As the English law EU covenant lite TLB market develops, how different are English covenant lite TLB deals to their New York law counterparts, and how much have both instruments moved towards the high yield bond market?
There has been a marked convergence between the EU and US TLB terms in the past year or so. Meanwhile, certain structural features of EU deals are commonly included in cross-border US TLB deals (governed by NY law) for EU credits. Key differences do remain so that overall the US TLB terms are more sponsor friendlybutthedivergenceis diminishingas these markets continue to evolve.
Milbank's leveraged finance team remains at the forefront of these markets, and this briefing provides a snapshot of the key similarities and differences today commencing with a high level overview of US and EU TLB terms.
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