Exploring the trend of converting asset sale proceeds into RP capacity in covenant transactions, examining nuances of different structures, creditor pushback on aggressive provisions, and the importance of monitoring covenant developments.
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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