Private equity breaks one more levfin taboo: change of control puts are binned
Private equity funds have found another way to wring more favourable terms out of leveraged loan and high yield bond investors: selling them debt without the usual rights to repayment if the borrowing company gets taken over, writes Stefanie Linhardt.
Change of control put options are standard on both bonds and loans in the leveraged finance market, but in the present bullish climate, issuers feel able to dispense with them.
This portability feature suits private equity funds, as they are still finding it hard to sell companies at
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