Exploration of recent trends in high yield bond covenants including issuer call requirements, conversion of restricted payments, and asset sales for dividend payments, reflecting the evolving landscape and absence of a standardized market approach.
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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