The ELFA Diligence Series is designed to foster effective engagement between investors and management on important issues, both during the primary marketing stage for deals, and following the launch of our ELFA COVID-19 Best Practice Guide, through reports season.
We will continue to develop tools and make them available to our members and the wider market under the ELFA Diligence series – it is just one of the many ways that ELFA is working to strengthen the resilience of the European leveraged market by facilitating active and effective engagement among market participants.
The ELFA Covid-19 Reporting Best Practice Guide reflects the joint efforts of the Disclosure & Transparency Committee and the ESG Committee to support discussions between investors and management on critical issues, including operational challenges, cash generation, ESG initiatives, liquidity and debt incurrence, capacity to incur additional priming debt, covenants, and protecting employees during the pandemic.
Part of ELFA’s mission is to support the European financial markets by facilitating effective engagement between market participants, which is ever more important during this time of unprecedented disruption to companies and markets. We hope you find the Best Practice Guide useful in guiding your discussions with management during the upcoming results season, and would be grateful for any feedback you have.
The Disclosure Committee, on behalf of the Board, developed the ELFA Key Covenant Questionnaire above for investors as a tool to encourage engagement by market participants on covenant terms during roadshow meetings. The Questionnaire is the first initiative of the ELFA Diligence series, under which we will publish tools to facilitate investors’ engagement with issuers on covenant risk.
The purpose of this tool is to encourage disclosure of, and facilitate discussion about, key covenant metrics, and to highlight the intentions of the issuer with respect to ongoing reporting.
Tell us about your experiences engaging with companies and their advisors, or send additional questions for the Disclosure & Transparency Committee to consider through our feedback page. Thank you for taking the time to submit your feedback!
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