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...“It is stunning that millions are marching around the world but the corporate world has been silent,” said Mittal of the response to the conflict....
...The deal would need to be structured to avoid triggering change-of-control covenants on $17bn of Altice’s bonds, as Covenant Review points out in a separate note....
...Corporate bond veterans may recall dynamics that played out with so-called ‘credit rating cliffs’ back in 2000–2002....
...And more broadly, corporate-finance lawyer types are creative!...
...But, believe it or not, the bond-covenant game seems to have worked in favour of the investors this week....
...Unilever can point to successes from its purpose-driven strategy, such as the growth of its “body-positive” campaign for Dove soap, now a €5bn brand....
...The maker of Magnum ice cream and Dove soap said underlying sales rose 7 per cent in the 12 months to December, in line with analysts’ expectations, while revenue fell 0.8 per cent to €59.6bn....
...“SBB’s own financial statements make it clear that it has been in breach of its financial covenant since 31 March 2023, yet it has been attempting to use misleading accounting changes to mask the covenant...
...As the Corporate Finance Institute explains, a common type is the ‘flip in’, which: . . . entitles existing shareholders to acquire shares of the company at a significant discount....
...“The key to all of this is the lack of covenants that have been foregone for 10-plus years,” said one portfolio manager, who avoided investing in Dish’s debt....
...Speaking to the FT recently, new chief executive Hein Schumacher acknowledged that corporate purpose could be an “unwelcome distraction” for some brands....
...Management has refinanced the balance sheet and believes there is “more stability” as profit-based covenants have been removed. Asos only has a minimum liquidity covenant of £90mn to worry about now....
...“We can come in with very good covenants and shape the transaction any way we like.”...
...The result is consistent with the national accounts data on corporate profits. Gareth Williams, the head of corporate credit research at S&P Global Ratings, emailed to say we were wrong....
...But those loosening covenants have also allowed many borrowers to avoid buying hedges to insure their floating-rate debts against rising rates — a decision that may now prove costly....
...He has denied any violation of his agreement and believes the restrictive covenants FTI cites are not applicable or unenforceable....
...The loose covenants that bond investors allowed to become the norm during those years could allow him to cling on to more of his empire than Malone had thought possible....
...The panellists in Miami offered a range of tips on how to avoid history repeating itself — among them, not allowing majority-owned or controlled companies the same covenant flexibility as public companies...
...Speaking after a sales update that showed the maker of Ben & Jerry’s ice-cream and Dove soap increased prices almost 11 per cent on average last quarter, Alan Jope said Unilever was “very conscious that...
...He’s waging his second proxy fight in as many years at US entertainment group Walt Disney; he’s trying to sharpen up Unilever, the maker of Marmite, Dove soap and Hellmann’s mayonnaise; and he’s “reluctantly...
...However, the US tech industry has nothing to learn from Europe when it comes to justifying steep numbers for corporate assets....
...The tech executive with the $50mn credit facility said HSBC’s pitch included a covenant that required the company’s annual growth rate to remain above 25 per cent....
...As we noted in a recent edition, there are signs that corporate enthusiasm for racial justice — seemingly so passionate three summers ago — is waning....
...Twenty-five years after Hein Schumacher spent time at a Dove soap factory in southern Germany as part of a graduate traineeship at Unilever, he is returning as chief executive to scrub up the consumer goods...
...According to Unilever’s corporate governance code, a non-executive director will rarely be re-elected to the board after serving more than nine years. Unilever and Spencer Stuart declined to comment....
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