Americas Leveraged Finance Weekly: Primary Activity Recovers After Recent Muted Activity From ‘Wait-and-See’ Mode; Oracle, Qualtrics Prep Multi-Billion 2026 Launches

Although refinancings remained the primary driver of issuance this week, a number of borrowers are lining up sizable transactions slated for early 2026. Octus tracked $18.3 billion of new loans that were either announced or priced covering 21 deals. High-yield new issuance totaled $9.8 billion across 10 deals. High-yield outflows declined this week to $20 million from $76 million, while inflows accelerated for loans to $57 million from $46 million, according to a report by Bank of America.

Market participants said this week that primary’s recent lack of issuance can likely be attributed to the government shutdown and its resulting lack of data, which has put primary in “wait-and-see” mode. Leveraged loan activity appeared to pick up after progress was made to end the shutdown earlier this week.

In addition, companies that do not have an immediate need to refinance are waiting for the Federal Reserve’s rate decision upcoming in December, noted one leveraged finance investor this week, amid other factors contributing to a quiet primary.

Still, several companies are preparing sizable deals that will launch in the first quarter of 2026.

Oracle is preparing to launch a series of multibillion-dollar debt offerings to finance the development of multiple AI-related data centers, Octus reported this week. Of the debt offerings is a $38 billion deal, which will consist of $23 billion and $15 billion term loans led by JPMorgan.

Another deal expected to launch early next year is a roughly $5 billion leveraged loan to finance software service Qualtrics’ acquisition of Press Ganey Forsta, Octus reported this week. The deal has received mixed feedback from market participants as AI-related fears continue to disrupt software industry deals in the primary market.

“While the overall economy is in decent shape and many financial benchmarks are near their highs, it can be easy to overlook pockets of fragility,” said John Lloyd, global head of multisector credit at Janus Henderson, in a note this week on bifurcation in the loan market.

Lloyd noted that significant dispersion underlies the headline figures in the loan market, as reflected in the pricing of the distressed segment, which has been weakening for several months.

Elsewhere, a $500 million term loan for Liberty Tire Recycling, which will be used to finance its acquisition by I Squared Capital, is over book size despite investors’ initial concerns about the credit, Octus reported. Commitments for the seven-year loan are due Tuesday, Nov. 18, with price talk coming at SOFR+375-400 bps and 99.5 OID.

In addition, executive recruitment firm Heidrick & Struggles is marketing a $550 million seven-year term loan to finance its $1.3 billion take-private by Advent and Corvex, Octus reported this week.

Meanwhile, Mauser Packaging’s $1 billion loan to amend and extend existing debt is due today, alongside $2.696 billion of senior secured first lien notes and $1.344 billion of senior secured second lien notes, Octus reported.

Several deals with commitment deadlines of Nov. 13 are still in the market, including Peterson Farms’ $775 million seven-year term loan B to fund its acquisition of Country Pure Foods, Octus previously reported.

For more information on potential deal activity, see Octus’ Deal Origination Pipeline.

In the tables and summaries below, generated with the assistance of AI, we recorded $28.1 billion of issuances closing or announced across deals in the latest week.

Issuance volume year to date for leveraged loans and high-yield bonds is below:

Issuance by Use of Proceeds, Ex-Repricings

The following charts show issuance by use of proceeds for both loans and bonds but excluding repricings. Debt earmarked for leveraged buyouts and M&A has increased as a share of total loan issuance in September compared with the prior two months.

Pricing by Rating

The following charts detail average spread and coupon for loans and bonds, respectively, by rating band. Because of the limited activity of CCC rated issuance, only the months with issuance are shown.

Pricing by rating category is shown below:

Breakdown by Sector

Industrials and materials led the way for new issue announcements across loans and bonds.

In the secondary market, bonds backing Teads Holdings, fka Outbrain, further tumbled downward to the low 40s this week, after weak third-quarter earnings and a reduction in full-year 2025 adjusted EBITDA guidance, Octus reported this week.

The digital advertising company’s 10% senior secured notes due 2030 are down about 20 points from where they were trading a week ago, traders said.

Top daily loan decliners and risers can be found in Octus’ Credit Cloud. A search for the largest bond decliners is HERE.

Average high-yield bond spreads sit at 309 bps, consistent with last week, according to ICE BofA data.

Moody’s Ratings and S&P Global Ratings downgraded the following companies to CCC this week:

• Full House Resorts
• Kosmos Energy
• Packers Holdings
• Teads Holding Co.

Octus Covenants’ analyses of the documentation for new loan transactions can be found HERE.

Octus’ Private Company Analysis recent reports can be found HERE.

Octus Fundamentals Coverage Weekly Update highlights new-issuer coverage in Fundamentals for the syndicated credit universe, alongside transcripts for syndication calls.