Debt capital markets update: Covenants

Date 8 April 2020

Type Insights

For many, the end of the March quarter saw the first test of covenants during the COVID-19 crisis. Whilst the backward-looking nature of financial covenants means few should face breaches this time, the number that will breach rises dramatically as we move through the second quarter and beyond.

Our new debt capital markets update looks at how lenders can respond to the prospect of mass covenant breaches and the conditions/covenants that should accompany new liquidity facilities.