Bankers bemoan return to 'short-sighted' use of euro covenant-lite

Euro debt 230x150
By Olivier Holmey
03 Apr 2014

The trend to covenant-lite loans in Europe is gathering pace, causing some consternation among the continent's conservative lenders, with food maker Diana Ingredients this week lining up to follow French compatriot Ceva Santé Animale which last week closed the first all-euro covenant-lite deal in years.

“The market increasingly feels like 2005 and 2006: not right at the edge, but seriously unhealthy,” said one senior loans banker. “The crisis was just seven years ago and we’re in the same place all over again.”

While last week Ceva closed a €818m cov-lite loan package, French private ...

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