Welcome to the February 2020 edition of In the Know, Baker McKenzie's Leveraged Finance newsletter that takes a look at global market trends in various jurisdictions and areas of law relating to leveraged finance and high yield.

The outbreak of the novel coronavirus (Covid-19) is having increasing global impact including loss of lives and growing disruption. Amidst this rapidly changing situation corporates, sponsors, banks and other financial institutions need to be aware of the potential financial, regulatory and legal consequences for their business.

In this article we identify certain key risks arising from the Covid-19 outbreak that apply to existing and new leveraged finance structures and which may have been overlooked.

We consider potential (but perhaps less obvious) pitfalls in leveraged finance documentation in the context of Covid-19 in respect of existing capital structures, and in respect of new leveraged acquisitions.

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