Simplified, though still in-depth, the issuance summaries recap essential terms in bank agreements and bond structures, such as seniority, security, guarantee, negative covenants and financial covenants.
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Lippo is also seeking the consent of the 2019 note holders who do not participate in the exchange for the removal of all restrictive covenants on the residual 2019 notes, and the consent of the 2020 and 2022 noteholders to amend certain covenants to bring them in line with the covenants of the proposed 2023 notes.
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Before the crisis, most leveraged loans had some such covenants.
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Financial covenants at WYNN's subsidiaries do not materially restrict dividends.
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Other customary covenants consist of lien limitations and transaction restrictions.
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Now, debate simmers over whether racial covenants should be removed.
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While the Supreme Court ruled such covenants to be unconstitutional
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Puma's spokeswoman said the firm was complying with its covenants.
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Several investors said they were not focused on the deal's covenants.
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The holding company is not subject to any material financial covenants.
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Some of EnQuest's bond maturity terms and covenants were also relaxed.
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It's also the continued weakening of leveraged lending standards and covenants.
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Covenants will not save Israel from Iranian progress on nuclear weapons.
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SB 741 — Relating to restrictive covenants regarding firearms or firearm ammunition.
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Indeed, striking the language of racial covenants is no simple task.
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Instead, it supported racist covenants and typically denied mortgages to blacks.
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Upscale white neighborhoods form covenants barring black families from home ownership.
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And of course forget that the covenants haven't been renegotiated yet.
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Depending on how long this virus lasts, there are leverage ratio tests for maintenance covenants or incurrence covenants based on Ebitda, according to Michael Chernick, a partner in the finance group at law firm Shearman & Sterling.
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Many affluent suburbs passed housing covenants to keep blacks and Latinos out.
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Fire insurance did not exist, and courts were merciless in enforcing covenants.
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Avon was in compliance with all covenants as of March 31, 2017.
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It said it expects to continue to operate within its banking covenants.
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And you see that in – they call leverage loans and weaker covenants.
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Maybe only 30% of the debt has covenants, maybe 70% does not.
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It also started formal discussions with its lenders to evaluate the covenants.
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Adding financial covenants and accelerating amortizing repayments is still fairly rare and currently reserved for low-rated issuers, the second banker said, adding that covenants could become more prevalent than they currently are if the market continues to flounder.
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The covenants have also been applied to companies that have already become insolvent.
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Leverage, Covenants & Guarantees Sprint's leverage (Fitch defined total debt / EBITDA) as of Sept.
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The matter will not hurt the company's compliance with debt covenants, Brixmor added.
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The facility agreement contains no financial covenants except compliance with regulatory capital requirements.
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The notes do not contain any financial covenants, similar to Marriott's existing bonds.
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"There are some loan covenants they want to reset," said one banking source.
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Policies that make such problems worse — like restrictive covenants, redlining, blockbusting, and steering.
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So before the Great Recession, that's 70% of the debt was -- had covenants.
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Unlike in the international market, where issuers often hold consent-solicitation exercises to amend the covenants in old bonds to match new ones, Chinese issuers have not given much thought to legacy notes when agreeing to attach covenants to new ones.
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Stokes, for one, is not overly concerned with the weakening covenants on bank loans.
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"Bondholders have a laser-focus on covenants," said Gary Stromberg, an analyst at Barclays.
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But instead of white residents embracing their new neighbors, some created restrictive housing covenants.
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Kantar had already been through one round of disagreement with investors over its covenants.
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Sources said it was rare for a high-yield issuer to drop its covenants.
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Cash leakage and debt covenants are suspended if bonds are upgraded to investment-grade.
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Some companies have implemented similar covenants in previous downturns in sectors besides upstream oil.
|
|
After a slide in Weber Automotive's 2018 earnings, the company breached its debt covenants.
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|
They ensure there is collateral on the loan, they insist on warrants and covenants.
|
|
Leverage, Covenants & Guarantees Sprint's leverage (debt / EBITDA) as of June 30, 2016 was 7503x.
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|
It has received waiver consents from most of its lenders for breach of covenants.
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Rcom has breached some debt covenants, but has received waiver consents from its lenders.
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He also acknowledges that racially restrictive covenants played a significant role in maintaining segregation.
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|
In some places, official records can now be amended to account for racial covenants.
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|
Still, racial covenants continued to be written, enforced with threats of civil legal action.
|
|
Investors are able to demand extra covenants for the first time in many years.
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|
"Pretty much every community in the country is going to have racial covenants," said historian Kirsten Delegard, a founder of the Minneapolis-based Mapping Prejudice project, which researches the covenants that barred nonwhites from buying property in the city's most desirable neighborhoods.
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There has been a huge deterioration in standards; covenants have been loosened in leveraged lending.
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This allowed it to alter its debt and liens covenants to the detriment of bondholders.
|
|
The new term loans and revolver eliminate the financial covenants under the old credit facility.
|
|
This week food-service distributor US Foods repriced a US$2.2bn term loan without covenants.
|
|
Regulators have said loans without strong covenants should have other safeguards to protect credit quality.
|
|
People are segregated off and we have these restrictive covenants that run with the land.
|
|
For commercial loans, the OCC found looser standards in pricing, guarantor requirements, and loan covenants.
|
|
At the later stages, liquidation preferences, covenants and board control shift the balance of power.
|
|
"The foundation of Anglo-Saxon banking principle is 'sound lending and fair covenants'," Cembalest said.
|
|
A month earlier it had said it would be in compliance with its financial covenants.
|
|
So they're already risky, and the lack of strict covenants makes then even more so.
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|
Most of us do not care about a random pharmaceutical company meeting its debt covenants.
|
|
A hint of snarl pops from the tailpipes, but it won't violate any neighborhood covenants.
|
|
Theologians consider this to be one of the most important covenants recounted in the Bible.
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|
"Notwithstanding these revisions, we continue to maintain a strong free cash flow profile, our debt structure has no ongoing maintenance covenants and we are in compliance with all of our debt covenants," Mark Thompson, Chairman and CEO of Concordia, said in a press release.
|
|
This is driven by the unconstrained ability to defer coupons, subordination and the absence of covenants.
|
|
Ditto the same-sex covenants he performed in the '70s, decades before the world caught up.
|
|
St Louisians resorted to private racial covenants to prevent blacks from buying properties in white districts.
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|
BEING CAREFUL Some companies have implemented similar covenants in previous downturns in sectors besides upstream oil.
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|
For all the other covenants, clauses and contractual agreements, find a good lawyer and get venturing.
|
|
The covenants limit senior secured debt/adjusted EBITDA to 2908x for the company and its subsidiaries.
|
|
Other structural features include both debt service covenants and restricted payment conditions, which are tested quarterly.
|
|
Crucially, the company's balance sheet should be able to fulfil all debt covenants, the brokerage added.
|
|
More middle-market loans have covenants, but aggressive Ebitda definitions are undermining limited protection for lenders.
|
|
The facility is unsecured and there are no financial covenants, Anglo Asian said in a statement.
|
|
The covenants limit senior secured debt/adjusted EBITDA to 3.0x for the company and its subsidiaries.
|
|
"They've defaulted on their borrowing covenants but they're not struggling to repay their debts," he said.
|
|
These covenants keep debtor companies from acting in ways that put payments to investors at risk.
|
|
Post-war, but particularly in the 1960s, discriminatory redlining policies and restrictive housing covenants were invalidated.
|
|
The majority of US leveraged loans lack a full set of lender protections, known as covenants.
|
|
In 22016 Woodrow Wilson piously announced that he sought "open covenants of peace, openly arrived at".
|
|
Loose covenants are also creeping into documentation while aggressive use of proceeds are starting to emerge.
|
|
It says it has set up several bodies to monitor compliance with international human rights covenants.
|
|
Tullow's chief financial officer, Les Wood, said the group was "comfortable" with its covenants with banks.
|
|
Tullow's chief financial officer, Les Wood, said the group was "comfortable" with its covenants with banks.
|
|
For one thing, loan covenants — the terms that protect the interests of lenders — have never been weaker.
|
|
Aurora also said it had made amendments to its secured credit facilities, including removal of some covenants.
|
|
The liquidity covenants could help banks monitor companies such as Chesapeake before cash crunches grow too severe.
|
|
Nearby towns used restrictive covenants to keep prospective Jewish homeowners out of their communities at the time.
|
|
Many inserted ownership requirements into building deeds, known as "racially restrictive covenants," to selectively filter potential buyers.
|
|
Valeant, which is currently in compliance with its covenants, will begin the amendment process "shortly," he said.
|
|
Contracts with so-called restrictive covenants are now common in medicine, although some states limit their use.
|
|
"They were trying to be legalistic about it," said Gregory, who has mapped racial covenants in Seattle.
|
|
Then in 1948, following activism from black Americans, the US Supreme Court unanimously ruled these covenants unenforceable.
|
|
Valeant offered to pay higher interest payments in order for one of the covenants to be loosened.
|
|
Recent measures taken by the company included a renegotiation of two debt covenants and a board change.
|
|
The first thing we do is decide if we like the credit, then we go into the covenants.
|
|
There are no significant debt maturities until 2018, and compliance with financial maintenance covenants is not a concern.
|
|
The most important covenants often relate to the period after ownership, or "post-term" as it is known.
|
|
The amount of loans without covenants in the US has already reached more than US$90bn this year.
|
|
Chapman rejected that argument, although she said her finding on the covenants was non-binding for procedural reasons.
|
|
Diamond includes the standard story of restrictive covenants, blockbusting, freeway and public housing construction and other exclusionary techniques.
|
|
Rcom has breached some debt covenants, and hence has limited ability to raise further debt to improve liquidity.
|
|
The FMNs, which carry a modest coupon but contain restrictive covenants, become callable at 0540 in March 2017.
|
|
The bonds will benefit from negative pledge and change of control clauses but not from any financial covenants.
|
|
A report from MUFG said the commodity company was seeking to ease leverage covenants on its bank loans.
|
|
Also, some financial covenants are less stringent given the option to include disposal proceeds in the DSCR calculation.
|
|
Passover is a time for Jews to acknowledge their shared roots and their covenants of fate and destiny.
|
|
NuevaTel has sufficient cushion within its financial covenants and is subject to a profits test for dividend distributions.
|
|
In return, additional covenants would be put in place to allow banks to monitor the company's financial situation better.
|
|
Fitch believes the exchange and removal of restrictive covenants of the 2019 notes will not affect surviving 2019 bondholders.
|
|
The proposed 20163 notes will include all the restrictive covenants Jababeka is seeking to remove from the 2019 notes.
|
|
Until then, corporate loans had many covenants offering safeguards for lenders if the debtor's financial position were to deteriorate.
|
|
Less mature markets, oddly, are starting to look safer: taking no chances, funds lending there insist on robust covenants.
|
|
The wave of minimum liquidity covenants comes after some oil and gas companies maxed out their existing credit lines.
|
|
Tesco has a well-diversified debt maturity profile, and its senior unsecured debt is not subject to financial covenants.
