PennantPark Sees Lower Leverage, More Covenants in Private Debt (April 6, 2020)
By Kelsey Butler – Bloomberg
Bloomberg’s Kelsey Butler talked to Managing Partner Art Penn for an article covering PennantPark’s outlook on middle market lending, highlighting that the firm expects “lower leverage levels and juicier yields in private credit once the market gets back up and running.” Though the private credit sector is facing a market disruption due to the coronavirus outbreak, Art provided valuable perspective from his experience managing PennantPark through the Global Financial Crisis.
“History doesn’t necessarily repeat itself, but it does rhyme, and coming out of this you’ll have new deals with lower average debt to Ebitda, higher yields, higher average equity contributions, and better covenants,” he said.
The following story appeared on the Bloomberg Terminal.