US Leveraged-Loan Market Erupts With $61 Billion of Deals

(Bloomberg) -- About $61 billion of US leveraged loans hit the market Monday, the second-most ever according to data compiled by Bloomberg, as junk-rated borrowers continue rushing to lower borrowing costs by repricing existing loans.

There were 33 launches as of 3 p.m. in New York, with all but six of them repricings. The largest was a $7.57 billion offering for medical supplies giant Medline, the bulk of which will be used to reprice a term loan. 

Also launching Monday was UKG Inc.’s $6.27 billion transaction, which would reprice a loan due in 2031 that itself was repriced last October. Fellow software firm Applied Systems Inc.’s $2.4 billion repricing comes six months after the same loan was repriced.

The session’s activity blew past that on Jan. 21, when more than 30 firms launched $48 billion of deals. 



July’s new deals have exceeded $100 billion for the first time since January. That month was the peak of activity following a record 2024 that was dominated by loan repricings thanks to strong investor demand for floating-rate debt like leveraged loans as the Federal Reserve eased monetary policy by less than many expected. 

The leveraged-finance market’s slowdown was worst in April, when worries about US tariff policy crimped capital-raising activity. The rebound that began in May accelerated in June and has quickened further in July.

Also among Monday’s were a $5.62 billion repricing by Sedgwick Claims Management Services Inc. and a $3.6 billion dual-currency refinancing of private-credit debt by Finastra Group Holdings Ltd.