|
|
Headroom over balance sheet covenants is solid (eg, gearing was 1.6x at end-1H13 versus a covenant of 3.75x).
|
|
The credit facility has no ratings triggers or other restrictive financial covenants, such as leverage or interest coverage tests.
|
|
She said black and white churches had formed partnerships, called covenants, in Dallas; Macon, Ga.; St. Louis; Birmingham, Ala.
|
|
The deal's covenants were also amended, with a 10% call at 103 and portability clauses removed from the documents.
|
|
"All of our covenants are linked to filings in Brazil," said Eletrobras Chief Financial Officer Armando Casado de Araújo.
|
|
And for nearly 50 years, developers and realtors wrote racial covenants into the deeds of millions of new homes.
|
|
That is because these bonds carry covenants aimed at preventing an issuer from favoring one bond holder over another.
|
|
He added that the company's debt covenants have no clauses requiring an early repayment in case of a delisting.
|
|
Mr. Trump has promised to rethink or simply reject these hard-won and, in some cases, decades-old covenants.
|
|
The main covenants includes a senior leverage ratio of not greater than 3 times(x)(1.6x as of Dec.
|
|
The absence of financial covenants strips away lender protections and allows companies, and sponsors, more control in deteriorating financial situations.
|
|
The lenders want to maintain covenants, including a leverage covenant, but amend the levels based on any new business plan.
|
|
White residents weren't able to uphold the restrictive housing covenants and wanted the court to help them enforce the deeds.
|
|
Moody's notes that investor protection, as measured through the strength of bond covenants, continues to hover around its weakest levels.
|
|
That's why it is critical to negotiate restricted covenants related to the "post-term" period before signing a franchise agreement.
|
|
Elsewhere, Dick Smith shares were halted from trade pending an announcement on the company's funding position and debt financing covenants.
|
|
But even after extensive changes to the covenants, and a widening of price talk to 7%-7.25%, demand proved elusive.
|
|
Additionally, Global Cloud Xchange (GCX) - Rcom's 100% owned sub-sea cable business - has covenants restricting upstreaming of cash to Rcom.
|
|
Leads have also made significant document changes on both the bond and loan, to assuage investor concerns around loose covenants.
|
|
"No bondholder in their right mind would ever vote to have their covenants stripped like that," said one note owner.
|
|
By themselves, "covenants" (here, diplomatic agreements) can never adequately safeguard Israel, at least in strategic matters of openly existential consequence.
|
|
Other leverage-dependent covenants were amended to cut the level of debt the company will be allowed to take on.
|
|
Sasol said was also in talks with its lenders to make sure it has "adequate flexibility" on its debt covenants.
|
|
Investors have been concerned about Aspen's debt in the last two years after levels moved close to breaching debt covenants.
|
|
Investors have been concerned about Aspen's rising debt in the last year after levels moved close to breaching debt covenants.
|
|
Mr. Nichols, a developer who died in 1950, used racially restrictive covenants to prevent nonwhites from living in certain neighborhoods.
|
|
And wealthy neighborhoods took to implementing "restrictive covenants" that banned people of different races and lower incomes from moving in.
|
|
And finally, Tesla said it was in "material compliance with all financial debt covenants" by the end of the quarter.
|
|
The company's later assurance that it expects to meet all debt covenants at the end of the year cued the bounce.
|
|
Shareholders on Friday approved a funding plan agreed with creditors in March after the company had warned it might breach covenants.
|
|
Elis and Faurecia's trades came with high-yield-lite documentation, after both previously issued deals with fully fledged high-yield covenants.
|
|
Many of the things a franchisee can and cannot do, during ownership and after ownership ends, is covered under restricted covenants.
|
|
Fitch believes that the exchange and removal of restrictive covenants of the 20153 notes will not materially impact surviving 2019 bondholders.
|
|
Promises, covenants and oaths, which are the bonds of human society, can have no hold upon or sanctity for an atheist.
|
|
These covenants were very common in the mid-20th century, until the Supreme Court ruled that they were not legally enforceable.
|
|
Onshore creditors have no contractual protection from a change of control, as covenants remain extremely rare in China's vast domestic market.
|
|
The American Medical Association, which represents doctors, doesn't oppose restrictive covenants outright, although its policy notes they can limit patients' choices.
|
|
Amid declining revenues, borrowers could face difficulties complying with financial covenants in their debt documents and in possibly servicing their debt.
|
|
Some involved explicit discrimination, including racial redlining in federal mortgage insurance, and real estate covenants that restricted home buyers by race.
|
|
And you can borrow low rates with very little in the way of restrictions-- restrictive covenants or anything of the sort.
|
|
In the previous quarter, a $146 million impairment brought the company close to breaching its debt covenants as its liquidity shrank.
|
|
The proposal comes as Sears risks breaching its debt covenants and faces a significant payment of $134 million on Oct. 15.
|
|
Another, more recent technique, takes advantage of the fact that in recent years a lot of debt was issued without covenants.
|
|
Covenants, or protections for investors in bonds, particularly high-yield junk, are close to record lows, according to Moody's Investors Services.
|
|
A second investor said the primary issue was the company's weak prospects for cashflow generation and leverage level, rather than the covenants.
|
|
" The neighbors' lawsuit, which was obtained by PEOPLE, claims the fence is out of compliance with the subdivision's declaration of covenants. "Mr.
|
|
He said Zodiac had added "an extra layer of caution" to its forecasts and would be able to meet its financial covenants.
|
|
The majority has change of control puts and of these, several, including the credit agreement that matures in 2019, have leverage covenants.
|
|
Racial housing covenants often segregated people of color into areas that had the most factories, oil refineries, heavy industry, and so forth.
|
|
As a result, the company breaches its debt covenants and the venture debt provider pulls the facility and calls in the security.
|
|
Competition for deals has crushed margins and caused a decline in "covenants"—clauses requiring borrowers to keep overall debt levels under control.
|
|
Covenant Review argued in a report published on Thursday that the New York court "fundamentally misunderstands" the senior secured bonds' covenants, however.
|
|
Racially restrictive covenants were legally enforceable agreements among property owners to keep homes from being sold to members of various minority groups.
|
|
As far as specific threats from the lack of covenants, Moody's mentions collateral control, guarantees and lien priority as the biggest issues.
|
|
The debt structure covenants minimum annual capex maintenance expenditure of EUR25 million, which reduces as the concessions' remaining life approaches 10 years.
|
|
Government at all levels embraced racial covenants that forbade even well-to-do African-Americans from purchasing homes outside of black communities.
|
|
But others, including those whose forebears were targeted by racial covenants, say it's time for the insidious language to vanish for good.
|
|
Institutional investors have been especially active in leveraged financings in recent years, allowing financial sponsors to fund acquisitions with less restrictive covenants.
|
|
The Regime of Covenants acknowledges the fact that we don't really choose our most important attachments the way you choose a toaster.
|
|
In the Regime of Covenants, making the right one-time selection is less important than the ongoing action to serve the relationship.
|
|
Restrictive hiring and housing covenants confined Black people to ghettos and tenements, and often left Black men unable to find steady employment.
|
|
Homeowners in aging subdivisions brave disapproval as they try to update association covenants, to brighten obsolete dark palettes while maintaining visual cohesiveness.
|
|
Despite a forecasted decline in EBITDA, Fitch expects the company to remain in compliance with the financial maintenance covenants through the projection period.
|
|
Banks are also relaxing covenants that could have allowed lower classes of lenders to throw borrowers into default and suddenly trigger repayment requirements.
|
|
Principal financial covenants in Windstream's secured credit facilities require a minimum interest coverage ratio of 2.75x and a maximum leverage ratio of 4.5x.
|
|
Another investor said the covenants did not affect his fund's decision, given the small amount purchased and a rare juicy yield on offer.
|
|
Fitch expects this growth to translate into higher EBITDA recognition, which materially reduces the risk of Modernland breaching its local-currency debt covenants.
|
|
In December, Carillion said discussions with stakeholders about its options to cut debt and avoid a breach of debt covenants were "progressing well".
|
|
While the company adopted dual headquarters and asserted it was keeping its Pittsburgh covenants, locals perceived a hollowing out and migration to Chicago.
|
|
MW: Different lenders take different approaches, some with hidden covenants and clauses, but I'd say it's their law firm's job to advise them.
|
|
Despite these cases, the sheer amount of cash chasing yield in the market today suggests that a return to stronger covenants is unlikely.
|
|
Mobily added it was in "an advanced stage of negotiations" with the rest of its lenders about resetting covenants on its debt pile.
|
|
The losses led to a breach of its debt covenants and the firm reported a steeper-than-expected loss for the first-half.
|
|
"OHL currently has well over 1bn in Restricted Payments build-up basket capacity under the covenants for its outstanding bonds," the report said.
|
|
Covenant Review garnered widespread attention earlier this year by launching a campaign against issuer-friendly structures with a report entitled "War On Covenants".
|
|
The construction and support services provider said it needed to delay its financial covenants dates until April 30 and was talking to stakeholders.
|
|
It has about $9.7 billion in total net debt and warned it may breach covenants if commodity prices do not rebound next year.
|
|
Principal financial covenants in Windstream's secured credit facilities require a minimum interest coverage ratio of 2.75x and a maximum leverage ratio of 103x.
|
|
The change in appointment date comes after the company said it was heading towards a breach of debt covenants and needed fresh capital.
|
|
Investor protections known as covenants have been around all-time lows, meaning that some buyers could see big losses in event of defaults.
|
|
So, Shoenfeld and others began searching for the covenants, mapping them, hoping to raise awareness of the racist practices that shaped their city.
|
|
These loans tend to have limited covenants, are not secured by specific working capital assets and are junior to the working capital loans.
|
|
The programme includes a negative pledge provision that is binding on Indonesia, as well as financial reporting obligations, covenants and default acceleration terms.
|
|
The deal has few covenants and is similar to riskier US leveraged loans that private equity sponsors typically offer to U.S. institutional investors.
|
|
It was incremental to a €460m term loan B raised in July 2.83 to refinance existing debt following a technical breach of covenants.
|
|
Risk of severe financial stress should diminish as covenants are renegotiated and VRX pays down debt, and deleveraging should drive equity value accretion.
|
|
Covenants didn't let them live in many places, so they didn't really have any of the political power, economic resources the community has today.
|
|
"There is very strong overseas interest in purchasing U.K.property, particularly property in supply-constrained markets with long income and good covenants," the outlook stated.
|
|
Macy's will close another 30 or so locations over the next few years as leases or operating covenants expire, or sale transactions are completed.
|
|
When the Supreme Court ended the ordinance, industry leaders turned to racial deed covenants, which said white home buyers couldn't rent to Black people.
|
|
"This terrible language will vastly embolden issuers to consider breaching covenants and lead to more risk for bondholders and fewer premium redemptions," he wrote.
|
|
There was, instead, a long legacy of policy decisions (restrictive covenants, redlining) and informal norms that had created a stark pattern of residential segregation.
|
|
"We are unable to comment on the company's compliance of the covenants in respect of all borrowings and (the) consequential implications," the auditors said.
