Leveraged Finance Outlook: The Rise of Secured Bonds in M&A Deals

21 February 2019
View Debevoise Update
Key takeaways:
  • Early 2019 has seen a wave of secured bond issuances to finance large acquisitions as investors seek downside protection in a volatile market and issuers benefit from fixed-rate debt with flexible covenants.
  • Key considerations when issuing secured bonds in lieu of term loans or unsecured bonds include call protection, ability to incur junior lien debt, no MFN for incremental issuances and no restrictions on assignments.