Edcon: South African high yield returns

Author: Danielle Myles | Published: 10 Mar 2011
South African issuers have returned to the international high yield market, and they are obtaining the covenants they got in the market’s peak.

Edcon’s 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 bookrunners.

This...