Tightening Credit Spreads Create Favorable Refinancing Conditions
The credit spread environment remains favorable for refinancing existing credit facilities and originating new corporate credit. Companies with existing credit facilities maturing in the next 12-24 months should consider refinancing in the current credit spread environment, as doing so may generate substantial savings in long-term borrowing costs.
Corporate Credit Spreads Have Widened, but Credit Facility Financing Still Remains Attractive
Corporate credit spreads have started to widen, but they remain well below long-term averages. For CFOs, that means refinancing a credit facility may still offer strategic advantages like locking in terms, reducing interest expense, and improving liquidity. Acting now, before spreads rise further, could be a smart financial move.
Corporate Credit Spreads Hit 20-year Lows - Is it Time to Refinance Your Debt?
With corporate credit spreads at their narrowest level in 20-years, now is the time for CFOs and corporate finance teams to consider refinancing debt, including their corporate credit facility.