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.
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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