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...The loan sale document says that there are “no current or uncured breaches of covenants”. The mezzanine loan, which ranks behind Bank of Ireland’s senior debt, is not included in the sale....
...That fuelled anxiety about the prospect of companies breaching lending covenants or going bankrupt, as happened to aggregator Benitago in August....
...Sports Direct, owned by Mike Ashley’s Frasers, has been accused of not carrying out most of the refurbishment work that it was contractually required to do before it departed, breaching some covenants and...
...While change of control covenants might very well be part of the standard boilerplate template that legal firms and banks start with when putting together a new issue, not every bond will have one....
...“Conditions have certainly blown loan-to-value ratios out of covenant levels for many developers and owners,” said Saul Goldstein, founder of distressed fund ActivumSG....
...Now CreditSights says that a handful of banks — including JPMorgan, Goldman Sachs and Barclays — are “leading the way” in liquefying the market for these private direct loans....
...Much depends on the willingness of banks to roll over about €700mn of secured loans due this year. In its favour, SBB’s portfolio remains relatively attractive....
...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....
...Hipgnosis Songs Fund has axed its dividend because the payment would have jeopardised the group’s ability to comply with debt covenants, sending shares in the music rights owner down by 10 per cent....
...But covenant levels will deteriorate as this buffer burns down, so the equity value will quickly move from little to nothing....
...“We can come in with very good covenants and shape the transaction any way we like.”...
...The loan has to be originated, covenants negotiated, creditworthiness established — basically all the activities that banks used to do (and to some extent still do) before tighter regulations, capital requirements...
...Naturally, he began his career at the family bank NM Rothschild. But he later fell out with his cousin Evelyn de Rothschild over the strategic direction of the bank, and struck out on his own in 1980....
...The bank, he noted, regarded Trump as a “whale” of a client and had never complained or suffered harm....
...He has denied any violation of his agreement and believes the restrictive covenants FTI cites are not applicable or unenforceable....
...[Drahi]’s basically admitted that everything’s for sale, but you have all of this distressed debt that’s going to mature or go into default if it has covenants.”...
...If a credit event is triggered (eg, a broken loan covenant), a bank that has lent to a PC fund has the right to mark the loan to market, and has discretion over the mark....
...When Lloyds took over HBOS, executives were dismayed to find there were few covenants that would easily give the bank the ability to enforce its rights on the Telegraph if the loan terms were breached or...
...So-called restrictive covenants — non-compete and non-solicit provisions — are increasingly controversial in the US....
...Since the global financial crisis, the size of the market for CLOs has grown almost fourfold: to nearly $1tn, according to Bank of America....
...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....
...Between them, the Federal Reserve, Bank of England and European Central Bank have raised rates 35 times since inflation started ripping....
...The lending cycle includes origination, portfolio management and the key task that many commercial bankers have historically been involved with: managing stressed credits from initial covenant default through...
...It is basically a bank [problem],” he said....
...“Banks need to work with their industry peers to not only set standards of their own, but establish what amounts to a covenant for collective enforcement.”...
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