Covenants: High Yield Vs. Investment Grade

Law360, New York (August 15, 2013, 9:58 AM EDT) -- In our previous article, Knowing Who's Involved In Rule 144A, Reg. S Offerings, we discussed the most important provisions of high-yield indentures. This article will look in greater detail at the covenants contained in a typical high-yield indenture, and contrast those covenants with those found in an investment grade indenture. This article will also discuss how the covenant package in a high-yield indenture serves the three goals of the noteholder: preservation of cash flows, protection of issuer assets and preservation of the priorities of claimants....
To view the full article, register now.