Pages from Covenant Review - Will EBITDA Become Infected by a Coronavirus Addback

Global financial markets are reeling in the wake of the COVID-19 coronavirus (“Coronavirus”) outbreak.1  Although the travel industry is the hardest hit U.S. sector to date, the impact of a global coronavirus outbreak is expected to be widespread across many industries. In this report, we examine whether issuers can make adjustments to EBITDA based on coronavirus-related losses. We also describe a novel addback for adjustments based on lost earnings from non-recurring events, potentially including the Coronavirus outbreak.


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LSTA Newsletter: September 18, 2020

This week in review: Tess Virmani announces (and recaps) the LSTA’s new Simple SOFR Concept Credit Agreement, Meredith Coffey reviews the ARRC’s progress on Term…

Simple SOFR is Even Simpler

This summer has seen a number of tools added to the LIBOR transition toolbox, such as the Updated ARRC Hardwired Fallback Language (“Hardwired Fallback Language”)…