Risky Companies Rush to Buy Time on Debt Before End of Year

Risky corporate borrowers in the US and Europe increasingly are using the relative calm in credit markets to buy time on looming debt maturities.

Nine companies this quarter have sought to amend the terms of their loans in the US, according to an analysis by PitchBook LCD, compared to just one in the third quarter and seven in the first three quarters of 2022 combined. The deals come at a time when outstanding loans maturing in the next three years stand at a decade high, according to a recent report from JPMorgan Chase & Co.

Source: JPMorgan Chase & Co.

So-called amend-and-extend transactions enable ...