Debtwire

Activity in the North American leveraged loan market remained steady during 1H26, with overall issuance broadly in line with the same period last year, according to Debtwire data. Refinancing transactions continued to dominate the market, accounting for USD 766.1bn of issuance, up slightly from USD 757.7bn in 1H25. Leveraged buyout and general corporate purpose financings also recorded year-on-year growth, reaching USD 70.9bn and USD 66.9bn, respectively. Simpson Thacher & Bartlett retained the top position in Debtwire's 1H26 North America leveraged loans borrower legal counsel rankings, advising on USD 62.7bn across 44 deals. Paul Hastings rose three places to lead the bank legal counsel rankings, advising on USD 136.4bn across 137 transactions and capturing a 23.25% market share, up from 11.44% in 1H25. Explore the full 1H26 North America Leveraged Loans Legal Advisors' Rankings here: https://lnkd.in/eDw73xA6

Silver Point Capital is buying up the term loan of one of the largest providers of childcare in the US, private equity-backed Learning Care Group, even as big-name funds head for the exits. Kunyi Yang and I reported Debtwire that Silver Point is bullish on Learning Care despite headwinds facing the childcare industry. The global credit investor has made contrarian investments in the past like supporting men’s clothing group Tailored Brands during its bankruptcy in the midst of the pandemic.

City Brewing Company’s debt has plunged into deeply distressed territory just a year after an out-of-court restructuring, as a weakening beer market pressures the contract brewer and its customers. Declines in restaurant beer sales due to lower alcohol consumption among older drinkers, a trend compounded by growing GLP-1 use, while younger consumers increasingly favor hard seltzers and other ready-to-drink alcoholic beverages over traditional beer. Check out Debtwire for more:

"It feels bubble-like."   On the latest episode of #CreditExchange, Bryan Whalen, CIO of Fixed Income at TCW, joins host Lisa Lee to discuss why AI remains one of the most important themes shaping markets, credit, and the broader economy.   In this clip, Whalen explains why enthusiasm across the AI ecosystem has reached extreme levels, how companies have become increasingly interconnected, and why some of today's market dynamics echo previous technology bubbles.   🎧 Listen on Apple: https://lnkd.in/eyBN4jVr 🎧 Listen on Spotify: https://lnkd.in/e6xgr6xr ▶️ Watch on YouTube: https://lnkd.in/eWRDtSzw

Dave & Buster's turnaround remains uncertain as weaker operating performance continues to pressure its credit profile. The company reported a 1.5% year-on-year decline in revenue and a 9.5% drop in adjusted EBITDA in 1Q26, driven by lower comparable-store sales and reduced walk-in traffic. Against this backdrop, S&P Global recently revised its outlook on the company to negative, while its debt continues to trade wide to both the broader high-yield market and similarly rated peers. Management is looking to international expansion, cost reductions and customer recovery efforts to support a turnaround. More here: https://lnkd.in/eVYKVu5h

Specialty materials maker SP Unifrax Holdings (Alkegen) entered bankruptcy on 26 July seeking a USD 630m DIP facility that is designed to fund the company’s Chapter 11 cases and set the terms for its emergence. The size is notable, as only three other DIP financing facilities this year have exceeded USD 500m (those sought by Saks Global, Pretium Packaging, and Multi-Color Corporation). Although the DIP facility carries a USD 630m headline size, only about USD 118.6m is expected to provide new liquidity, before accrued interest, fees and other financing costs, and only about USD 87.9m after disclosed fees are applied. The facility positions the first-lien lender group to finance Alkegen into and out of bankruptcy and emerge with substantially all of the reorganized equity and the entirety of the exit financing. View our DIP Financing Profile here: https://lnkd.in/eQmB8pmS

Ten years after PROMESA, what lessons can be drawn from Puerto Rico's fiscal crisis and recovery? On the latest episode of #Debtwired, David Skeel joins host Paul Greaves to discuss the legacy of the restructuring, the path beyond oversight, and the opportunities and risks that will shape Puerto Rico's next decade. 🎧 Listen on Apple: https://lnkd.in/eid_jTgK 🎧 Listen on Spotify: https://lnkd.in/ekDvTMKe

The data center boom is opening an avenue for energy prepay bonds, with muni investors showing appetite for more hyperscaler deals. Evidence of that potential emerged in June, when Alphabet entered the muni market with a roughly USD 1bn clean energy prepay, the first such offering involving a hyperscaler. The financing paired a long-term electricity prepayment for Pioneer Community Energy with a senior unsecured loan to Google parent Alphabet, according to the preliminary official statement (POS). The bonds attracted more than USD 10bn in orders, about ten times the offering’s size, and subsequently traded higher in the secondary market. More here: https://lnkd.in/eWqdaNss

Law firms and credit shops have continued to build out their benches this summer, with a string of senior hires in recent weeks. Kirkland & Ellis, Simpson Thacher and DLA Piper all added to their restructuring teams, while King Street Capital Management recruited Ducera Partners’ Sean Monaghan to its capital markets group. In one of the most significant taps of the year so far, M3 Partners last week appointed former US Bankruptcy Court Judge Robert D. Drain as senior advisor and head of fiduciary services. During his career, Drain presided over several landmark Chapter 11 cases, including Purdue Pharma, Sears, Hostess Brands, Delphi and A&P. A string of hires took place in New York in recent weeks. More here: https://lnkd.in/eYX3ZdzD

EnergySolutions and FDH Aero tested the market last month, launching buyout deals just as some of the first software-related refinancings test investors’ willingness to back names with potential AI risk. “If you’re going to bring a new issuance deal, we’re mid-summer already; the window to bring new issue will close over the next few weeks. There is a timing element. If you do have buyout related financing, you’re coming to market this week, next week or maybe the week after,” said a leveraged finance banker. EnergySolutions tightly priced a USD 1.1bn term loan B at SOFR+ 275bps due 2033 with a 99.75 OID. The financing will help fund Energy Capital Partners’ acquisition of the nuclear waste processor from TriArtisan Capital Advisors. More here: https://lnkd.in/ebaZUfqS