Covs offer leveraged issuers refuge from Covid-19

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By Owen Sanderson
09 Mar 2020

Some leveraged issuers could avoid covenant breaches thanks to the coronavirus outbreak, according to researchers, by using the "extraordinary, unusual or non-recurring" carve-outs to add back some costs to Ebitda figures.

“We think issuers and borrowers can make a reasonable argument that charges related to a pandemic could be characterized as “extraordinary, unusual, or non-recurring” and that coronavirus-related chargescan be added back to Ebitda,” research company Covenant Review said in a note published last Friday.

However, as the ...

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