Glass half empty: pubcos strike covenant waivers for private placements

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By Owen Sanderson
27 Oct 2020

UK hospitality companies have been avid users of the US private placement market in the past, but since the coronavirus pandemic began, their businesses have been up-ended, with pubs subject to curfews, social distancing and closures. Fortunately, US PP investors have largely followed bank lenders in opting for leniency, waiving covenants or switching to monitoring minimum levels of liquidity. One firm even managed to raise new debt this summer.

The US PP market has proved a supportive one for issuers from the UK’s pub, beverage and hospitality sectors in the past, giving a cost-effective route to market for firms that might not have the scale to establish a Eurobond curve, and which appreciate the flexible terms on ...

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