1. REUTERS / Ammar Awad
REUTERS / Clodagh Kilcoyne
REUTERS / Dominic Ebenbichler
REUTERS / Danish Ismail
REUTERS / Dominic Ebenbichler
REUTERS / Arnd Wiegmann
REUTERS / Danish Ismail
Runners and riders participate in the Christmas Ballyheigue beach horse races in the County Kerry village of Ballyheigue, Ireland..
REUTERS / Kristina Barker
U.S. INVESTMENT GRADE MONTHLY January Thomson Reuters LPC Keeping the high grade loan market grounded
David Puchowski
Senior Market Analyst

2. Investment grade scoreboard
U.S. INVESTMENT GRADE MONTHLY - January 2018
Investment grade scoreboard
*All dollar figures are in billions.
 Issuance Type
January 2018
January 2017
% difference
Overall IG
(refi plus new money)
 $33.96
$25.57
+33%
Refinancing
 $31.79
$16.49
+93%
New Money
 $4.91
$9.08
-46%
M&A
 $2.175
$8.50
-74%
Bridge loan
 $.925
$0.00 -
Source: thomson reuters lpc

3. U.S. investment grade loan issuance
U.S. INVESTMENT GRADE MONTHLY - January 2018
U.S. investment grade loan issuance
Refinancing activity helped drive January investment grade loan issuance to $34bn, 33% higher than January 2017’s total
Source: thomson reuters lpc

4. U.S. investment grade: loan & bond issuance
U.S. INVESTMENT GRADE MONTHLY - January 2018
U.S. investment grade: loan & bond issuance
There was $108bn of corporate bond issuance in January, 37% lower than January 2017’s $172bn
Source: thomson reuters lpc; Thomson Reuters

5. Investment grade new money & M&A issuance
U.S. INVESTMENT GRADE MONTHLY - January 2018
Investment grade new money & M&A issuance
New money issuance totaled just $4.9bn in January
While a handful of acquisition financings are working their way through market, M&A issuance totaled only $2.2bn in January
Source: thomson reuters lpc

6. Investment grade bridge loan issuance
U.S. INVESTMENT GRADE MONTHLY - January 2018
Investment grade bridge loan issuance
With M&A issuance muted in January, term loan issuance totaled only $5.8bn
One bridge loan for $925m (Hubbell Inc) was credited in January
Announced bridge loans for Dr. Pepper/Keurig, Wyndham Worldwide, Energizer Holdings, Assurant remain in market
Source: thomson reuters lpc

7. Investment grade refi issuance stats
U.S. INVESTMENT GRADE MONTHLY - January 2018
Investment grade refi issuance stats
January 2018 refi issuance of $31.8bn was the second highest January in the last eight years
Source: thomson reuters lpc

8. Investment grade issuance across industries
U.S. INVESTMENT GRADE MONTHLY - January 2018
Investment grade issuance across industries
Strong refinancing issuance helped drive oil and gas and utilities sector issuance totals to the top two spots in January
Source: thomson reuters lpc

9. U.S. INVESTMENT GRADE MONTHLY - January 2018
Average weekly drawn & undrawn spreads on 364-day and multi-year revolvers
364-day drawn
364-day undrawn
Multi-year drawn
Multi-year undrawn
Methodology: The grids consist of US based borrowers who have investment grade senior debt ratings issued through Moody's and S&P. Deals must be at least $100 million in size and pricing must be less than LIBOR+175 basis points. For underlying deals please see the I-Grade Pricing Grid page on LoanConnector
Source: thomson reuters lpc

10. Average quarterly investment grade drawn and undrawn spreads
U.S. INVESTMENT GRADE MONTHLY - January 2018
Average quarterly investment grade drawn and undrawn spreads
Source: thomson reuters lpc

11. Average investment grade financial covenant levels
U.S. INVESTMENT GRADE MONTHLY - January 2018
Average investment grade financial covenant levels
Debt to EBITDA ratios in the investment grade market averaged 4x in 2017, the loosest year on record
Ratio of debt to capitalization remained steady, averaging 0.61x last year
Note: Data comprises a sample of the investment grade loan market. Underlying deals can be found within the Investment Grade covenant charts linked on the Historical Data page on LoanConnector
Source: thomson reuters lpc

12. Market Based Pricing Snapshot
U.S. INVESTMENT GRADE MONTHLY - January 2018
Market Based Pricing Snapshot
Borrower name
Rating
Facility Type
Facility Size ($b)
Drawn spread is tied to:
Floor
Cap
Deal Close
Undrawn
Stanley Black & Decker Inc
A/Baa1
364-day
1.25
1-yr CDS 50
112.5
12/20/2017
7.0
Archer Daniels Midland Co
A/A2
5yr RC
2.00
5-yr CDS 25
100
12/8/2017
3yr RC
1.50
3-yr CDS
4.0
Toyota Motor Credit Corp
AA-/Aa3
5.00 75
150
11/13/2017
8.0
125
6.0
3.0
Procter & Gamble Co
4.80 10
11/9/2017
2.0
3.20
Deere & Co
0.75
10/24/2017
Cargill Inc
10/20/2017
Johnson & Johnson Inc
AAA/Aaa
10.00 70
9/14/2017
Caterpillar Inc
A/A3
3.15
9/7/2017
4.62
2.73
Automatic Data Processing
AA/Aa3
2.25
40% of CDX 30 NA
6/14/2017
3.50 20
1.8
PepsiCo Inc
A+/A1
3.75
6/5/2017
Wal-Mart Stores Inc
AA/Aa2
5/31/2017
SBLC
1.75
7.50
Merck & Co Inc AA
6.00
5/23/2017
Honeywell International Inc
4.00
4/28/2017
Honeywell Int'l
1.5
Bristol Myers Squibb
A+/A2
87.5
3/30/2017
United Parcel Service
3/24/2017
5.0
Walt Disney Co
2.5
3/10/2017
2/17/2017
4yr RC
2.50
4-yr CDS
Stanley Black & Decker*
1/18/2017
*No MBP deals tracked so far in 2018
Source: thomson reuters lpc
*Denotes clubbed deal

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