- Twenty European high-yield deals this year have
- Portability clauses allow the issuer, in certain
circumstances, to waive bondholders’ change of
- It is being pushed by private equity-owned
issuers, not corporate issuers;
- Some issuers have managed to have their super
senior revolving credit facilities also include
- There is minimal investor pushback, and the trend
is tipped to continue at least until the
market’s summer hiatus in two
- JC Flowers’ acquisition of Cabot
Financial, which has issued portable bonds, will be the first
test of the clause.
Portability has become a hallmark of
Europe’s 2013 high-yield market, and the lack of
investor pushback suggests it is here to stay.
Some issuers with bond-dominated capital structures have
pushed portability into their super senior...