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Article Discusses Cov-Lite Loans Traits and Trends

January 26, 2012

To read the article, click here.

Corporate partner Eric Goodison authored an article discussing covenant-lite (cov-lite) loans and the benefits and drawbacks for borrowers and lenders. Cov-lite loans, which largely disappeared during the credit crunch because lenders had greater market power to reject these types of borrower-friendly deals, have begun to reappear in the syndicated loan market. The article, "Covenant-Lite Loans Traits and Trends," explains the typical provisions of cov-lite loans, the elements of post-credit crunch cov-lite loans, and the pros and cons of cov-lite loans for borrowers and lenders. The article was originally published in the September issue of Practical Law The Journal, and was published again in the January 2012 issue of GE Capital's CapitaLens, a monthly e-newsletter on leveraged finance.

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