2014. Asia Pacific fundraising saw a year-over-year decrease of 21%, while Japanese lending registered a downtick of 3% compared to 2014.
Energy & power, financials & industrials lead lending
Borrowing in the Energy & Power sector totaled US$594.9 billion during the first nine months of 2015, accounting for 19% of global loan activity, down 3% compared to lending in the sector during 2014. Healthcare and Retail lending saw the largest year-over-year percentage increases, up 6% and 5%, respectively. Energy & Power, Financials and Industrials together accounted for 46% of syndicated loan volume during the first nine months of 2015, compared to 44% a year ago.
Bank of America Merrill Lynch tops bookrunner rankings
Bank of America Merrill Lynch secured the top ranking for global bookrunners, by proceeds, with US$231.1 billion from 874 transactions during the first nine months of 2015, a decrease of 0.7 market share points compared to the first nine months of 2014. JP Morgan fell to second place, with US$208.4 billion or 7.4% of overall loan proceeds during the first nine months of 2015, a loss of 2.1 market share points from a year ago.
Syndicated lending fees down 17%
According to Thomson Reuters/Freeman Consulting, bookrunning fees from global syndicated loans totaled US$11.5 billion during the first nine months of 2015, a decrease of 17% from last year. Fees from leveraged lending decreased 26% compared to a year ago and accounted for 69% of all lending fees during the first nine months of 2015.