Covenant-lite loans wither in LBO market 'correction'

The European leveraged loan market bit back this week against the private equity funds that have raised so many aggressive financings — and especially against the covenant-lite structure that has been widely criticised by pundits.

  • 06 Jul 2007

As loan prices wilted in the secondary market, especially on covenant-lite deals, ABN Amro and Citigroup were forced to add covenants to a struggling Eu1.075bn loan for Maxeda, the Dutch home improvement retailer.

Leveraged loan bankers talked of a sharp turn in the market — even an end ...

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1 Bank of America Merrill Lynch (BAML) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

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5 Bank of America Merrill Lynch 1,226.20 5 6.94%