New covenant gimmicks land in Europe with Inmarsat buyout

By Karoliina Liimatainen
19 Sep 2019

The private equity consortium behind the $3.4bn leveraged buyout of UK satellite company Inmarsat is testing the limits of investor patience with exceptionally aggressive terms for $1.125bn of senior notes, potentially leading the high yield market down a slippery slope.

This is the first European deal (though the dollar bonds are US-marketed) that strips away the voting rights from creditors who are “net short” on the bonds, betting on the company’s default. Inmarsat is also debuting a time limit under which the bondholders will have to flag ...

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