European sponsor-high yield standardizes

Author: | Published: 15 Feb 2011

Swissport’s recent high-yield offering suggests the European market’s record year has not brought a throwback to the aggressive, covenant-lite provisions of 2006.

The CHF750 million-equivalent issue backs Swissport’s leveraged buyout (LBO) by PAI Partners, and is one of Europe’s first M&A-driven deals of the year. Its signals a standardising market with covenant packages remaining balanced despite soaring investor demand.

"The Swissport deal is typical of what we have seen in the market recently, and is more or less similar to the type of covenant packages that...