|
|
But it has now missed debt payments, breached loan covenants, all but two directors have quit its board and a key executive is missing.
|
|
The company plans to operate at leverage within the parameters of its bank covenants; gross debt/last quarter annualised EBITDA of less than 2110x.
|
|
The programme documentation contains a negative pledge provision, cross-default, as well as covenants, which are the same as those in Indosat's bond document.
|
|
"We have never seen weaker loan covenants," said Derek Gluckman, senior covenant officer for Moody's Investor Services, which provides credit ratings for leveraged loans.
|
|
Warning it may breach its financial covenants, Murray Goulburn was forced to solicit takeover approaches last year, with Saputo beating out several international competitors.
|
|
Zodiac said on Wednesday the number of seats affected by delays had not worsened and reassured investors its banking covenants would not be affected.
|
|
MGM China Holdings last week asked lenders to waive the leverage covenants on a HK$22003bn (US$4.7.3bn) loan for the next 24.25 months.
|
|
However, the outstanding USD13m of notes issued by IHS Towers Netherlands FinCo NG B.V. following the successful tender offer have had their covenants removed.
|
|
"For a normal non-cyclical credit we are not going to go back to covenants and restrictive terms and conditions," the first banker said.
|
|
The National Association of Financial Market Institutional Investors, the main corporate bond regulator in the interbank market, officially introduced bond covenants in early September.
|
|
Adding "material" to that sentence (as opposed to flat-out saying it is "in compliance with all financial debt covenants") means something is amiss.
|
|
If covenants are breached, it's likely that a lender will immediately call in the security they have in place in order to recover their funds.
|
|
"There is a bit of a stretch with regards to [credit] quality, covenants and protections," said James Keenan, global head of fundamental credit at BlackRock.
|
|
One of the energy companies hardest-hit by so-called minimum liquidity covenants is Chesapeake Energy Corp, according to a Reuters review of regulatory filings.
|
|
When they moved our small family from Harlem to a predominantly white suburb, there they met Jim Crow: red-lining, restrictive covenants and recalcitrant neighbors.
|
|
Noble, which has got waivers from other banks on loan covenants in the last few months, has debt due in the next year as well.
|
|
It said it would defer the test date for meeting its financial covenants with lenders until April 30 next year and was talking to stakeholders.
|
|
It is standard practice for corporate borrowers to pledge to pay compensation for deal delays, in covenants known as "special mandatory redemption" provisions or SMRs.
|
|
The injustices of housing bias linger to this day Finally, two decades later -- in 1968 -- the federal Fair Housing Act finally outlawed these covenants altogether.
|
|
However, the company said it does not anticipate any issues with its debt covenants, adding that it maintains a "constructive relationship" with its lender-banks.
|
|
"Following 31 December 2019, there has been no change in AAA that would result in a material change that would impact the covenants," Norwegian said.
|
|
He married a white woman, Mabel Bridge, and was able to purchase property in Los Angeles areas where racist covenants kept obviously black Angelinos out.
|
|
It is similarly looking to loosen debt incurrence covenants to allow the company to increase consolidated net leverage as high as 5.25x until August 11.
|
|
They had risen as much as 5 percent, after the company's lenders agreed to an amendment to loosen covenants on its $31 billion of debt.
|
|
Mr. Lee does not work for the association, but he has done volunteer work for an umbrella organization to which it belongs, called Covenants Watch.
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That is, just before you exchange into the new debt, you agree to, say, strip all the really important covenants out of the old debt.
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And bondholders who want real protection from that need to think about getting that protection in the form of real covenants in the bond indenture.
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And on Wednesday, the company, which is over $230 billion in debt, has to come to an agreement with lenders to relax its debt covenants.
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Further reducing debt, after the company refinanced $1.87 billion, is key for freeing Citgo from debt covenants currently stopping it from paying dividends, according to analysts.
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Those who also agree to eliminate virtually all the covenants - and waive any claims on a default - will pocket an additional 6.5 cents on the dollar.
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"In the current trading environment ... nervousness around debt levels are likely to remain – covenants could be tested if tour profits fell to zero," Investec analysts said.
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McDaniel's case set a precedent that would later help the Supreme Court rule it unconstitutional for the courts to enforce restrictive housing covenants in Shelley v.
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Covenant Review, an independent research firm, warned that breaching indentures without having to pay a make-whole premium in effect marked "the end of bond covenants".
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In March the airline had to raise fresh capital, sell some aircraft and put its frequent-flyer scheme up for sale to avoid breaching banking covenants.
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The city's inability to meet its loan covenants is "indicative of the city's severe fiscal distress," Moody's Investors Service analyst Doug Goldmacher said in a commentary.
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However, Fitch will closely monitor Future Land's operations, funding access and its status in relation to debt covenants to determine if negative rating action should follow.
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The removal of covenants, particularly leverage, and the size of the equity cheque remain the main points of contention for lenders, one of the sources said.
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Tight pricing is coupled with looser terms, sources said, adding that lenders are willing to offer flexibility to extend loans and fewer covenants for Brazilian credits.
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So far, few companies have executed J. Crew-like asset transfers, but the flexibility to do it is now baked into more and more loan covenants.
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Fitch forecasts this may lead to Modernland breaching a number of its local-currency debt covenants in 2017, as EBITDA declines following the weakness in presales.
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Analysts expect banks to continue to kick the can down the road by offering grace periods, exercising flexibility when loan covenants arise and postponing principal payments.
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For one thing, the upside potential for outside investors is damped by covenants between Fortress and its offshoots that favor Fortress with equity awards over time.
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Banks closely monitor the performance of Trafigura's assets as its debts stand at $33 billion and assets serve as the key metric in lenders' debt covenants.
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No change or waiver of the terms, covenants and provisions of this agreement will be valid unless made in writing and signed by the undersigned. Relationship.
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Traditionally, such loan contracts would have all sorts of protections, known as covenants, aimed at providing investors an early warning that borrowers were getting in trouble.
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A manager at Wenshan Community College in Taiwan's capital, Taipei, Mr. Lee volunteered for a rights organization called Covenants Watch and often traveled to the mainland.
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That pushed Sabesp's debt load up almost 50 percent to 13 billion reais ($4 billion) between 2013 and 2015, taking Sabesp close to breaching lending covenants.
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If covenants are broken, this could in turn lead to another round of debt and equity restructuring, but the company sought to dispel any such worries.
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"If I'm underwriting a deal today, I'm going to have covenants on anything with some cyclicality or a small deal," a second senior investment banker said.
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Fitch forecasts this may lead to Modernland breaching a number of its local-currency debt covenants in 653, as EBITDA declines following the weakness in presales.
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The senior secured credit facilities will have customary negative covenants and a maximum net leverage test of 4.25x with a step-down to 3.75x on Dec.
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The unexpected fall in oil prices has rattled investors who were already concerned about the company's high debt after it renegotiated some debt covenants last November.
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But covenants on its existing bonds meant it only had 35m of cash available for servicing the PIK, which would have only covered one coupon payment.
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Most recently the bank slapped an overweight rating on Valeant based solely on the fact that it might get its covenants renegotiated and pay down debt.
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Chesapeake said two of its covenants had been relaxed under the latest agreement and the next review of its borrowing base had been postponed until June 2017.
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In March, Fletcher said lenders had extended waivers for breaches of its financial covenants until the end of May as the company sought to renegotiate its agreements.
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Carillion issued its third profit warning in five months in November and said it was heading towards a breach of debt covenants and would need fresh capital.
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Greek dry bulk group Globus Maritime reached agreement with two of its banks on waivers to loan covenants as well as deferring loan payments due this year.
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INDOORS: The two-story clapboard house was built in the 1780s and is protected under covenants with Historic New England, a nonprofit group in operation since 4763.
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Without covenants regularly testing specific financial measures, investors do not have as much day-to-day clarity into the finances of the companies they are lending to.
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These days most loans have few, if any, "covenants" that would require borrowers to meet specified financial conditions in order to protect lenders if things go wrong.
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Despite the forecasted decline in EBITDA in the ratings case, Fitch expects the company to remain in compliance with the financial maintenance covenants through the projection period.
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As a signatory to the documents, China has little choice but to parrot their language, even though it often shows little regard for what the covenants mean.
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Instead of the Treasury getting settlement money, DOJ asked corporate wrongdoers to "voluntarily" provide massive checks to their friends without covenants on how they spent the money.
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And yet everyone relies on systems like government and the police and religion to negotiate with violence on their behalf, to protect them with covenants like citizenship.
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Like other RBI firms, Decathlon does not require warrants, governance involvement, or the types of financial covenants that are often associated with other venture debt type solutions.
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GCX's cash flow is ringfenced and dividends to Rcom are subject to an incurrence test of debt/EBITDA of below 3.75x (FY17: 3.00x) and restricted payment covenants.
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Leveraged loans, unregulated by the Securities & Exchange Commission, are governed by covenants that stipulate what provisions — if any — borrowers must follow to preserve the interests of lenders.
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Institutional investors have pushed back by demanding greater liquidity covenants, said Mark Taylor, a portfolio manager and head of high-yield research at Alpine Woods Capital Investors.
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Additional strengths include the CEA's stable pledged revenue and performance on debt service covenants that result in part from its highly profitable operations and significant market share.
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Mr. Lee worked as a manager at a community college in Taipei and was a volunteer for Covenants Watch, an alliance of human rights organizations in Taiwan.
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CFO Smith warned investors in August that the company was at risk of breaching its debt covenants at the time because its leverage ratio was getting too high.
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Denbury Resources, for example, was recently forced to amend its exchange offer after particularly loose covenants on the incurrence of secured debt attracted strong criticism from the buyside.
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Last year, Gulf Marine said contracts were delayed into 2019 as the company was seen to be in breach of certain banking covenants at the end of 2018.
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The company said it was still in talks with its banks and individual lenders with hopes of getting a waiver or an agreement to amend the concerned covenants.
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Their finances may be fragile: Christopher Whalen, an analyst, reckons more than half have "blown through their bank credit covenants due to impaired capital, poor profitability or both".
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Too much demand for too few high-yielding loans has allowed issuers to pile up debt without covenants that would protect recoveries in the event of a downturn.
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Nor was it clear that these supposed agreements between the faithful and their churches—sometimes called "covenants," implying a promise to God—would necessarily hold up in court.
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Investors worry that the lack of information is making investment decisions more challenging and could exacerbate any downward turn in a business with no covenants to protect them.
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Fitch does not expect Future Land's shareholding structure to change, and therefore the change-of-control covenants for its various offshore bonds are not likely to be triggered.
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It added that as of March 31 one of the group's entities, which it didn't identify, had not complied with certain financial covenants on a 102.2 million loan.
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"It is very challenging with new margins at 300bp, no covenants, high leverage, loose documents and adjusted Ebitda that are frankly bordering on fantasy," the senior banker said.
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But the rise of covenant-loose has raised questions that the maintenance covenants direct lenders are securing on deals lack the security investors in private debt funds crave.
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GCX's cash flows are ring-fenced and dividends to Rcom are subject to an incurrence test of debt/EBITDA of below 3.75x (FY0003: 3.0x) and restricted payment covenants.
