High-Yield Indenture: What are Financial Covenants and Ratios? | Practical Law

High-Yield Indenture: What are Financial Covenants and Ratios? | Practical Law

An overview of the standard financial covenants and ratio tests contained in an indenture for high-yield debt securities. In particular, this Practice Note explains what financial covenants are, identifies market considerations, and examines two principal cash flow ratios (the fixed charge coverage ratio and the leverage ratio) in detail.

High-Yield Indenture: What are Financial Covenants and Ratios?

Practical Law Practice Note 5-422-4904 (Approx. 8 pages)

High-Yield Indenture: What are Financial Covenants and Ratios?

by Practical Law Corporate & Securities
MaintainedUSA (National/Federal)
An overview of the standard financial covenants and ratio tests contained in an indenture for high-yield debt securities. In particular, this Practice Note explains what financial covenants are, identifies market considerations, and examines two principal cash flow ratios (the fixed charge coverage ratio and the leverage ratio) in detail.