EM issuers should steer clear of portability

Author: Tom Young | Published: 16 Apr 2015

The debate surrounding the usefulness of portability clauses in European high-yield continues, with one in-house counsel at IFLR’s Capital Markets Forum insisting it has no place in emerging market corporate-led deals.

The clause, which enables issuers to have the change of control offer requirement waived on certain conditions, has gained prominence in recent years. It appeared on 30% of European deals in 2014.

However, its use has been criticised by some market participants, who believe...