Boehly: Freescale buyout introduced covenant-lite debt at seven times leverage
Todd Boehly · Todd Boehly - The Next Berkshire Hathaway at Eldridge (Capital Allocators, EP. 223) · Nov 22, 2021 · at 14:59
Todd Boehly (former Guggenheim President) describes observing early indicators of debt market overheating leading up to the 2008 financial crisis.
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“I remember seeing Freescale get bought out, and that was a big acquisition that was done with a lot of debt, and that was the first time Covenant Lite debt started really creeping into the market. And I think the free scale debt was LIBOR plus two 25, and it was seven times levered when there was a lot of capex in the business.”
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