(Reuters) - Investors have been slow to participate in the loan,
believing the company is taking on too much leverage.
Additionally, investors have noted discomfort with the loan's
'covenant-lite' structure and inclusion of a $300 million
priority revolver that gives bank lenders a superior claim to
the company's assets.
Covenant-lite loans usually lack the traditional financial
covenants that allow lenders to stipulate leverage and minimum
levels of interest coverage. The use of these loans has jumped
significantly this year and has raised concerns that lenders
will be exposed to significant losses if the credit cycle
turns.
Read more at Reuters.com Bonds News
believing the company is taking on too much leverage.
Additionally, investors have noted discomfort with the loan's
'covenant-lite' structure and inclusion of a $300 million
priority revolver that gives bank lenders a superior claim to
the company's assets.
Covenant-lite loans usually lack the traditional financial
covenants that allow lenders to stipulate leverage and minimum
levels of interest coverage. The use of these loans has jumped
significantly this year and has raised concerns that lenders
will be exposed to significant losses if the credit cycle
turns.
Read more at Reuters.com Bonds News
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