In this edition of In the Know, we look at how real-estate assets are financed in the bond market, in particular, we delve into certain key structuring and execution challenges and considerations in high yield bond transactions.

In particular, we propose to explore the following:

  • What credit support, including a security package, can be offered up?
  • What type of debt financing is most appropriate for the corporate group? A New York law high yield bond or English law governed covenanted Eurobond?
  • What covenant flexibility is required in terms of (i) running the business (cash flow versus asset lending), (ii) further debt incurrence, and (iii) payments/value leakage outside of the restricted group?

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