MBPS: first Middle East high yield explained

Author: Danielle Myles | Published: 9 Jan 2011

MBPS: first Middle East high yield explained

  The first high yield deal in the Middle East has been structured with few carve outs and no intercreditor agreement.

Although debt has been sold in the Middle East with high yield characteristics in the past, the $320 million MBPS Finance deal is thought to be the first true high yield sale.

And banks and their lawyers working on the deal have tried to avoid a "loose start" to covenants in the region and set a more conservative precedent for issuers.

MBPS Finance Company and MBPS are wholly owned subsidiaries of Mohamed Al Barwani Holding Company (MB Holding), a diversified natural resources company with operations in the Middle East, Europe, Asia and Australasia.

The primary credit, MBPS, was improved by...