Understanding High-Yield Bonds

  • ID: 3098996
  • Book
  • Region: Global
  • 226 Pages
  • PEI Media
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High-yield bonds are increasingly a financing tool of choice with growth especially strong in Europe and among private equity sponsors. This growth creates a need for knowledge about the nuances of this complex asset class.

This book is an essential top-drawer reference guide for all professionals involved in originating, structuring/restructuring, issuing and investing in high-yield bonds, and drafting and negotiating the covenant package.

This book provides a detailed roadmap to structuring, financing and marketing high yield, the key issues driving the market, and the regulatory environment. It offers an unrivalled insight into the covenant package and their practical implications for those party to them, including investors, issuers and financial sponsors.

This publication will help you to:

- Develop a thorough understanding of the covenant package
- Navigate the complex regulatory environment in the US and EU governing HYB offerings
- Understand the challenges to financing acquisitions using HYBs and mechanisms used
- Prepare and draft the Offering Memorandum
- Appreciate the implications of the covenants from an investor and issuer perspective
- Comprehend the impact of covenants in workout scenarios

Who should read this guide?

- Banking professionals
- Institutional investors
- Private fund practitioners, inc fund managers
- Portfolio companies
- Lawyers
- Advisers
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Section 1: Structuring and marketing highyield bonds

1. Commercial factors driving the choice of high-yield terms
By Oliver Smiddy, Private Debt Investor

2. High-yield bonds in acquisition financing
By James McDonald and Riley Graebner, Skadden, Arps, Slate,

3. Common issues and regulatory barriers when building a multi-jurisdictional collateral package
By Bernard Sharp and Adam Farlow, Baker & McKenzie LLP

4. Drafting the Offering Memorandum
By Mark Bergman, Paul, Weiss, Rifkind, Wharton & Garrison LLP

5. Marketing a high-yield transaction to investors
By Luca Laino, UBS AG

Section 2: The covenant package

6. High-yield covenants and terms – introductory concepts
By Rod Miller, Paul Denaro and Jessica Cunningham, Milbank, Tweed, Hadley & McCloy LLP

7. Protecting the bondholder’s place in the queue – the role of subordination, anti-layering, liens, guarantees and time
By Rod Miller, Peter Schwartz, Paul Denaro and Kevin MacLeod, Milbank, Tweed, Hadley & McCloy LLP

8. Limiting leverage – limitations on incurrence of indebtedness and sale and leaseback transactions
By Stuart Morrissy and Jessica Cunningham, Milbank, Tweed, Hadley & McCloy LLP

9. Containing and protecting cash and assets – limitations on restricted payments, asset dispositions and dividend stoppers
By Naomi Ishikawa, Joshua Zimmerman, Trevor Truman and Jessica Zhou, Milbank, Tweed, Hadley & McCloy LLP

10. Game changers and self-dealing – limitations on mergers, change of control and affiliate transactions
By Arnie Peinado, Deborah Conrad, Ben Miles and York Wu, Milbank, Tweed, Hadley & McCloy LLP

11. Paying off high-yield bonds – redemptions, tender offers, defeasance and satisfaction and discharge
By Stuart Morrissy, Brett Nadritch, April Heidt and James McFarlane, Milbank Tweed Hadley & McCloy LLP

Section 3: Investor perspectives

12. The value of analysing high-yield bond covenants
By Garland Hansmann and David Ford, ICG

13. How the covenant package can influence investment returns
By David Fancourt, M&G Investments

Section 4: Issuer considerations

14. Regulatory considerations when issuing high-yield bonds
By Mark Bergman, Paul, Weiss, Rifkind, Wharton & Garrison LLP

15. Options and considerations for structuring high-yield transactions
By Adam Farlow, Baker & McKenzie LLP

16. The implications of high-yield bonds for issuers
By Mark Bergman, Paul, Weiss, Rifkind, Wharton & Garrison LLP

Section 5: When things go wrong

17. High-yield intercreditor structures and their impact on negotiating dynamics
By Yushan Ng and Karen McMaster, Cadwalader, Wickersham & Taft LLP

18. Covenant application and enforcement scenarios – how it works in the real world
By Yushan Ng, Richard Nevins and Alex Kay, Cadwalader, Wickersham & Taft LLP
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown