It is a bull market for DIP lenders.
The first quarter of 2009 is not yet over, but the dollar total of debtor-in-possession financing has already surpassed the total raised for the first half of 2008.
Bankruptcy activity this year is set to outpace 2008. There were 3,799 U.S. and non-U.S. bankruptcy filings last year, up almost 23% from 2007 and 72% higher than in 2006 (see preview of
bankruptcy league tables for more).
Of course, the $8.5 billion
Lyondell DIP in January 2009 accounts for much of the 1st quarter activity. That financing was the second largest on record, trailing only the $10 billion DIP Calpine Corp. received in January 2007. See chart below from The Deal Pipeline for details on the past five quarters of DIP activity. -
Tom Groppe
DIP lending totals: 2008 - 2009 |
1st quarter 2008
|
68 DIPs |
$3 billion |
| 2nd quarter 2008 |
83 DIPs |
$7.89 billion |
| 3rd quarter 2008 |
89 DIPs |
$4.295 billion |
| 4th quarter 2008 |
98 DIPs |
$3 billion |
| Year-to-date, March 26, 2009 |
85 DIPs |
$13.4 billion |
| source: The Deal Pipeline |
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