Covenant-lite loans wither in LBO market 'correction'

The European leveraged loan market bit back this week against the private equity funds that have raised so many aggressive financings — and especially against the covenant-lite structure that has been widely criticised by pundits.

  • 06 Jul 2007

As loan prices wilted in the secondary market, especially on covenant-lite deals, ABN Amro and Citigroup were forced to add covenants to a struggling Eu1.075bn loan for Maxeda, the Dutch home improvement retailer.

Leveraged loan bankers talked of a sharp turn in the market — even an end ...

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1 Bank of America Merrill Lynch (BAML) 6,665 23 13.02
2 Citi 5,781 17 11.29
3 BNP Paribas 3,530 14 6.89
4 Barclays 2,853 9 5.57
5 Credit Suisse 2,783 8 5.44

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5 Credit Suisse 41,885.89 127 5.55%