In-Depth: Acquisition and Leveraged Finance - Edition 11 - Canada

Leveraged lending is frequently used by Canadian borrowers to fund a number of activities, including acquisitions, capital expenditures, dividend recapitalisations, refinancing of existing debt and ongoing operations. Acquisition activity in Canada in the first half of 2024 has improved as compared to the second half of 2023 due in part to recent interest rate cuts. While we expect the positive momentum to continue in the second half of 2024 and into 2025, significant geo-political issues, including the US presidential election, remain a hurdle to increasing M&A activity in Canada. Regardless, leveraged loans continue to be vital to financing Canadian mergers and acquisitions.

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