Debt capital markets update: Covenants
Date 8 April 2020
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.