The Lending and Secured Finance Review - Third Edition
|Lawyer||Jean Anderson, Caroline Descours, David Nadler, Carrie Smit, David Wiseman|
|Area||Banking and Finance Law|
Chapter originally published in The Lending and Secured Finance Review - Third Edition
Excerpt from "The Lending and Secured Finance Review - Third Edition - Chapter 4: Canada":
The corporate lending market in Canada was very active in 2016, particularly in the merger and acquisitions area, and, overall, activity levels and the average deal size were higher than in 2015. Syndicated loans are frequently used by Canadian borrowers to fund a number of activities, including acquisitions, capital expenditures, dividend recapitalisations, refinancing of existing debt and ongoing operations. Continuing low interest rates, substantial liquidity in the North American market and reasonable credit terms have contributed to the attractiveness of leveraged loans for Canadian borrowers in 2016. However, the prospect of increased interest rates, uncertainty as to the direction of oil and other commodity prices, together with a tightening of credit terms, may negatively affect the level of Canadian lending activity in 2017.