Americas Core Credit: Voting Cap Restrictions (Dec. 20, 2020)

This podcast discusses voting cap restrictions and their impact on a company or credit's financial covenants. They explore the unique voting cap provision in Ancestry's high yield issuance and how it limits the percentage of notes an individual can vote on. They also discuss how issuers have the power to expand or raise the cap without further consent. The podcast delves into the technique of voting cap restrictions used by issuers to have power over decision-making through voting, and the potential influence of ownership percentages and net short holders on voting rights.