John Weeden from Cadence Advisory comments:
Whilst the number of deals completed by alternative lenders in 2016 increased relatively modestly, we are seeing a failure of the conventional ABL lenders to effectively compete for good quality assets. The alternative debt market is able to devise more flexible solutions where lenders can lend up and down the credit structure, and provide follow-on and acquisition financing without the need to seek approval from a syndicate of banks. Will this dynamic push comprehensive ABL structures down the quality scale and into the turnaround space?