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It has had to repeatedly inject equity into Takko after its bid to sell more expensive clothes failed and the firm came close to breaching its debt covenants.
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At some price the access to capital offered by non-banks, at more flexible terms with less restrictive covenants, is a deal borrowers will be willing to cut.
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Additionally, Feenix typically needs fewer financial covenants and can provide quicker turnaround for due diligence with the benefit of transparency they receive by tracking credit card sales activity.
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It will start working with banks next week it said as it trips debt covenants by missing a filing deadline with regulators of today for its annual report.
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Glencore has no debt covenants and continues to retain strong lines of credit and secure access to funding, thanks to long-term relationships we have with the banks.
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The covenants attached to the notes also impose certain restrictions on the additional debt that WTT can assume, based on a net debt to EBITDA threshold of 3371852x.
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"This deal with loose covenants and Apollo as the private equity [sponsor] should be concerning to people," said one portfolio manager who did not participate in the trade.
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In the worst-case scenario, the borrowing ceiling is slashed below the outstanding balance, and the company can't make interest payments, triggering bond covenants that lead to bankruptcy.
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Its liberal use of capital punishment appears to violate international covenants, which Iraq has signed, that reserve the death penalty for only the most serious crimes, like murder.
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The sandwich maker Jimmy John's notoriously used covenants not to compete to block its workers from quitting to work for a competitor — which most likely held down wages.
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Due to racially restrictive covenants, which restricted land use and purchase in the northern and southern neighborhoods of the city, many Black families rooted in the Central District.
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"If investors do not rapidly start rejecting these deals, it is the beginning of the end of bond covenants," the company's founder, Adam Cohen, wrote in the note.
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But that drop has accelerated in recent weeks, and strong pizza sales are needed to help keep Papa John's in compliance with its debt covenants, more or less.
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The CBB13 sukuk includes a negative pledge provision that is binding on the Bahraini government, as well as financial reporting obligations, covenants and Bahrain event and default acceleration terms.
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They instituted all sorts of barriers — such as restrictive covenants, redlining, blockbusting, and steering — that, along with public housing policies, pushed mostly black residents into impoverished, crime-ridden neighborhoods.
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For producers struggling to meet debt payments and avoid breaching the terms of loan covenants, rising prices are a chance to lock in future revenue and reduce downside risks.
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Anglian Water's financing structure benefits from structural enhancements, including trigger mechanisms (such as dividend lock-up provisions tied to financial, positive and negative covenants) and debt service reserve liquidity.
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The company had no outstanding borrowings on its revolving credit facility, and was in compliance with all the financial covenants associated with its revolving credit facility and loan agreement.
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With oil prices down more than 30 percent at the end of 2015, companies are tripping covenants on their debt and, in many cases, are being forced to default.
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The covenants attached to the proposed notes also impose certain restrictions on the additional debt that WTT can assume, based on a net debt to EBITDA threshold of 212000x.
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"In larger deals there are no covenants, but if they're looking for some sort of guardrail then covenant-loose has been a compromise," said Stephen Boyko, partner at Proskauer.
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N at a lower price than it had previously offered, after raising concerns about the accuracy of various representations, warranties and covenants made by Alere in the earlier agreement.
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British builder Carillion issued its third profit warning of the year on Friday, saying it was at risk of breaching year-end financial covenants and would need to recapitalise.
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However, the company said in June it was in compliance with all of its financial covenants and removed the going-concern note included in the first-quarter financial statements.
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Because they are based on many factors, credit ratings alone may not reflect the quality of covenants, so some investors may be taking on greater risks than they realize.
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The covenants attached to the proposed notes also impose certain restrictions on the additional debt that WTT can assume, based on a net debt to EBITDA threshold of 21500x.
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But global demand for yield remains so high, that unless tighter regulation is imposed, the leveraged loan market will keep growing and covenants keep loosening, analysts and investors said.
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The neighborhoods labeled "opportunity zones" are "distressed" because of forced racial segregation backed by federal law — redlining, racial covenants, racist zoning policies and when necessary, bombs and mob violence.
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In the 73s, following a Supreme Court decision that restricted the scope of racial covenants, an African-American veteran bought a house in a second Levitt development outside Philadelphia.
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The company said it received a waiver from banks relating to one of the financial covenants in its revolving credit facility and borrowing-base facility for the past quarter.
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"Without the proposed amendments, the issuers would need to refinance the notes with new bonds containing looser covenants in order for the dividend to be permitted," their report said.
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The Indonesian company had won consent from at least two thirds of its existing lenders, who agreed to waive a couple of financial covenants until March 2016, IFR added.
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In seeking to preserve what Ruth Glass called the "social character" of a neighborhood, anti-gentrification activists echo the language that was once used to defend racially restrictive covenants.
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The projected loss has resulted in a breach of Fletcher's financial covenants given to its commercial banking syndicate and U.S. private placement noteholders, the company said in a statement.
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"That's why NAFMII adopted bond covenants loosely: acceleration in bond payment and a concentration of defaults could lead to a market crash," said a Beijing-based senior credit analyst.
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"In order to successfully operate its shopping centers, Simon depends upon each tenant fulfilling the covenants in their respective leases," the company said in the lawsuit, according to IBJ.
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TO is offering to pay lenders a higher interest rate in order to obtain an amendment to its debt agreement that would loosen one of its covenants, according to sources.
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Kantar was also forced to hike pricing on the loans and make covenants more investor-friendly across the entire financing in order to get its the deal over the line.
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The covenants ensure that companies draw down lines only if they truly need it for operational or capital expenditures, said Janice Fukakusa, chief financial officer at Royal Bank of Canada .
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The financial ratio covenants in the credit facility restrict net debt/operating cash flow to no more than 4x and operating cash flow/interest expense of no less than 2x.
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The covenants ensure that companies draw down lines only if they truly need it for operational or capital expenditures, said Janice Fukakusa, chief financial officer at Royal Bank of Canada.
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Moreover, a Moody's index tracking the strength of leveraged loan covenants is at its lowest level since the index launched in 2012 — including a substantial rise in cov-lite loans.
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The accounting change resulted in a technical breach of debt covenants but lender Export Development Canada provided a waiver and would not take action, finance director Fuad Rizal told reporters.
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Wynn Macau covenants exclude the unsecured notes issued by the Hong Kong-listed Wynn Macau, Ltd and Fitch expects the covenant ratio to remain below 4x throughout Fitch's projection horizon.
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The principal financial covenants limited total debt/adjusted EBITDA (as defined in the agreements) to no more than 6.0x (up to 7.0x for specified time periods following a qualified acquisition).
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The programme includes a negative pledge provision that is binding on the Pakistan government, as well as financial reporting obligations, covenants, government event and cross acceleration terms with external indebtedness.
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High-yield bonds place strict limitations on what borrowers can do with their money, through a series of covenants and terms investors usually require to lend money to riskier companies.
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The sum received for the change was in line with the city's approach to valuing protective covenants at a quarter of a property's total appraised value, Mr. de Blasio said.
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Meanwhile plentiful liquidity has led to weakening covenants—clauses that require borrowers to keep overall debt levels under control—making it harder for funds to force floundering firms into bankruptcy.
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The principal financial covenants limited total debt/adjusted EBITDA (as defined in the agreements) to no more than 0003x (up to 7.0x for specified time periods following a qualified acquisition).
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Banks are no longer put-off by a lack of covenants and are happy to invest in covenant-lite term loans if it means taking big yields on big tickets.
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Evergrande, China's most indebted developer, seeks to amend some covenants on four notes due in 21 to 103 that will allow for the issuance of new capital to strategic investors.
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"With all of the new loopholes being inserted in high-yield bond deals recently, it seems that law firms are intensifying their war on covenants," Covenant Review said on Tuesday.
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Small-cap Gulf Marine Services plunged 74.7 percent after the support vessels maker said it expects to be in breach of some banking covenants at the end of this year.
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Fiat Chrysler Automobiles announced on Tuesday that it has eliminated covenants linked to term loans of its U.S. unit, FCA US LLC, thus gaining full access to the subsidiary's cash.
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And this god's dilemma, the way he has enslaved himself, as he tells Brünnhilde, by finagling with covenants he is supposed to enforce, came through achingly during this heartbreaking scene.
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As urbanization brought blacks and whites closer together, white communities reacted with racially restrictive covenants, aiming to keep blacks and their perceived threat to property values out of white neighborhoods.
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The Supreme Court ruled such covenants unenforceable in 1948, but they had long-lasting effects on how homeowners looked at the world around them, and the need to control it.
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The bank last month asked the holders of its 2021 and 2022 Eurobonds to waive covenants restricting it from paying out more than 50% of its net profit in dividends.
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Similarly, Kongo minkisi, nail-studded sculptures used to seal covenants, hunt evildoers and heal the sick, were originally involved in the ritual lives of the powerful and of ordinary people.
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Chipmaker Broadcom, General Motors Financial and Brazilian pulp and paper company Fibria dropped the controversial language, which makes it easier for borrowers to breach covenants without offering compensation to investors.
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The court ordered Cash America to pay a make-whole premium to bondholders, because the sale of the majority of a wholly owned subsidiary violated covenants in its bond indenture.
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Quality Care also said it may not remain in compliance with certain covenants under its own loan agreements if it fails to receive a material portion of rents from ManorCare.
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Weak terms in loan documentation, fears over deteriorating covenants and mounting corporate leverage levels are also impacting spreads, which are coming in roughly 35bp-3003bp wider than a year ago.
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Fibria is one of several companies that have included new aggressive terms in bonds, making it easier for borrowers to breach covenants without offering compensation to investors, according to Covenant Review.
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"We're saying to the banks is...we really need a different way of calculating those covenants and that's really what we've got to work through between now and...March," he said.
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One area that often is overlooked when putting debt-based deals in place is the area of reporting and covenants (operational restrictions on running your business, like taking on other borrowings).
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The primary reason lenders look for this constant level of detailed reporting is to closely monitor the finances of the company — specifically, with regard to ensuring certain covenants are not breached.
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Rickmers said in a statement on Wednesday that it could not continue as a "going concern" due to its failure to meet some debt obligations and various breaches in loan covenants.
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Financial covenants for the credit agreement include maximum leverage of 6x stepping down to 4.75x and below beginning in 7503, minimum interest coverage, and limitations on non-guarantor restricted subsidiary indebtedness.
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BlackRock, another fund-management group, says there is "a more favourable environment for issuers at the expense of lenders", especially as the quality of the covenants protecting lenders has been deteriorating.
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Covenants on Agrokor's bonds meant it had to class the newly acquired business as an unrestricted subsidiary, so this debt would sit outside the so-called "restricted group" of its bonds.
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Opinion is also divided over the impact on loan covenants that companies have with banks, which are often based on a cap on balance sheets to avoid too much risk-taking.
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Covenants have largely fallen away in the European market, meaning investors are increasingly focused on a company's cash flows and their own stress models rather than traditional metrics like leverage levels.
