According to a recent Forbes article, unitranche deals are still a popular option for many businesses despite a stronger economy and easier access to capital.
Unitranche loans became common during the peak of the credit crisis. Even though they are more expensive for sponsors, they still became popular in 2009 and 2010, when other options were very limited.
Even now that the economy has shown improvement and cash is more readily available, unitranche deals are still proliferating. This is due in large part to new regulatory guidelines for banks. The shadow of regulators is giving unitranche debt a new life, even in changing economic conditions.
To read the full article in Forbes, please click here.