Investor group calls for better covenant transparency after TKE victory

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By Owen Sanderson
09 Jul 2020

The European Leveraged Finance Association has called for better transparency in high yield covenant packages, arguing that clarity is crucial for pricing risk. The call comes shortly after one of the largest covenant climb-downs in recent market history, when lead banks on ThyssenKrupp Elevator stripped many of the most controversial terms from the €8bn financing.

Leveraged finance bankers often argue that the discussion over documentation is overblown and that covenant quality comes some way down investors’ list of priorities, with few major accounts willing to pass on a good business because it comes with weak documentation.

ELFA, an organization of leveraged finance ...

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