Continental: how to structure German law high-yield

Author: | Published: 23 Jul 2010

The first secured high-yield bond to be sold under the new German Bond Act has some innovative features, including the first trustee-like service. But it still had to be structured around gaps in the legislation.

Continental’s €750 million senior secured notes were the first to be sold since changes to German bond legislation meant that it became possible to amend bond terms post-issuance.

“Traditionally it’s been almost impossible to issue high-yield under German law because the old law did not provide sufficient flexibility for amending the covenants post-closing with majority bondholder consent.,” said Marc Plepelits, a partner at Shearman & Sterling who advised the initial purchasers on the transaction. “They were always done under New York or UK law so the...


 


Web seminars

Liability Management
Mar 23 2015 3:00 pm

close Register today to read IFLR's global coverage

Get unlimited access to IFLR.com for 7 days*, including the latest regulatory developments in the global financial sector, updated daily.

  • Deal Analysis
  • Expert Opinion
  • Best Practice

register

*all IFLR's global coverage published in the last 3 months.

Read IFLR's global coverage whenever and wherever you want for 7 days with IFLR mobile app for iPad and iPhone

"The format of the Review has changed over the years; the high quality of its substantive content has not."
Lee C Buchheit, Cleary Gottlieb

register