NEW YORK, October, 2017 – Ken Kencel, CEO of Churchill says, “We see credit facilities as small as $250 million in size that are being done cov-lite. Three years ago that would not have been the case. As a result, the upper middle market has become more syndicated, more distributed, and more underwritten to sell. Lenders in this space have shifted from the ‘storage business’ into the ‘moving business’ —often at the expense of covenants and other structural protections, with lower pricing and higher leverage. This is something that has happened increasingly in the last several months.”

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NEW YORK, October, 2017 – EBITDA adjustments have expanded beyond conventional add-backs like the cost of headcount reductions. For example, one of the more aggressive add-back that firms now request includes taking into account the projected revenue generated from a new product or customer over the next 12 months, says Randy Schwimmer, senior managing director and head of origination and capital markets at Churchill Asset Management.

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