South African issuers have returned to the international high
yield market, and they are obtaining the covenants they got in
the markets peak.
Edcons dual tranche dollar/euro offering in
February was the first from the country in over two years.
Investors were willing to accept the same terms offered by the
clothing retailer in their debut 2007 issue.
It went out with the same covenant package as
they had in the first, including such sponsor-friendly terms as
a 200% contribution debt basket, said Ward McKimm, a
partner at Shearman & Sterling which acted for the