High Yield and Leveraged Loan Covenant Fundamentals: Building Knowledge and Understanding the Basics Series

Join Covenant Review lawyers for the second session of a three-part series, High Yield and Leveraged Loan Covenant Fundamentals: Building Knowledge and Understanding the Basics.

Leverage and Subordination: The Debt and Liens Covenants

This session focuses on the Debt and Liens covenants, which are key to understanding leverage, dilution and subordination risks, providing participants with the tools for day one assessment of more leverage capacity.

Topics Include:

• How to determine capacity for additional debt and liens, and to what extent senior secured creditors’ claims can be subordinated or diluted

• Understanding the interaction of ratios carveouts and permitted “baskets”

• Calculation mechanics including EBITDA addbacks and pro forma wording

• Understanding where debt can be placed in the capital structure alongside the collateral and guarantee package, and how that impacts recovery risk

If you have any questions, reach out to the events team at events@creditsights.com.