‘Corona claw’ lets companies pay back bondholders early with government cash

© 2025 GlobalCapital, Derivia Intelligence Limited, company number 15235970, 4 Bouverie Street, London, EC4Y 8AX. Part of the Delinian group. All rights reserved.

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement | Event Participant Terms & Conditions

‘Corona claw’ lets companies pay back bondholders early with government cash

AMC Entertainment adobe stock 575x375
Feb 24, 2020 Sunnyvale / CA / USA - New AMC Movie theater complex close to completion before the COVID-19 outbreak; | SUNDRY PHOTOGRAPHY/Andrei - stock.adobe.com

Companies in the US high yield market have started adding a "corona claw" provision to bond documents, allowing a big chunk of new bond issues to be paid back early if the company gets cash from the federal government. But it’s not clear yet where any public money will fit in the capital structure of leveraged corporates — and whether bondholders could end up primed by the government.

Unlock this article.

The content you are trying to view is exclusive to our subscribers.

To unlock this article:

Request a Free Trial or Login
Gift this article