Covid 19 Financing Fund Portfolio Investments Through the Crisis
Financial sponsors have been focussing significant time, efforts and resources supporting their portfolio investments through the COVID-19 crisis. This briefing note considers some of the options available to sponsors to provide cash injections into portfolio companies in need of funding, both in the short term and the longer term.
Liquidity options under European cov-lite facilities
In covenant-lite transactions, the absence of ongoing financial maintenance covenants, which have traditionally operated as the trigger for a debt restructuring, means that it is the lack of sufficient liquidity which will instead be one of the more likely factors leading to the commencement of a restructuring process.
The European leveraged loan market has, as a whole, been affected by the economic consequences of recent government decisions and central bank action. As a result, the trading price of several leveraged loan names has fallen, in some cases, significantly below par.