Structuring Covenants in Leveraged Financing and High-Yield Bonds
Additional Debt Covenants, Equity Cures, Builder Baskets, Restricted Subsidiaries, Events of Default
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will examine current market terms and conditions for leveraged loans and high-yield bonds and characteristics common to each type of financing. The panel will discuss various covenants, including additional debt provisions, equity cures, builder baskets, and other key terms and conditions from both the borrower and lender perspectives.
- Current leveraged loan covenants
- Equity cures
- Additional debt
- Repayment of junior debt
- Similarities of leveraged loan terms with high-yield bonds
- Restricted subsidiaries
- Builder baskets
- Events of default
- Opportunities and risks for borrowers and lenders
The panel will review these and other key issues:
- What are the market forces impacting covenants in leveraged loans and high-yield bonds?
- What are typical features of covenant-lite loans?
- What are typical features of high-yield lite covenant packages?
Maura E. O'Sullivan
Shearman & Sterling
Ms. O’Sullivan has extensive experience in representing financial advisors, lenders and borrowers in various... | Read More
Ms. O’Sullivan has extensive experience in representing financial advisors, lenders and borrowers in various financings, with a particular emphasis on acquisition financings, leveraged lending, restructurings and asset-based finance. She is ranked a leading lawyer in banking and finance by Chambers USA, IFLR 1000, and Euromoney Expert Guides.Close
Michael J. Steinberg
Shearman & Sterling
Mr. Steinberg practices structured finance, corporate and bank finance law. He represents financial institutions, major... | Read More
Mr. Steinberg practices structured finance, corporate and bank finance law. He represents financial institutions, major corporations, investment funds and financial sponsors in various types of transactions involving leveraged acquisition financing, and also specialized finance structures, including securitization and asset-backed finance, as well as unsecured and secured bank financings generally, with experience in asset classes such as motion pictures, pharmaceuticals and aircraft.Close