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 the 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.
Outline
- Current leveraged loan covenants
- Equity cures
- Additional debt
- Acquisitions
- Investments
- 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
Benefits
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 the typical features of covenant-lite loans?
- What are the typical features of high-yield lite covenant packages?
Faculty
Ilona Potiha Laor
Partner
A&O Shearman
Ms. Potiha specializes in representing lenders, financial institutions, and borrowers in connection with a wide range... | Read More
Ms. Potiha specializes in representing lenders, financial institutions, and borrowers in connection with a wide range of financing transactions, including leveraged and investment-grade financings, acquisition financings, spinoffs, cross-border financings, debt restructurings, and other secured and unsecured financings. She is a Client Relationship Partner for a major firm client. Ms. Potiha is also the head of the US Women's Committee, which has won awards for affinity group impact for educational and awareness raising as well as an affinity group impact award for mentoring and training.
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Michael J. Steinberg
Partner
A&O Sherman
Mr. Steinberg focuses his practice on various types of financing transactions, including leveraged acquisition... | Read More
Mr. Steinberg focuses his practice on various types of financing transactions, including leveraged acquisition financing, specialized finance structures (including derivative-linked and asset-backed), as well as unsecured and secured bank and private financings generally, with experience in asset classes such as motion pictures, energy, manufacturing, pharmaceuticals and airlines. He represents investment and debt funds, major corporations, banks, emerging businesses and financial sponsors
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