Our Legal Insights Blog

As someone who's spent years in the trenches analyzing covenant packages and watching borrowers execute increasingly sophisticated liability management exercises (LMEs), I wanted to share some critical insights from our recent webinar on this essential topic. If you missed the live session, don't worry – the replay is available and packed with actionable frameworks you can use immediately.

If you've ever found yourself staring at a high yield bond prospectus wondering whether that revolving credit facility (RCF) sitting in the structure chart can actually jump the queue and become super senior, you're not alone. This blog will walk you through a real-world example that perfectly illustrates why sometimes the devil really is in the details – and why you should never be afraid to ask the questions of management.

In our recent FLT Office Hours session, we discussed the practical, covenant-by-covenant assessment that can completely change how you approach these deals. If you missed it, here's what you need to know.

In today's rapidly evolving markets, precise credit decisions have never been more critical. But here's the challenge: what happens when the fine print becomes your biggest obstacle? For many credit teams, legal covenants feel like navigating through dense complexity. They recognize these clauses are essential but lack the confidence to interpret them with certainty.

The market was buzzing this week over Urbaser’s inclusion of tariffs in their litany of add-backs to EBITDA, but the reality was actually worse than that for lenders. The provision was ultimately removed from the terms of the borrower’s debt, but its inclusion portends of future borrower flexibility – and wise lenders will prepare.

Liability Management Exercises (LMEs) have evolved from niche, back-pocket tools to headline-making market strategies in leveraged finance. But how did they get here, what’s happening now, and where is the market heading? Whether you're advising clients, reviewing documentation, or negotiating new deals, understanding the rise, risk, and reach of LMEs is critical to staying competitive and protected.

Welcome back to Part 2 of our series on the emerging developments in Co-ops and LMEs. In Part 1, we discussed the evolving landscape of European credit and the transformation of Cooperation Agreements (Co-ops). We covered the initial considerations when a Co-op agreement lands on your desk. Now, we shift our focus to how minority shareholders can navigate this new frontier, the debate around "Omni-Blockers," and address some key concerns.

The world of European credit is changing at a breakneck pace. With liability management exercises (LMEs) becoming more common and Co-operation Agreements (Co-ops) rapidly evolving, understanding the nuances of documentation is no longer just good practice – it's crucial for survival and success.