The Art of the High-Yield Covenant: Financial Terms and Definitions Derived from the Income Statement | Practical Law

The Art of the High-Yield Covenant: Financial Terms and Definitions Derived from the Income Statement | Practical Law

A Note identifying common accounting and financial terms used in high-yield debt covenants and describing how these terms are adjusted for items not reflected in a company's financial statements or other financial disclosures. This Note identifies issues that drafters should focus on in preparing or reviewing the income statement-based definitions contained in high-yield debt covenant provisions.

The Art of the High-Yield Covenant: Financial Terms and Definitions Derived from the Income Statement

by Patrick M. Baron, Simpson Thacher & Bartlett LLP, with Practical Law Corporate & Securities
Maintained • USA (National/Federal)
A Note identifying common accounting and financial terms used in high-yield debt covenants and describing how these terms are adjusted for items not reflected in a company's financial statements or other financial disclosures. This Note identifies issues that drafters should focus on in preparing or reviewing the income statement-based definitions contained in high-yield debt covenant provisions.