Blog Post
Octus on Credit: Expectations for a busy Q1’26 spurs appetite for LevFin, private credit dealmaking
Michael Haley Editor, Leveraged Finance - Americas
Leveraged finance dealmakers are tying up loose ends on 2025 transactions as they gear up for a busy Q1.
Tariff threats and AI disruption spooked investors away from marquee high-yield bond and leveraged loan deals this year, but market participants expect little impact on 2026 volume. The pipeline for M&A and LBO financing looks robust, with several sizable deals set to launch early in the new year: debt backing Silver Lake’s take-private of EA, CD&R’s acquisition of Sealed Air, and Investindustrial’s purchase of Treehouse Foods.
Not every deal has found a warm reception in syndicated markets, though. A roughly $2 billion loan to refinance Carlyle-backed ManTech was pulled recently, and a high-yield bond for Cable One remains in limbo after failing to gain traction months ago. ManTech is now expected to tap private credit instead—a lifeline for deals struggling in the BSL market.
Private credit is drawing other borrowers too. Gaming operator Bally’s lined up more than $1 billion from Ares to finance its New York City casino build. Apollo is expected to lead a $750 million loan for Stone Point-backed Allied Benefit Systems to fund a dividend recap, and Wedgewood Pharmacy secured a $350 million private loan from a Carlyle-led lender group to refinance debt.
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