In 2016, global sponsors and their advisers were successful in continuing to export their experiences from financing transactions in the US leveraged loan and global bond markets to the European leveraged loan market, and this continues apace in 2017. Momentum behind the continued adoption of US covenant-lite terms into European loans is strong as there is now a growing source of European “cov-lite” precedents, in turn strengthening the argument for cov-lite, in the absence of a market correction. This convergence brings a number of documentation issues to consider.

Originally published in The International Comparative Legal Guide to: Lending & Secured Finance - April, 2017.