Understanding High Yield Bonds: A complete guide for investors, issuers, banks and advisers

Lessons/Primers

Excerpt of chapters 6 – 11 from PEI’s publication Understanding High Yield Bonds: A complete guide for investors, issuers, banks and advisers. Authored by members of Milbank’s Global Securities high yield team, Chapters 6 – 11 are an essential reference guide for all professionals involved in originating, structuring/restructuring, issuing and investing in high-yield bonds, and drafting and negotiating the covenant package.

  1. High-yield covenants and terms – introductory concepts
  2. Protecting the bondholder’s place in the queue – the role of subordination, anti-layering, liens, guarantees and time
  3. Limiting leverage – limitations on incurrence of indebtedness and sale and leaseback transactions
  4. Containing and protecting cash and assets – limitations on restricted payments, asset dispositions and dividend stoppers
  5. Game changers and self-dealing – limitations on mergers, change of control and affiliate transactions
  6. Paying off high-yield bonds – redemptions, tender offers, defeasance and satisfaction and discharge

Download Copy: Understanding High Yield Bonds

Image Source: PEI Alternative Insight

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