It was a muted start to the year for the acquisition and leveraged finance market due to a challenging macroeconomic climate. Interest rate hikes at one of the fastest paces on record, surging inflation (particularly in...more
Welcome to Debt Download, Goodwin’s monthly newsletter covering what you need to know in the leveraged finance market. We hope you are enjoying the Spring weather! Note: Some of the links in this newsletter may redirect...more
The hospitality industry is facing an unusual challenge. With rising consumer demand, hotels are hitting — and even exceeding — pre-pandemic levels for revenue per available room (RevPar) and EBITA. Yet interested investors...more
For fast-growth companies in particular, recurring revenue (or annualised recurring revenue, "ARR") loans are increasingly common in the European loan market, as lenders and borrowers become more familiar with a new...more
It was a year of rebounds in 2021, from the early hike in refinancing activity to the subsequent surge in M&A and buyout deals, as well as frenetic activity in the PE space, all of which contributed to a noteworthy uptick in...more
EBITDA has long been the trusted metric for leveraged financings, but the European market is becoming increasingly familiar with a new barometer of performance: annual recurring revenue (“ARR”)....more
HEADLINES Leveraged finance markets largely returned to the pre-pandemic status quo in the first half of 2021 following a tumultuous 2020. From January to June 2021, US leveraged loan issuance climbed 60 percent compared to...more
Leveraged buyout high yield bond and leveraged loan issuance fell in Q3 2020 as a lack of buyout deals in a still cautious M&A market dampened appetite for financing - Although leveraged buyout (LBO) activity showed signs...more
As the UK begins to emerge tentatively from lockdown, amendment and waiver processes continue on leveraged finance facilities for businesses which have been hit by COVID-19. ...more
As COVID-19 sends shockwaves through the global economy, many experts are predicting one of the deepest recessions in U.S. history. The hospitality, employment services, transportation, travel, leisure, mining, and oil...more
To raise new debt at a time of low liquidity, leveraged and other sub investment grade companies must navigate restrictions in loan and bond documents. Many companies are seeking funding to survive the currently...more
With many borrowers facing a current or looming liquidity crunch but having a committed revolving line of credit potentially available to them, borrowers and lenders need to carefully review their loan documentation when...more
The impact of COVID-19 is developing fast across the globe and across industries. We outline a selection of the issues which we are currently busy discussing with lenders, sponsors and portfolio businesses in various...more
Hogan Lovells was a sponsor of last week's Creditflux/Debtwire European Direct Lending Forum and London leveraged finance partner, Jo Robinson, took part in a panel discussing the influence of large cap precedents on...more
- The covenant-lite share of European institutional loan issuance in 2019 reached 92 per cent - European leveraged loan issuance in 2019 was down slightly on the previous year to €209.1 billion - High yield bond...more
In 2019, a wave of bond-to-bond refinancings, as well as significant bank and term loan-to-bond refinancings, punctuated a strong year for debt financings after a slow first quarter. Throughout last year, debt investors...more
European Leveraged Finance Client Alert Series: Issue 8 - The traditional approach to the treatment of disposal proceeds in leveraged loan agreements has evolved in recent years, as borrowers seek to retain greater...more
The LMA Early Evening Seminar at Hogan Lovells Amsterdam on 1 October 2019 explored some trends in the leveraged finance market, with reports of a very healthy Dutch market, notwithstanding effects of Brexit, recession...more
European Leveraged Finance Client Alert Series: Issue 6 July, 2019 - Sub-investment grade rated property companies in the German market are increasingly supplementing conventional real-estate senior secured bank financing...more
In this report, members of Dechert’s multidisciplinary permanent capital team provide a round-up of legal and business considerations for private credit, BDCs and everything in between. Topics covered include: -...more
The definition of EBITDA has always been a fundamental negotiation point in the leveraged finance market; ultimately, a legal construct as opposed to one derived from any recognised accounting standard. In recent years,...more
On November 26, 2018, the Treasury Department and the Internal Revenue Service issued highly-anticipated regulations regarding the new section 163(j) limitation on business interest deductions. Section 163(j) was modified as...more
The new tax rules are expected to have an immediate impact on leveraged companies and leveraged finance transactions. On December 22, 2017, President Trump signed into law the “Tax Cuts and Jobs Act” (the Act).1 This...more
Subsequent to the close of the consultation period following the ECB's publication of the draft guidance, the ECB issued the final guidance to banks on leveraged transactions ("Guidance") on May 16, 2017. The Guidance applies...more
On November 23, 2016, the European Central Bank (ECB) published its draft guidance on leveraged transactions in order to establish guidelines on how to measure and monitor the exposure to leveraged lending for significant...more