London, 31 July 2025 — The European Leveraged Finance Association (ELFA) has published a summary of the industry roundtables, held in response to its recent Open Letter (“Taking Stock of Market Standards on Disclosure, Process, and Engagement in the European Leveraged Finance Market”) which highlighted persistent concerns around limited disclosure, overly compressed deal timelines, and increasingly restrictive transferability terms, all of which are undermining efficiency and resilience in Europe’s leveraged finance market.
The roundtables convened a broad cross-section of market participants, including lenders, law firms, banks, and sponsors, to explore ways to improve market practices and reinforce transparency, fairness, and investor confidence.
The discussions focused on compressed timelines and complexity in leveraged loan and high-yield bond market documentation, insufficient covenant information, increasing restrictions on transferability and the use of password-protected websites for financial information:
- Compressed Timelines: Rushed documentation processes limit lenders’ ability to accurately assess and negotiate terms, particularly in repricings and new money deals.
- Insufficient Covenant Disclosure: Lack of clarity around covenant capacity and usage increases risk and hinders investor analysis.
- Restrictive Transfer Provisions: Onerous transferability restrictions are stifling secondary market liquidity and raising concerns among investors.
- Password-Protected Information: The use of gated sites is impeding analysis and market access and continues to frustrate both investors and analysts.
ELFA will continue to engage on these issues with Private Equity sponsors – specifically Heads of Businesses and relevant stakeholders; and continue to collaborate with its Partners and Initiative Committees to educate, gather feedback and work on initiatives to further address the issues discussed. ELFA will update the best practice guidance based on suggestions from the discussion.
Ed Eyerman, CEO of ELFA, said “Open dialogue is essential to address these systemic challenges. Through continued engagement, our aim is to ensure a more transparent and efficient market for the benefit of all.”
Read the summary of Engagement Roundtables here
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