Covenants
topic on 3 shows · 5 statements across 5 episodes
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5 statements about Covenants, every show
Sam Lessin: Structured shell company deals offer investors asymmetric downside protection
“The reality is there's all sorts of like covenants and deals that go into these types of situations where like, if you really want to be wonky about the finance of it, it's pretty hard to lose money. And there's a ton of asymmetry on them, right?”
Milgram: Wider covenants mean distressed companies require bigger operational turnarounds
“Today, covenants are much more, much wider, and as a consequence, when you violate a covenant or get to a place where you need to restructure one way or another, the business is just worse off generally and needs a much bigger operational reworking.”
Modern High-Yield Restructurings Are Driven by New Capital, Not Covenants
“The covenants are nice to have. They allow you to reprice risk along the way. We still have them in most of our middle market deals, but the big quality companies, syndicated loan market, et cetera, the high yield market, they don't have covenants. So the rest…”
Owl Rock Assigns Independent Covenant Specialists to Every Deal
“Every deal we do, we have someone who is focused exclusively on covenants. They don't talk to any PE firms. They are just trying to understand if things go wrong, what is the art of the possible?”