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Positive: Future developments that may, individually or collectively, lead to the stabilisation of the Outlook to Stable include: - Reset of the RCF maintenance covenants removing the risk of a covenant breach.
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"Penn West continues to pursue multiple avenues to both reduce its absolute debt levels and to negotiate with its lenders to amend its financial covenants," Penn West spokesman Paul Surmanowicz said.
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"The only thing I would say that is concerning — there is some rhyming nature to the fact there are no covenants in deals anymore and structure doesn't matter anymore," he said.
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The company plans to operate at leverage below 5.5x, measured by gross debt/last quarter annualised EBITDA (end-2016: 5.1x); this is within the parameters of its bond covenants of 6.25x.
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NEW YORK, Aug 9 (Reuters) - Valeant Pharmaceuticals International's loans traded up Tuesday after the company's chief executive officer said it would seek to modify covenants on its $31 billion of debt.
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As the prevalence of those discriminatory housing covenants waned, the community that had made Central Avenue the locus of LA jazz began to seek opportunities elsewhere, and The Avenue fell silent.
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Virgin chief financial officer Keith Neate told reporters that there were no financial or change of control covenants on its bonds and that its next major debt maturity not until Oct.
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Virgin chief financial officer Keith Neate told reporters that there were no financial or change of control covenants on its bonds and that its next major debt maturity not until Oct.
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Restructuring and bankruptcy lawyers are working around-the-clock to field calls from clients about loan covenants, payment obligations to creditors, and — in some instances — the prospect of filing for bankruptcy.
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Yibee Huang, the chief executive of Covenants Watch, an alliance of human rights organizations in Taiwan, described a "chilling effect" on Facebook use by friends and associates since Mr. Lee's trial.
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"Given the other things that covenants did that continue to impact cities and people, I don't think that's where the energy and money should go in addressing this legacy," added Shoenfeld.
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" Yet these facts were kept secret from the American people, a form of deception that did not exactly vindicate Wilson's vision of a new world of "open covenants, openly arrived at.
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The bonds have so-called covenants linked to the finances of a key subsidiary, Arctic Aviation Assets (AAA), which must keep its book equity and debt levels within certain minimum levels.
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Although Papa John's is currently "comfortably within our debt covenants," the pessimistic sales forecast prompted executives to "proactively" open talks with its lenders, Chief Financial Officer Joseph Smith said this month.
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As is often the case, certain iHeart noteholders are being asked to remove the covenants from their old notes as they exchange those notes for new ones under the exchange offer.
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His parents, both light-skinned immigrants of mixed race, dodged landlords and immigration officials by changing the spelling of the family name, and avoided housing covenants by claiming to be Hispanic.
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That underscored the pressure on the builder as it negotiates with lenders over breaches of its financing covenants, which it announced last week when it requested a trading halt on it shares.
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Ezra Holdings, Rickmers Maritime, Otto Marine and Marco Polo Marine are just some of the companies that sought bondholder consent this year to loosen the conditions, or covenants, attached to their loans.
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Analysts say that while covenant-lite loans are not necessarily problematic while default rates are low, the lack of covenants could end up hurting investors in the event of a sharp downturn.
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The covenants enable banks, themselves facing increased regulatory scrutiny over exposure to highly leveraged energy companies, to limit risk without cutting credit lines, several oil and gas attorneys, executives and analysts said.
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The sukuk issuance includes a negative pledge provision that is binding on the Hong Kong government, as well as financial reporting obligations, covenants, government event and cross acceleration terms with external indebtedness.
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Premier Oil is struggling to complete a key refinancing that will amend its loan covenants and extend some maturities beyond 2017 as it grapples with the effects of the low oil price.
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To fix that roadblock, SoftBank issued a new set of bonds with better terms to buy back the bonds with the prohibitive covenants, undercutting and aggravating some investors of the initial bonds.
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New debt covenants and carve-outs provide for some leverage flexibility but we expect management to be committed to deleveraging below 3371530x net debt/EBITDA to allow the company to pay dividends.
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So squeamish is China about both covenants that it prefers to use its own, alternatively phrased, translations of them rather than the official Chinese-language versions approved by the UN in 1966.
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Builder Drake & Scull fell 1.4 percent after saying it had breached financial covenants in relation to a sukuk syndicated facility and other bank facilities in 2016 after having incurred losses last year.
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Covenants on two of the four bonds issued, which typically limit a company's ability to borrow in order to protect credit investors, were given the worst possible rating by Moody's Investors Service.
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Brownback co-sponsored a resolution condemning the government of Iran for its state-sponsored persecution of the Baha'i minority in Iran and its continued violation of the International Covenants on Human Rights.
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Penn West said in May that it may default on its financial covenants at the end of the second quarter and raised doubts about its ability to continue as a going concern.
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The documentation includes a negative pledge provision that is binding on Kuveyt Turk, as well as financial reporting obligations, covenants, Kuveyt Turk event (including cross default) and a change of control clause.
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Noah J. Goodman is an associate in the litigation and labor and employment practices at Ballard Spahr, where he advises employers on issues related to restrictive covenants, trade secrets, and unfair competition.
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Pub group Marston's dropped 7.9% as it said it was unlikely to recommend an interim dividend and was in discussions to have the option of having debt covenants waived later this year.
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In the temple, church members worship God and Jesus Christ by participating in ordinances (religious ceremonies) where we learn more about God's plan for us and make covenants (sacred promises) with God.
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Chief Financial Officer Les Wood said Tullow remained "comfortable" with its covenants with banks and the London-listed company said it had started a process to find a new group chief executive.
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Analysts have said Lonmin will probably come to the market soon for more cash as its liquidity shrank, bringing it closer to breaching debt covenants following a $146 million writedown in May.
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Brownback co-sponsored a resolution condemning the government of Iran for its state-sponsored persecution of the Baha'i minority in Iran and its continued violation of the International Covenants on Human Rights.
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Among individual stocks, mall operator Intu slumped 41.2% as it scrapped a planned equity raise and said there was a risk that it might breach some of its debt covenants this year.
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However, the stock soared because management announced plans to divest assets and indicated it would amend its debt covenants to avoid default triggers if EBITDA slips below the lower end of guidance.
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The notes initially included covenants that allow the company's restricted subsidiaries to make investments in its unrestricted subsidiaries, something which could have enabled Superior Industries, an autoparts manufacturer, to insulate assets from creditors.
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The recent shift highlights the turn in fortunes for a number of US producers that relied on cheap financing and loose covenants in the high-yield bond markets to turbo-charge their expansion.
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LONDON, Feb 26 (IFR) - More issuers could loosen covenants and come to the European high-yield market with "high-yield-lite" documentation, following in the footsteps of recent deals from Elis and Faurecia.
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That shows not only in low rates but also in the decline of covenants—eg, requiring borrowers to keep a certain capacity to absorb losses to protect lenders in the event of default.
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"The judge has ruled that the exchange is in breach of the secured notes' covenants, but there is no mention of this in Norske Skog's press release," said one high-yield fund manager.
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In the face of competitors to Suboxone, Indivior has put in place a contingency plan, which includes having a minimum cash balance of $250 million to remain in compliance with its debt covenants.
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As long as Moto remains compliant with the lock-up tests and maintenance covenants, and organic cash generation remains sound, the negative free cash-flow profile will not put pressure on the rating.
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NEW YORK (Reuters) - Corporate borrowers could face a liquidity crisis if lenders insist on tightening covenants as interest rates rise, Michael Vranos, who oversees $6.5 billion at Ellington Management Group, said on Wednesday.
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What follows is the rare confessional scene among numerous tales of fearsome, all-powerful fathers, when Wotan tells Brünnhilde the woeful story of how he has broken the covenants and mismanaged his life.
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Even businesses that don't have that kind of liquidity, Laukitis said, may be able to conduct debt exchanges to buy themselves some time, offering debtholders new securities with different covenants or longer maturities.
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Covenant-lite loans, which lack traditional covenants such as leveraged, interest, cashflow and capex ratios, dominate Europe's syndicated leveraged loan market and in some cases have even crept down into the middle market.
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Although, failing to meet revenue expectations from add-backs may cause borrowers to trip maintenance covenants, a more significant concern is the incremental debt or dividends that can result from an inflated Ebitda.
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"Further losses of milk flow may trigger an impairment to Murray Goulburn's assets that could breach banking covenants and result in potential withdrawal of creditors' support," it warned in its half-year results.
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The loan has a tenure of up to 10 years, an interest rate of 2.75% and contains no financial covenants in line with the rest of the Qantas debt book, the airline said.
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The company said the writedowns will not impact its dividends and credit covenants, adding that it has begun revising its 13-2020 strategy to significantly reduce capital needs in the short and medium term.
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Weak loan covenants currently give borrowers the freedom to add a wide range of supplemental debt, which will push the leverage on most buyouts to around 7.0 times or higher if added, bankers said.
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When the courts stopped them from using those covenants, they created residential security maps, which allowed lenders to deny Black people mortgages on the basis of "undesirability" or other less overtly racist-sounding euphemisms.
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The builder did not provide any new details in its earnings update over the losses and reiterated that it was negotiating with lenders to rework financing covenants that would be breached by the losses.
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"Poorly performing investment grade bonds and weakened speculative grade covenants have focused investors' minds on the corporate sector as a source of recession risk," Credit Suisse economists wrote in a research report this week.
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In its quarterly results statement, however, Reliance Communications said that "pending formal confirmation by the lenders for waiver of certain loan covenants", some loan amounts would continue to be classified as non-current liabilities.
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"The company has obtained an extension on a waiver in relation to the financial covenants in its committed unsecured revolving credit facility to 33 May, 2018," Noble said in a written statement on Thursday.
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Some energy-sector loans will not come due for years — after an anticipated oil price recovery — while others include covenants that could turn the screws on already battered balance sheets in the nearer term.
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Analysts said the decline would not result in a breach of debt covenants, but a stock that closes below $1 for 30 consecutive days can trigger a Nasdaq deficiency notice, potentially leading to delisting.
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"The notes are being marketed with extremely defective sponsor-style covenants riddled with flaws and loopholes that reflect the worst excesses of covenant erosion over the last two years," research from the firm said.
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Mr. Krueger and Eric Posner of the University of Chicago write that the government could stop companies from forcing low-pay workers to sign noncompete covenants, which bar them from better-paid jobs elsewhere.
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It was bewildering to me as a child that when we were looking for our first home (in Union, N.J.), there were covenants that restricted which streets we could or could not live on.
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The size of Salt's planned dividend and additional leverage from the debt raise would breach covenants on its existing bonds, so the company is offering to pay bondholders to temporarily reset these thresholds wider.
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Healthcare company Vizient also added a senior secured leverage ratio covenant to a US$1.475bn leveraged loan that supports its acquisition of MedAssets' clinical resource management unit after initially offering the deal without covenants.
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So the term loan lenders will be also noteholders for a nanosecond, and during that time they will help tip the noteholder vote in favor of the exchange offer and stripping out the covenants.
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In the meantime, Musk assured Rive that he would "have [him] covered" with respect to cash needs until the acquisition closed as SolarCity "was running crazy close" to its liquidity covenants, the documents said.
