Grohe ups loan, but cov-lite won’t last, says Fitch
German bathroom and kitchen fittings company Grohe increased the size of its dual-currency covenant-lite term loan by €75m to €375m on the back of strong demand from investors this week. However, rating agency Fitch has predicted the mini-comeback of the borrower-friendly terms will not become a long-term phenomenon.
The increase in Grohes loan will be taken mainly by euro investors, as the borrower confirmed the euro tranche will total 175m, having originally been set at a minimum of 100m. The dollar piece will be $257m, after Grohe initially indicated a minimum $250m tranche size.
But the yield
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