Exploring recent modifications in restricted payment baskets, investment capacity, and secured debt capacity in high-yield transactions, leading to decreased value leakage and collateral dilutive debt with a spotlight on sponsor-owned issuances.
The Covenants by Reorg team discusses investor pushback focused on value leakage, secured and priming debt capacity, more investor scrutiny on leakage to unrestricted subsidiaries and dividends from asset sales required and EBITDA pushback centers on capping the synergies/cost savings addback.
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