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In the meantime, Musk assured Rive that he would "have [him] covered" with respect to cash needs until the acquisition closed as SolarCity "was running crazy close" to its liquidity covenants, the documents said.
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The PIK has new covenants allowing the issuer to incur additional debt if its loan-to-value ratio is less than 1:2.5, along with a "combined coverage ratio" of at least 2:1.
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Reuters, citing sources, reported earlier this week that Valeant is offering to pay lenders a higher interest rate in order to obtain an amendment to its debt agreement that would loosen one of its covenants.
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It uses the stricter "pay if you can" structure but covenants on Verallia's existing bonds mean it only has 35m of cash available for servicing the PIK, which will likely only cover one coupon payment.
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A source close to the deal said he was confident coupons will be paid in cash, however, as Verallia's high cash flow generation will quickly build up capacity under existing covenants to service the PIK.
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"It will continue to be busy, but the question is whether loosening covenants will be adequate to give these companies the lifeline that they need," said Kevin Wong, Singapore-based partner with law firm Linklaters.
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This can be done by loosening leverage and asset sale covenants, or manipulating Ebitda figures higher, and is commonly referred to as the "J Crew trapdoor" after the US clothing retailer first used the clause.
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Others were maintained with genteel discretion, even after the Supreme Court in 1948 abolished covenants that bound white property owners to rent or sell within their race (sometimes they were also told to shun Jews).
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And even that gets confusing, as some covenants are transparent and discussed up-front, while others are of the sneaky-hidden type, such as sudden amortization triggers, material adverse change (MAC) or "investor abandonment" clauses.
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Haig estimates there is a three- to six-month lag between early reports of companies becoming financially over-stretched and insolvency problems, such as breaches of financial covenants, that draw the attention of insolvency practitioners.
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TBI had indicated its plans to operate at a leverage within the parameters of its bond covenants, which is the ratio of hedged gross debt/EBITDA (last quarter annualised) of less than 71.3x (2015: 5.3x).
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Structural features are weak because of the non-orphan SPV structure, limited contractual provisions, an inadequate liquidity reserve (covering about four months of class A debt service), in addition to the lack of financial covenants.
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A US$775m loan for Brazilian data center Ascenty last October, which backed a US$1.8bn buyout by Digital Realty and Brookfield Infrastructure, had few covenants and a similar structure to riskier US leveraged loans.
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Leading stocks was South African drugmaker Aspen Pharmacare Holdings Ltd, which gained 10.97% to 94.25 rand after it lowered its full-year debt, which had concerned investors as levels moved close to breaching debt covenants.
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ABG Sundal Collier also cut its rating on the stock, from hold to sell, saying the firm was low on cash and in danger of breaching its loan covenants in the second quarter of 703.
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ABG Sundal Collier also cut its rating on the stock, from hold to sell, saying the firm was low on cash and in danger of breaching its loan covenants in the second quarter of 21.30.
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The company also said at the time it would close 34 more stores "over the next few years" as leases or operating covenants expired or as sale transactions were completed (making 100 closures in total).
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Brough said a compromise had to be reached between Noble and its creditors and the company expects another extension of a waiver on some loan covenants that had already been extended twice till mid-December.
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Holders of the bank's notes worth $1.05 billion will decide at a meeting on March 12 whether to allow the bank to align the covenants with its dividend policy, Halyk said in a bourse filing.
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Additionally, the company said at the time it would close 34 more stores "over the next few years" as leases or operating covenants expired or as sale transactions were completed (making 100 closures in total).
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The Negative Outlook reflects the risk that Modernland could breach a number of its local-currency debt covenants in 2017, as EBITDA may remain weak unless presales improve in the next six to 12 months.
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ABG Sundal Collier also cut its rating on the stock, from hold to sell, saying the firm was low on cash and in danger of breaching its loan covenants in the second quarter of 21.30.
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Seeking to assuage investors' fears the company could break its debt covenants, it said that at the current oil price of approximately R580/bbl, it would be within current covenant levels at 30 June 2020.
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The Outlook revision reflects the significant improvement in the company's presales, which may result in higher EBITDA recognition, and the subsequent reduction in the risk of the company breaching its local-currency debt covenants in 2017.
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The state-controlled group said the writedowns will not impact its dividends and credit covenants, adding that it has begun revising its 21-23.9793 strategy to significantly reduce capital needs in the short and medium term.
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For evidence of a deterioration in the quality of credit, the worriers point to the growing proportion of leveraged loans issued without "covenants"—agreements which require firms to keep their overall level of debt under control.
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The pipeline operators considered the contracts to contain covenants that "run with the land," and the operators compared them to a deed restriction that might limit the height of a building, and which binds future owners.
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Throughout the nineteen-forties, most American cemeteries were subject to the same racially restrictive covenants as housing, and were just as resistant to integration, even after courts deemed this practice a violation of the Fourteenth Amendment.
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In the United States, systemic racism is real and omnipresent, but it works through voter suppression and local private prisons, jaywalking fines and asset forfeiture, housing covenants and employment discrimination and a million other diffused tactics.
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A number of firms have also sought bondholder consent to relax covenants such as those relating to waivers for potential non-compliance, banking sources said, adding that investors have had a hard time reducing their exposure.
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Among individual stocks, mall operator Intu slumped 30.1% to a record low as it scrapped a planned equity raise and said there was a risk that it might breach some of its debt covenants this year.
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Arranging banks need more flexibility when it comes to pricing and the ability to add covenants and prohibit the ability to raise additional debt through incremental baskets and make restricted payments, the second senior banker said.
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Abbott had raised concerns about the accuracy of various representations, warranties and covenants made by Alere in the merger agreement, and offered to pay $30 million to $50 million to terminate the deal, Alere said on Thursday.
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On both occasions, Marina Bay Sands revised the repayment schedule leading to a slower amortisation of the original loan and also amended the covenants relating to ratios for debt service coverage, interest coverage and debt-to-Ebitda.
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Cities like Detroit and Los Angeles erupted in violent unrest, sparked in part by the explosive mix of high prices and inferior housing imposed on black people, who, confined by racism, redlining and restrictive covenants, couldn't move.
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When negotiating a guaranty section it is fair for a franchisee to be responsible for financial obligations specific to their business, fees such as royalties and advertising, and terms among restricted covenants, including use of confidential information.
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The best PE professionals have an ability to modulate between C and I - from all over the details of the numbers and contract/covenants, to politic and friendly enough to build consensus and rapport with management teams.
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"For producers struggling to meet debt payments and avoid breaching the terms of loan covenants, rising prices are a chance to lock in future revenue and reduce downside risks," Reuters analyst John Kemp said in a commentary.
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The document also showed SAIL's net debt-to-earnings before interest, taxes, depreciation and amortization (EBITDA) ratio was 8.5, against the 1.5 to 3.75 "the company in financial covenants agreed to with some of the foreign lenders".
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Ellie Jukes, property strategist at Legal & General Group Plc's LGIM Real Assets, said that outperformance this year and next would come from the "bond-like income streams" associated with alternative property, which have strong covenants and indexation.
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MADRID, Oct 30 (Reuters) - Struggling Spanish supermarket chain DIA is working on making sure its surging debt does not reach a level which would break any of its financing covenants, Chief Executive Antonio Coto said on Tuesday.
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If the deal is blocked it would trigger Lonmin's debt covenants and require the platinum miner to pay $150 million in 20 days after credit waivers were granted by Lonmin's lenders in January, preventing it from defaulting.
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It said its balance sheet was a focus with net debt at mid-year expected to be below 110 million pounds ($140.02 million), adding it expected to meet banking covenants at both the mid and full year.
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Plus, the heightened competition and pressure to deploy unprecedented levels of dry powder has also led to weaker lending standards and flimsier loan covenants, resulting in more "sloppy" deals that will need to be restructured, Mahoney said.
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Some of the firms seeking to relax covenants have been clearly struggling to service their debt, said a local debt capital markets' banker, declining to be identified as he was not authorised to speak to the media.
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Standard & Poor's said on Wednesday it was revising the outlook for its B- rating on Quick's debt to negative on concerns that the rebranding might not generate sufficient cashflow to respect its commitments under its debt covenants.
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Sasol, which is the world's biggest maker of motor fuel from coal, said in Februrary that its gearing - net debt to EBITDA - stood at 2.9 times, below the maximum of 3.5 times allowed under its bank covenants.
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Black communities would restore wealth by safeguarding their musicians' master recordings and all their intellectual property, and they would protect that wealth, hiring their own police, founding their own schools, and making covenants on their own terms.
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Among individual stocks, shopping centre owner Intu slumped 40.9% to a record low as it scrapped a planned equity raise and said there was a risk that it might breach some of its debt covenants this year.
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PREPA's bonds are secured by a lien on the electric utility system revenues, and are further supported by covenants and Puerto Rico law that ensure the electricity rates are sufficient to cover all costs including debt service.
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When the agency sees a weakness, either in the way Ebitda is calculated or covenants that it deems "problematic," it addresses them with each institution, and will continue to address issues that way going forward, he said.
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We note that the lenders are also the shareholders of the group and that the set of covenants had been put in place based on the former management's business plan, which had under-estimated the group's distress.
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Most of these deals priced at tighter yields than many predicted while also driving hard on covenants and terms with little investor pushback, chipping away at the checks and balances traditionally required to raise junk-rated debt.
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Because of blatantly racist mortgage policies and racial "covenants" that prohibited blacks from living in certain neighbourhoods, African-Americans were kept in segregated areas, like Black Bottom and Paradise Valley, and had much lower rates of home ownership.
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"Taking all of these factors into account, we now believe there is a realistic prospect that we will not meet the net debt to EBITDA test contained in our financial covenants for 31 December 2017," the company said.
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"There's always a lot of capacity in bond covenants, particularly in the current European high-yield bond market, so investors need to be mindful of the various permissions that are proposed in any given issuance," Xtract's Tadros said.
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One focus will be on how Joseph C. Papa, Valeant's new chief executive, plans to reduce the company's debt to avoid possible violations of its covenants in 2017, according to David Maris, an analyst at Wells Fargo Securities.
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Indentures include covenants for limitations of liens including a carve-out such that the aggregate amount of secured debt does not exceed 15% of consolidated net tangible assets and conditions related to consolidation, mergers or sales of assets.
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CAPE TOWN (Reuters) - African miner Petra Diamonds is likely to strike a deal with its lenders that could include a waiver or a reset of its debt covenants within the next month, its chief executive Johan Dippenaar said.
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Bonds issues as part of the exchange, however, have often traded substantially below par in the secondary market, while poor covenants on the new notes have given companies significant leeway to incur additional debt at a more senior level.
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Headroom Under Current Covenants: Transocean, as provided in its bank credit agreement, is currently subject to a maximum debt-to-tangible capitalization ratio of 0.6x (0.34x as of June 30, 2017), excluding intangible asset impairments and certain other items.
