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COVENANT FUNDAMENTALS:

Building Knowledge & Understanding the Basics Series

European High Yield Bonds and Leveraged Loans

Register Here

Navigate the Complexities of Covenants with Confidence

Unlock the building blocks of credit documentation with our comprehensive covenant fundamentals course. Learn directly from our team of expert lawyers as you explore real-world documents, with clear, practical analysis of common provisions. Perfect for those new to European leveraged finance as well as a helpful refresher for more experienced market participants.

Learn from the Leading Experts

Benefit from the knowledge and insight of seasoned lawyers averaging 19 years’ experience drafting and interpreting leveraged finance documents.

Practical, Real-World Application

Gain actionable skills through real-life examples and clear explanations—giving you practical tools for your own bond and loan analysis on a day-to-day basis.

Comprehensive and Flexible Learning

Master all the core covenant concepts at your own pace, with bite-sized modules and accessible content that fits your schedule—perfect for busy credit professionals.

Covenant Review’s training materials were essential in understanding how to think about covenants and have been incredibly helpful in my day-to-day work.

Vice Presidenta Global Asset Management Fund

Program Structure:

This comprehensive course lays the foundations for covenant analysis, including a thorough explanation of what the key covenants in European bond and loan documents are intended to do, how they work, and what they typically permit borrowers and issuers to do.

Module 1: The Covenant System and Restricted Group

Learning Objectives

  • Grasp what covenants are and why they matter in high yield and leveraged finance
  • Identify the entities covered by covenants—and why the “Restricted Group” is key

Module 2: Credit Support, Ranking, and Subordination

Learning Objectives

  • Decode the basics of guarantees and collateral in European leveraged financings
  • Understand how ranking and subordination determine your place in the capital stack

Module 3: Debt and Liens

Learning Objectives

  • Demystify how covenants control debt incurrence and asset pledging
  • Spot the most common “baskets” and carveouts for new debt and liens

Module 4: Restricted Payments and Permitted Investments

Learning Objectives

  • Learn how covenants protect against value leakage through restricted payments
  • Navigate typical payment and investment exceptions, including the “build-up basket”

Module 5: Asset Sales

Learning Objectives

  • Explore how asset sales covenants shape how proceeds can (and can’t) be used
  • Find out when—and at what price—creditors may get a share of asset sale proceeds

Module 6: Financial Metrics, Covenant Calculations, and Reporting

Learning Objectives

  • Master the key financial ratios and metrics underpinning covenant compliance
  • Uncover calculation flexibilities that increase covenant capacity
  • Understand the routine reporting obligations for borrowers and issuers

Module 7: Change of Control and Mergers

Learning Objectives

  • Pinpoint what triggers change of control and mergers covenants
  • See what’s typically required when transformative events occur
  • Examine standard exceptions and carveouts

Module 8: Amendments and Waivers

Learning Objectives

  • Discover what it takes to amend or waive bond and loan terms
  • Recognize potential vulnerabilities in amendment provisions

Module 9: Call Protection, Transfer Provisions, and Debt Buybacks

Learning Objectives

  • Understand the rules for prepaying or buying back debt early
  • Get to grips with transfer restrictions affecting lender exit strategies
  • Navigate borrower and sponsor buyback requirements

Module 10: Liability Management Transactions

Learning Objectives

  • Break down the mechanics and risks of dropdowns, uptiers, and double dips
  • Identify document terms that can expose investors to liability management strategies

Module 11: Intercreditor Agreements

Learning Objectives

  • Learn the purpose and scope of intercreditor agreements
  • Understand key provisions: ranking, payment priority, enforcement, and payment stops

Meet your Hosts:

Jane Gray, Solicitor

Head of European Research

Jane is a dual-qualified solicitor with more than 15 years of experience in the European leveraged finance market.

Shoshanna Harrow, J.D.

Senior Covenant Analyst

As a securities law and corporate finance specialist, Shoshanna has advised issuers, underwriters, and investment funds on a variety of financing transactions.

Alastair Gillespie, J.D.

Senior Covenant Analyst

Alastair is a New York securities lawyer with a decade of experience representing issuers and underwriters in the London and New York high yield and leveraged finance markets.

Shane Burke, Solicitor

Senior Covenant Analyst

Shane has extensive experience advising both sponsors and arrangers on broadly syndicated leveraged loans.

Nicholas Diamond-Krendel

Senior Covenant Analyst

Nick has over 10 years’ experience advising a wide range of investment banks, sponsors and corporates on various LBOs, refinancings, bank/bond deals and other cross-border financing transactions.

Register for the Covenant Fundamentals Series Here.

Covenant Review is the market’s trusted authority on covenant analysis and insights for bonds and loans. Hosted by our team of expert lawyers, this series provides an excellent educational opportunity for building a strong foundation in credit analysis, whatever your experience level.

Please note the course is only available to Covenant Review subscribers and trialists.

FAQ:

Who can participate in the Covenant Fundamentals Series?

Only Covenant Review subscribers can participate in the Covenant Fundamentals Series.

What is the cost of the Covenant Fundamental Series?

Our course is free of charge for Covenant Review subscribers!

How long does the course take to complete?

If you go through all the course content sequentially, we expect the course to take 5-6 hours to complete, depending on your level of familiarity with the course content.