Sodexo pays back $1.6bn of US PPs early

By Silas Brown
30 Jun 2020

After discussions with US private placement holders, French food services company Sodexo has said it will repay roughly $1.6bn of debt early. Four market sources said this was the largest corporate early repayment of US PPs of all time. Some fear a growing disconnect between institutional investors and companies over financial covenants, and attempts to amend them.

Sodexo had been trying to negotiate covenant relief with its private placement holders for weeks, as the company struggled to keep within a net debt to Ebitda ratio of less than 3.5x through the coronavirus. A spokesperson for the company said it had looked for a waiver of ...

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