This chapter discusses the significance of Most Favored Nation (MFN) protection in bank debt during a private equity buyout, highlighting lenders' desire to benefit from better pricing in case of additional debt. They touch on other factors like debt capacity, value leakage, viability of dividends, and the evolution of MFN protection in debt documents.
On this week’s podcast we replay our Covenants 101 webinar where Peter Washkowitz, head of our Americas Covenants team, discussed redemptions and the primary market as well as call protection, Dutch auctions and open market purchases of term loans, make whole payments, equity clawbacks and redemptions of high-yield bonds, change of control under bank debt and bonds and Covenant analysis for primary investors.
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