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UNDERSTANDING HIGH-YIELD BONDS

UNDERSTANDING HIGH-YIELD BONDS A complete guide for investors, issuers, banks and advisersHYB cover blue 90% AI 70%.indd 126/06/2014 17:29:48 IntroductionAboutMilbankKey ContactsTo discuss our capabilities, please visit our website at or contact any of the attorneys following is an excerpt of chapters 6-11 from PEI s publication UNDERSTANDING HIGH-YIELD BONDS : A complete guide for investors, issuers, banks and advisers. Authored by members of Milbank s Global Securities HIGH-YIELD team, Chapters 6 11 are an essential reference guide for all professionals involved in originating, structuring/restructuring, issuing and investing in HIGH-YIELD BONDS , and drafting and negotiating the covenant package.

default), indenture covenants are typically only tested for compliance at the time an issuer wants to take a particular action (for example, borrow additional debt). The most standard, and often the most negotiated, covenants place limitations on issuers’ ability to: y Incur additional debt. y Grant liens on assets.

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