Covenant victory for bond buyers as TKE climbs down from ‘worst ever’ package

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By Owen Sanderson
29 Jun 2020

Lead banks on ThyssenKrupp Elevator’s landmark financing announced a sweeping set of amendments to a covenant package initially described as the "worst ever" seen in European high yield, rowing back in almost every sponsor-friendly area. The move is a major victory for bondholders that hoped the coronavirus crisis would reset the balance of power themselves and sponsors.

The financing has been on the road since last Monday, when the loan was announced. But controversy exploded with the publication of draft bond documents on Wednesday, which were among the most sponsor-friendly terms ever seen in the European high yield market.

On Monday morning, following a full ...

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