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Additionally, the Shell UDW secured notes contain covenants that limit the ability of the borrowing subsidiaries to declare or pay dividends and impose a maximum collateral rig leverage ratio of 5.75x (less than 5x as of June 30, 2017).
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The middle tier is open to non-Mormons who accept the gospel of Jesus Christ in the afterlife, as well as Mormons who were "blinded by the craftiness of men," as 76:13 of the Doctrine and Covenants states.
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Syndicated loans could be endangered because credit-ratings downgrades put Toshiba in violation of loan covenants, the bankers said, adding that it was routine for them to grant a waiver in such a case to avoid a funding crisis.
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In a ruling against pawn shop operator Cash America, the court ordered the company to pay a make-whole premium to bondholders because the sale of the majority of a wholly owned subsidiary violated covenants in its bond indenture.
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This would help raise cash which along with proceeds from the planned sale of its stake in Pakistani utility K-Electric would ease cashflow pressures that have seen Abraaj violate some of its debt covenants, sources previously told Reuters.
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In the past year, however, storm clouds have darkened as the London-listed company warned it was in danger of breaching two key debt covenants, one of which required the company's tangible net worth to stay above $1.1 billion.
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"On their own covenants are rarely enough to move issuer default ratings, which capture the relative default risk of credit based on business model, execution risk and cash flow and leverage metrics," said Ed Eyerman, managing director at Fitch.
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Headroom Under Current Covenants: Transocean, as provided in its bank credit agreement, is currently subject to a maximum debt-to-tangible capitalization ratio of 0.6x (0.34x as of June 103, 2017), excluding intangible asset impairments and certain other items.
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Additionally, the Shell UDW secured notes contain covenants that limit the ability of the borrowing subsidiaries to declare or pay dividends, and impose a maximum collateral rig leverage ratio of 5.75x (less than 5x as of June 30, 2017).
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Mr. Erdogan was also reluctant to acknowledge possession of the audio recording because it appeared to have been obtained through intelligence surveillance inside the Saudi diplomatic compound — something that is routine but also a violation of international diplomatic covenants.
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" The California Association of Realtors, which had objected in 2008 to De La Torres' bill, told CNN it now "stands ready to engage in the broader conversation about whether such covenants should be removed completely from a property's history.
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ALMATY, Feb 19 (Reuters) - Kazakhstan's biggest bank by assets, Halyk Bank , on Wednesday asked the holders of its 2021 and 13 Eurobonds to waive covenants restricting it from paying out more than 50% of its net profit in dividends.
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Changes to financial agreements were completed and financial covenants, which were due to be tested at the end of November, were waived off to help the company move ahead with its turnaround plan and takeover by FV Beteiligungs-GmbH.
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On top of this, the credit research firm flagged an alteration to the incurrence covenants that could allow use of a carve-out to make future debt-funded dividends, without making accompanying pro forma changes to the leverage ratio.
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CHS's EBITDA/interest paid is solid for the 'B' rating category at 3.3x and the company had adequate operating cushion under the bank facility financial maintenance covenants, one of which requires net secured debt leverage maintained at or below 4.25x.
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" It continued, "Additionally, given our growing order book, increasing tender flow and the recovering levels of customer activity, we expect to continue to meet all applicable revolving and term loan revolving and credit facility covenants through the remainder of 2017.
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Fitch's credit analysis assumes the securitised portfolio migrates to the worst product mix permitted by the transaction covenants during the revolving period, which implies a maximum concentration of 20%, 20% and 35% on used car loans, leases and corporates, respectively.
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First, there was an issue with a set of bonds SoftBank had issued in 2013, which were guaranteed by the telecom business and had covenants requiring that the company hold investment-grade credit ratings before pursuing a sale of any sort.
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Evergrande said in February that it was asking creditors to approve amendments to its bond covenants to allow the country's top homebuilder to take on billions of dollars of additional debt, as it paves way for a Shenzhen backdoor listing.
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Under Valeant's covenants, the company can sell up to 4 percent of its total assets per fiscal year and use the proceeds to pay down bank debt, Justin Forlenza, an analyst at Covenant Review in New York, said in an interview.
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The latest transaction as well as its sale of 3-year and 5-year bonds this week come after creditors recently approved amendments to its Evergrande's bond covenants to allow it to take on billions of dollars of additional debt.
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They were, in fact, the words of a foreign ministry official, in a speech this month marking the 50th anniversary of the UN's adoption of two covenants on the protection of a wide range of political, cultural and other freedoms.
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In Europe, 95% of all leveraged loans are now "cov-lite," meaning companies have made fewer promises to investors about how they get their money back"Covenants" are deal terms that offer protections for the investors who are lending the money.
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The builder and New Zealand's second-largest company by revenue said it would breach "one or more" of its debt covenants, and that losses in its building unit would be bigger than its previous forecast of NZ$13 million ($115 million).
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Available liquidity on the casino side is minimal but adequate for operating needs when taking into account the healthy free cash flow (FCF) at the casino enterprise before distributions to the tribe, which are restrained by the credit facility covenants.
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And then there's the threat that a weakening of covenants will allow companies that should have been reorganized or restructured a long time ago the ability to keep going, potentially destroying value and recoveries when the day of reckoning comes.
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Banks could tighten their underwriting standards — ratchet down the leverage, demand more covenants, nix loans that are used to pay big dividends — and investors could be more discerning about the prices they are willing to pay for high-yielding bonds.
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Shares soared 13% in early trading after it secured the loan that has a tenure of up to 10 years, an interest rate of 2.75% and contains no financial covenants in line with the rest of the Qantas debt book.
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"The actions by the S&P underscores the need for swift relief for airline employees that is currently being considered by the government," a Delta spokesperson said, adding that the downgrade does not trigger any covenants or specific steps from Delta.
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That's why the First Amendment works the way it does, that's why the international rules about freedom of expression — this idea that freedom of expression is an American concept is not true, it's in all of the international covenants, as well.
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The company said that if the takeover offer were to lapse by June 30, a scheduled covenant test would occur, adding that there is a significant risk that it would be unable to comply with the covenants, should they be tested.
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"We considered other debt markets but the 20153a was the most suitable to us in terms of tenor, rates and covenants," Stevens said, adding that with revenues largely denominated in U.S. dollars, the greenback was a natural market to TFS.
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"These two deals are examples of investors seeing that we are late in the credit cycle and it is high time to compel lenders to put covenants in place that will protect lenders," Mayra Rodrigues Valladares, a banking and capital markets consultant said.
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Jababeka is also seeking consent of the 2019 note holders who participate in the exchange for the removal of substantially all of the restrictive covenants, all of the reporting requirements and certain of the events of default in the residual 2019 notes.
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Taken in a vacuum, isolated to fulfilling the covenants of the unwritten contract a Presidential candidate makes with his constituency, it would be tough to recall any elected official who has abided by the terms of the agreement as dogmatically as Trump.
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More stringent regulations on banks by the Office of the Comptroller of the Currency are part of the reason minimum liquidity covenants are more common now than in previous downturns such as in the mid-1980s, said Bruce Vincent, a retired industry executive.
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Ms Yang points out that loans that lack covenants almost always come with an agency credit rating, providing at least some degree of guaranteed oversight—if not, perhaps, enough for those badly burned by the failure of such ratings in the financial crisis.
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The drugmaker said on Tuesday it was on schedule to file its annual report on or before April 29 and that it would be in compliance with all financial covenants in its credit facility at the end of each affected quarterly period.
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That thesis was underpinned by Thomas Cook's extended flexibility on bank covenants for early next year and its progress on profitability, as well as a possible stake sale in its airline and its lower debt compared with five years ago, said Lane.
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Interserve, which warned in October that it may breach covenants after a trading downturn, said its lenders had agreed to extend a covenant test deferral date and the maturities of the financing facilities to April 30 from March 31, agreed in December.
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LONDON (Reuters) - Mining firm Petra Diamonds said it aims to raise $23 million to help cut its debt burden, and warned it could run low on working capital and breach its debt covenants if shareholders do not back the proposed rights issue.
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In the guidance, the regulators noted that certain lending characteristics were "aggressive" and flagged loans with little or no lender protections, known as covenants, and debt to earnings before interest, taxes, depreciation and amortization (EBITDA) ratios, or leverage, of more than 22015 times.
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HONG KONG (Reuters) - China Evergrande Group said it is asking creditors to approve amendments to its bond covenants to allow the country's top homebuilder to take on billions of dollars of additional debt, as it paves way for a Shenzhen backdoor listing.
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Moody's is projecting default rates in the high yield sector to drop from 3.9 percent at the end of March to 1.7 percent a year from now — in part because of the increased financial flexibility that weak loan covenants are giving companies.
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In a lawsuit last month, Rice also accused EQT of seeking to mislead its shareholders by portraying his board nominees as endorsing EQT's existing board, and presenting their election as triggering covenants that would require EQT to repay early or refinance its debt.
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One really interesting example is we had a company right on the cusp of switching and it turned out that they had a convertible bond issued where one of the covenants is that it must be listed or quoted on NYSE or NASDAQ.
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Recoveries in the leveraged market have averaged below 60% since 2015, according to Fitch, in roughly the same period that senior debt to Ebitda levels have risen to 4.5 times-5 times, reflecting the risk of weakening covenants in the last few years.
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Debt covenants, which limit the refiner's ability to declare or pay dividends until the company's debt-to-equity ratio improves, are the main obstacles to transfer at least a portion of Citgo's net income for covering PDVSA bond payments, the people said.
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Clearway Chief Financial Officer Chad Plotkin told investors on the company's fourth-quarter earnings call on Thursday that PG&E had continued to make payments, but that the cash did not flow to Clearway because of debt covenants in its renewable energy projects.
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Even those of us who have had humbling experiences in this realm can look at those who seem to have this lifelong thing figured out and see a different set of attitudes and presuppositions, which you might call a Regime of Covenants.
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Left-leaning activists explain the city's slump by pointing to the legacy of historic segregation—the city pioneered the use of restrictive covenants to prevent blacks from moving to good neighbourhoods—and generations of concentrated poverty, racist policing, crumbling infrastructure and failing schools.
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Duneier notes that, in explaining how blacks were prevented from buying or renting homes in white neighborhoods, Drake and Cayton referred to "the invisible barbed-wire fence of restrictive covenants," a formulation that was calculated to evoke gruesome images of the Third Reich.
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Debt covenants, which limit the refiner's ability to declare or pay dividends until the company's debt-to-equity ratio improves, are the main obstacles to transfer at least a portion of Citgo's net income for covering PDVSA bond payments, the people said.
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LIQUIDITY Liquidity Risk May Rise: Wanda's large liquidity position may still be insufficient if its total debt of more than CNY200 billion becomes due because of the cross-default clauses in various debt covenants are triggered, leading to acceleration of all of its debt.
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The move is designed to enable the L.A.-based company to "address our immediate liquidity issues, restructure our balance sheet and correct structural issues including reducing our high occupancy costs and restoring compliance with our debt covenants," the company said in a press statement.
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As you'd see in an equity financing, with its ratchets and liquidation preferences, there are many components to a debt deal: term of the facility, whether the principal amortizes or not, interest rate, warrant coverage and what kind of covenants come along with it.
