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Covenant Tearsheet
29 July 2020 4:04 pm
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DoValue’s €265M 2025 Senior Secured Notes

Italian loan and real estate service company doValue S.p.A (the Issuer) has launched a new five-year €265 million senior secured bond to prepay a bridge facility used in the acquisition of 80% of the share capital of FPS Loans and Credits Claim Management Company S.A (FPS) by doValue Greece Holding S.M.S.A. (FPS HoldCo). It is contemplated that FPS HoldCo will merge into FPS (the Reverse Merger).

Investor meetings will be taking place until Wednesday, July 29, with pricing thereafter. Reorg calculates the opening senior secured leverage ratio to be 1.9x using €638.5 million senior secured debt, minus €162.4 million cash and cash equivalents and €244.7 million Cons. EBITDA. The opening net leverage ratio is calculated to be 2.5x, using €777.4 million total debt minus €162.4 million cash and cash equivalents and €244.7 million Cons. EBITDA.

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Italian machinery maker Industria Macchine Automatiche SpA, or IMA, has originally launched €1.28 billion of seven-year senior secured fixed and floating rate notes due 2027 to finance its buyout by BC Partners and So.Fi.M.A. Società Finanziaria Macchine Automatiche SpA. The fixed rate tranche has been upsized by €30 million to €830 million, sources told Reorg.

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Covenant Tearsheet
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Infopro Digital’s €685M 2025 Senior Secured Notes

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Covenant Tearsheet
22 October 2020 7:25 pm
Adevinta’s €1.06B 2025/2027 Senior Secured Notes

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Covenant Tearsheet
15 October 2020 7:28 pm
CANPACK’s $1.1B-Equiv 2025/2027 Senior Notes

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Covenant Tearsheet
24 September 2020 7:33 pm
iQera’s €200M 2024 Senior Secured Notes

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Covenant Tearsheet
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Maxeda’s €400M 2026 Senior Secured Notes

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Covenant Tearsheet
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Encore’s €300M 2025 Senior Secured Notes

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Covenant Tearsheet
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Stonegate’s £950M, €300M 2025 Senior Secured Notes

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Covenant Tearsheet
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Bite’s €650M 2026 Senior Secured Notes

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Covenant Tearsheet
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Covenant Tearsheet
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Covenant Tearsheet
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Thyssenkrupp Elevator’s €3B-Equiv Senior Secured Notes

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Covenant Tearsheet
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Covenant Tearsheet
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Covenant Tearsheet
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Covenant Tearsheet
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Covenant Tearsheet
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Covenant Tip 12
12 December 2019 6:52 pm Sabrina Fox
The Reports Covenant

The Reports Covenant provides critical information to investors about an issuer’s ongoing financial performance. In this ELFA Covenant Tip we explain common reporting requirements and what happens if the covenant is breached.

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Covenant Tip 11
12 December 2019 6:48 pm Sabrina Fox
Portability and Round-Tripping Risk

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Covenant Tip 10
12 December 2019 6:44 pm Sabrina Fox
Payments for Consent

The Payments for Consent covenant provides important protections to bondholders, but it’s disappearing from covenant protections. In this ELFA Covenant Tip, we explain the value of this provision, the risks presented when it’s missing, and how to find it. The Payments for Consent covenant precludes the issuer to paying any

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Covenant Tip 9
11 December 2019 6:40 pm Sabrina Fox
Restricted Payments Capacity

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Covenant Tip 8
26 June 2019 9:39 am Sabrina Fox
SALE AND LEASEBACKS, DEBT INCURRENCE, ASSET SALES

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Covenant Tip 7
24 June 2019 11:39 am Sabrina Fox
COVENANT CALCULATIONS, DEBT INCURRENCE, RESTRICTED PAYMENTS

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Covenant Tip 6
21 June 2019 3:48 pm Sabrina Fox
ELFA Covenant Tip #6

Some covenants contain a provision requiring investors to keep confidential any information the issuer delivers under the reports covenant. In this ELFA Covenant Tip, we explain how this provision creates an even more stringent requirement than what is usually present in a private loan, and raises the risk that investors become restricted on the name. A typical reporting covenant requires that the issuer must furnish reports required

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Covenant Tip 5
21 June 2019 2:20 pm Sabrina Fox
ELFA Covenant Tip #5

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Covenant Tip 4
20 June 2019 3:44 pm Sabrina Fox
ELFA Covenant Tip #4

Some covenants will allow a bond issuer to calculate capacity under the covenants as of the date of entry into a definitive agreement relating to a transaction, and do not require capacity to be retested at closing of the transaction. In this ELFA Covenant Tip, we explain how “Limited Condition Acquisition” flexibility works When the transaction could be credit positive (e.g., if the issuer is buying a valuable asset), this “Limited Condition Acquisition” flexibility could be seen as favourable to both the issuer and bond investors as it reduces transaction risk.

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Covenant Tip 3
20 June 2019 3:30 pm Sabrina Fox
ELFA Covenant Tip #3

Some covenants will allow issuers to access potentially significant dividend capacity even while the issuer is in default. In this ELFA Covenant Tip, we explore the decline of the no default blocker in the Restricted Payments covenant. This feature is one of a suite of provisions included in recent deals that preserve flexibility under the covenants even when the issuer might be in distress – in this case, owners could access dividend capacity even after the issuer misses a coupon payment.

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Covenant Tip 2
19 June 2019 5:50 pm Sabrina Fox
ELFA Covenant Tip #2

Some covenants provide borrowers with the flexibility to designate undrawn credit facility commitments as having been “incurred” under an applicable ratio or grower basket, rather than calculating capacity for that debt or lien at the time of draw down. In this ELFA Covenant Tip, we explain the "Designated Commitments" concept, the risks it presents, and where to find it. The provision allows the issuer to opportunistically calculate debt capacity, and then obtain or increase commitments, when it is favourable to the company (such as, for

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Covenant Tip 1
19 June 2019 5:22 pm Sabrina Fox
ELFA Covenant Tip #1

The secured debt leverage ratio typically does not impose an aggregate cap on secured debt capacity in a high yield bond covenant package. In this ELFA Covenant Tip, we explain how to measure an issuer's potential secured debt capacity. In addition to the secured debt leverage ratio, a high yield issuer is often able to secure several other material debt baskets - which means that total secured debt capacity is likely materially higher than where the secured debt leverage ratio is set.

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