Borrowers opted for $25.4 billion in amend-and-extend deals in May, avoiding higher refinancing costs amid elevated yields.
Leveraged loan borrowers pushed amend-and-extend volume to $25.4 billion in May, the highest monthly total since June 2024. The surge included 19 transactions, up from 18 in April, which totaled $13.6 billion. Year-to-date volume reached nearly $79 billion, surpassing the $68 billion recorded in the first five months of 2025.
Borrowers favored amendments over refinancings due to lower yields on syndicated term loans, currently at 6.7% for 2026, down from 7.4% in 2025 and 8.6% in 2024. Institutional amend-and-extend issuance dominated May at $15.7 billion, compared to $9.7 billion in pro rata volume. The Oil & Gas sector led sector activity with 16% of year-to-date volume.