Sponsors' reputations reassure investors for European deals, but rise of cov-lite continues to cause wariness

Handshake
By Ross Lancaster
18 Jun 2014

The reputation of Liberty Global and Discovery Communications played a decisive part in mitigating lenders' concerns about All3Media's credit quality to secure the television production company a £400m-equivalent loan deal, loans bankers said.

The leveraged loan, which has been allocated and is due to be signed imminently, backs Liberty Global and Discovery's acquisition of All3Media. Without those deal sponsors, All3Media would have faced challenges getting a covenant-lite deal, according to loans bankers and investors.

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