Exploring the impact of covenant pushback items in high yield bonds, including discussions on dividend capacity, asset transfers, J-crew blockers, and changes in European bond dynamics. Insights provided on the proliferation of J-crew blockers in various companies and the implications of private equity involvement in bond 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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