Maintenance covenants won’t last in Europe

Author: Elizabeth Fournier - IFLR | Published: 16 Feb 2010

Maintenance covenants have crept into several European high yield bond deals in recent months, but the trend won’t continue for long.

Last week, IFLR reported on Chandra Asri’s $230 million bond, which added maintenance-style covenants and amortisation to the standard covenant documents.

As in Asia, European deals use incurrence tests as...

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