Cov-lite
Business Concept
Cov-lite...paper for a serious reversal in the market."), the movement in the market was inexorable. Others argued that the move to cov-lite was a welcome simplification of loan documentation, and was fully justified as the banks would hedge their... In this article: Cov-lite, Credit crunch, The Economist, Derivative, Anthony Bolton, Fidelity Investments, Kohlberg Kravis Roberts, Financial Times, and First Data |
-
www.iflr.com
Put up or shut up KKR keeps cov-lites - International ...
... in its $26 billion buyout of First Data Crop that it wouldn't accept weaker terms. ... Banks are balking at cov-lite terms and with so much paper available ...
-
Buyout produces record cov-lite loan - International ...
... species as US buyout firm KKR has raised the worlds biggest covenant-lite loan ... 29 billion acquisition of credit-card company First Data, announced in April. ...
-
online.wsj.com
WSJ.com
In the U.S., cov-lite deals accounted for about 27% of first-quarter buyouts. ... Note: Data reflect only those loans disclosed by underwriters; some may not have ...
-
ftalphaville.ft.com
FT Alphaville " Blog Archive " Dear Henry, about that cov ...
This is twice the size of the previous biggest "cov-lite" loan. The First Data deal also benefits from more than $7bn of underwritten bridge ...
-
www.portfolio.com
A Closer Look At Cov Lite Loans - Market Movers - Portfolio.com
... great, in-depth look today at the "cov-lite" phenomenon whereby loans are increasingly being syndicated ... up for First Data, or the same ...
-
search.ft.com
FT.com / Search
... Pik bonds and cov-lite loans featured strongly in a record-breaking first half... fund a $29bn buy-out of First Data, the credit card processing business? ...
-
www.ft.com
FT.com / UK - KKR takes $16bn cov-lite option
The latest UK and international business, finance, economic and political news, ... processing business First Data with the world's biggest "covenant-lite" loan. ...
-
FT.com / Capital Markets - KKR in cov-lite loan milestone
The rise of so-called "cov-lite" loans has reached another milestone after it ... First Data, the payments and credit card processing company, accepted a $26.1bn ...
-
Loans More Liquid Than Bonds - Market Movers - Portfolio.com
There are impressive financings, and then there are mind-blowing financings. And they way that KKR is raising $24 billion to fund its acquisition of First Data ...
Trends
Loading...
More on Cov-lite
Description from Wikipedia:
Cov-lite ("covenant light") is financial jargon for loan agreements which do not contain the usual protective covenants for the benefit of the lending party. Although traditionally banks have insisted on a wide range of covenants which allow them to intervene if the financial position of the borrower or the value of underlying assets deteriorates, around 2006 the increasing strength of private equity firms and the decreasing opportunities for traditional corporate loans made by banks fuelled something of a "race to the bottom" with syndicates of banks competing with each other to essentially offer ever less invasive terms to borrowers in relation to leveraged buy-outs.
Cov-lite lending is seen as more risky because it removes the early warning signs lenders would otherwise receive through traditional covenants. Against this, it has been countered that cov-lite loans simply reflected changes in bargaining power between borrowers and lenders, and followed from the increased sophistication in the loans market where risk is quickly dispersed through syndication or credit derivatives.
Explore everything named Cov-lite...