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Shares in Penn West Petroleum Ltd sank 8.6 percent to 96 Canadian cents a share after it said it may default on its financial covenants at the end of the second quarter and raised doubts about its ability to continue as a going concern.
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"Since you don't have the covenants even if the leverage goes up to 10 times you actually cannot call default because there is no covenant — but if a company misses a payment then at the point you actually can call default," a third investor said.
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"We felt that the banks we had spoken to at the time were not willing to give us the amount of money to really change our lives, and the loan covenants that would come along with that money did not seem that appealing," he said.
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Seadrill now plans to raise at least $1 billion in new capital; extend bank maturities to the period from 2021 to 2023, reduce fixed amortisation and amend financial covenants; and extend the maturity of unsecured claims to mature in the period from 2025 to 2028.
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The Negative Outlook on Modernland's Long-Term Issuer Default Rating (IDR) reflects the risk that the company could breach a number of its local-currency debt covenants in 2017, as EBITDA may remain weak unless presales improve in the next six to 12 months.
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What could add to the calamity this time around is a tinder-box of $10 trillion in debt US corporations have amassed, thanks in part to low interest rates as well as lax covenants and standards in the years since the last financial crisis.
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Her parents' legal challenge of Chicago's restrictive racial housing covenants, in a case that went to the Supreme Court in 1940, was successful, but black and white people remained segregated and mob violence often greeted the African-American families that moved in, such as hers.
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But the reason we have affirmative action is that we once had slavery and Jim Crow and redlining and racial covenants, and that we once had all-white police forces and all-white union locals and all-white college campuses and all-white law firms.
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"We are too tight with the covenants but we discuss with the banks all the time and we are confident that in a month or so we will have solutions to it," Dippenaar told Reuters on the sidelines of a mining conference in Cape Town.
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Strong covenants were attached to fewer than 30 per cent of the leveraged loans written in the US last year, according to a tally by the IMF, leaving creditors with little power to intervene if management teams behave recklessly or a company's profit heads south.
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The company, which along with rivals has slashed costs and boosted operating efficiency to weather weak oil prices, said the test of its financial covenants at June 30, 2016 would be waived and replaced by a test for the 12 months ending July 31 2016.
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Martin Reeves, head of global high-yield at Legal & General Investment Management, said that when fallen angels need to refinance it can create tension between the issuer and bond investors, as the borrower is accustomed to weaker covenants normally provided to investment-grade buyers.
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As a reaction to the influx of Southern blacks to other regions and major cities like Chicago, Los Angeles, and New York during the early 20th century, white residents created those housing covenants to make sure neighborhoods stayed the same by keeping property in white hands.
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The principal financial covenants in the $2 billion revolving credit facility limit CenturyLink's debt to EBITDA for the past four quarters to no more than 4.0x and EBITDA to interest plus preferred dividends (with the terms as defined in the agreement) to no less than 1.5x.
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If you agreed to a lengthy non-compete period as part of the restricted covenants in your franchise agreement, you may cripple your ability to work in the industry you love and the only one in which you have an ability to generate a good income.
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"There has been no apparent negative impact to these loans that represent a small portion of our portfolio; and we continue to be confident in the strong security, strict covenants and over-collateralization we have in place to protect against future potential downside risk," Beechwood said.
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Other companies that now have minimum liquidity covenants tied to revolving credit facilities include Atwood Oceanics Inc , which agreed to maintain $150 million in liquidity in March, and Key Energy Services Inc, whose liquidity cannot be less than $100 million at the end of any quarter.
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The new debt covenants struck with Absa Bank, Nedbank, Firstrand Bank and Investec Asset Management allow for the interest rate on the loans to increase by up to two percent depending on by how much the ratio of Petra's net debt to consolidated EBITDA is breached.
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With the majority of loans lacking full lender protections called covenants – 81% of loans arranged in 2018 were covenant-lite, according to LPC data – investors' visibility on potential credit issues has been removed, thus the ability to get information directly from the company can become more valuable.
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OSLO, April 1 (Reuters) - Norway's BW Offshore, an owner of floating oil production vessels, is unable to tap the bond market for cash and could see liquidity reserves fall to a level breaching its debt covenants in 2016, it said in its annual report on Friday.
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The ratings also take into account Anglian Water's leading operational and regulatory performance, and the secured nature of the group's financing structure which benefits from structural enhancements, including trigger mechanisms (such as dividend lock-up provisions and positive and negative covenants) and debt service reserve liquidity.
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Bankers said such a meeting was rather routine for a company in trouble and that, even though credit-rating downgrades after the writedown warning put Toshiba in violation of loan covenants, it was routine for them to grant waivers in such cases to avoid a funding crisis.
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Ta-Nehisi Coates, in his influential 2014 Atlantic article "The Case for Reparations," enumerates the predatory lending practices, redlining and restrictive covenants that prevented black people from buying homes in middle-class white neighborhoods, setting patterns of segregation and wealth disparity that continue to this day.
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In June, Asurion, an insurer of cellphones, closed on a $3.75 billion loan package from Wall Street's biggest banks, with minimal covenants — agreements to protect creditors by notifying them when certain red flags, like a higher than agreed-upon debt-to-cash flow ratio, are waving.
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Tenet's debt agreements do not include financial maintenance covenants aside from a 1.5x fixed charge coverage ratio test in the bank agreement that is only in effect during a liquidity event, which is whenever available credit as calculated based on the bank agreement definitions is less than $0003 million.
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"Our decision to initiate a court-supervised restructuring will enable us to address our immediate liquidity issues, restructure our balance sheet, and correct structural issues including reducing our high occupancy costs and restoring compliance with our debt covenants," Sheree Waterson, Nasty Gal's chief executive officer, said in a statement.
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"We believe FTR may choose to suspend its dividend after 1Q17 in order to delever and build liquidity to address significant debt maturities in 2020-2022, even if it is not required to do so per its bonds' covenants," Goldman analyst Brett Feldman said in a Wednesday note.
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"They cut guidance to a point where now if there are any additional disappointments, any further negative surprises, any further reductions in guidance, there's going to be a crisis of confidence in the company regarding whether or not they can continue to meet their debt covenants," he said.
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Tenet's debt agreements do not include financial maintenance covenants aside from a 2.0x fixed charge coverage ratio test in the bank agreement that is only in effect during a liquidity event, which is whenever available credit as calculated based on the bank agreement definitions is less than $80 million.
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The profit warning comes after a string of issues at the company, including a three-week strike at its South Africa operations and the blocking of a consignment of diamonds in Tanzania that led the company to flag a possible breach of two of its debt covenants in October.
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The film's interviewees highlight the importance of a close relationship between America and Israel — the two countries to have "special covenants" with God — and praise Trump's controversial decision to move the Israeli embassy to Jerusalem, which many evangelicals see as a necessary step to fulfill various end times prophecies.
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Lacking the racial covenants that prohibited black residents from migrating to other parts of the city, Little Tokyo, or Bronzeville, became a densely populated center for African Americans, now often remembered as the period in which Charlie Parker and other jazz greats passed through its venues and boarding houses.
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LIQUIDITY Fitch assesses AZ's liquidity as adequate with readily available cash at USD4.6 billion at half-year 2017 (as defined by Fitch after assuming USD500 million restricted/non-readily available cash) and undrawn committed term bank facilities of USD3 billion maturing in 2022, which are not subject to financial covenants.
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The proposed securities qualify for 50% equity credit as they meet Fitch's criteria with regard to subordination, effective maturity of at least five years, full discretion to defer coupons for at least five years and limited events of default, as well as the absence of material covenants and look-back provisions.
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"That was meant to flag the issue for the banks so they can take corrective action now on their own before going through any type of examination cycle," Comptroller Thomas Curry told the Reuters Financial Regulation Summit in Washington D.C. "The actual loan terms and covenants are weakening," he said.
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"In December we were starting to see one or two companies show that access to the market is possible, although it may need to come with strings like secured financing as opposed to unsecured or covenants that were more stringent than in the past," said Sonali Pier, portfolio manager at PIMCO.
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"We see an increased risk that Noble may not be able to meet its debt obligations in the next six months, especially if the company is not able to turnaround or if it breaches its financial covenants and fails to get a waiver from banks," S&P said on Monday.
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LIQUIDITY Adequate Liquidity: Fitch assesses AZ's liquidity as adequate with readily available cash at USD4.5 billion at end-2016 (as defined by Fitch after assuming USD500 million restricted/non-readily available cash) and undrawn committed term bank facilities of USD3 billion maturing in 13, which are not subject to financial covenants.
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"I'd assume that there are facts not evident from the decision that make the resort to court an unusual result, particularly given the clarity of the law in this general area, rather than a harbinger of new developments in retail operating covenants," Dunn added about the ruling against Starbucks and in Simon's favor.
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Borrowers had become used to flexible 'covenant-lite' loans over the last four to five years, but investors are now asking for covenants to be added in some cases to stop borrowers raising fresh debt at their discretion, particularly for private-equity backed companies that are raising new loans to pay dividends.
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High-yield-lite documentation excludes typical protections in the asset class, such as a restricted payments covenant, which limits an issuer from paying dividends and making other distributions out of the reach of creditors, and/or debt incurrence covenants, which limit the amount of debt an issuer can raise subject to leverage ratio tests.
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WARREN BUFFETT: Yeah, there's probably more competition for buying companies by people who are using other people's money, and therefore, have less sensitivity to price and who are willing to borrow a whole lot more and are being offered the ability to borrow a whole lot more, with less in the way of covenants.
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The outstanding USD403m 2020 notes and USD150m 2022 notes as well as the proposed 2023 notes will include all of the restrictive covenants that Lippo is seeking consent to remove in the 2019 notes, so the surviving 2019 bondholders will continue to indirectly benefit in the form of the cross acceleration clause in the 2019 notes.
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Reports 2016 second quarter results * On a basic per common share basis, FFO and AFFO decreased by $0.07 per common share and $0.05 per common share, respectively for Q2 * At June 30, 2016, company was not in compliance with debt service covenants affecting 14 mortgage loans in aggregate amount of $201.4 million Source text for Eikon: Further company coverage:
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The financial covenants within Crown's unsecured credit agreement include a total net leverage ratio of 6.5x (not to exceed 7x for up to three quarters following a qualified acquisition), a senior secured leverage ratio of 3.5x (on a gross basis) and, if rated below investment grade by two of three rating agencies, consolidated interest coverage of 2.5x.
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"As the impact of the coronavirus and multiple government travel reactions sweep through our world, many airlines have probably already been driven into technical bankruptcy, or are at least substantially in breach of debt covenants," the CAPA Centre for Aviation, based in Australia, said Sunday night as yet more airlines slashed long-haul and intra-European service.
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The financial covenants within the new unsecured credit agreement include a total net leverage ratio of 6.5x (not to exceed 7x for up to three quarters following a qualified acquisition), a senior secured leverage ratio of 20153x (on a gross basis) and, if rated below investment grade by two of three rating agencies, consolidated interest coverage of 2.5x.
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