Shearman & Sterling LLP
Issue link: https://digital.shearman.com/i/1494417
Covenants: Incurrence v. Maintenance 15 High Yield covenants with very few exceptions (i.e. reporting) are "incurrence-based" covenants which restrict specified actions by the Issuer on a case-by-case basis VS Historically, bank loans typically contained "maintenance" covenants which required the Borrower to maintain compliance with specified terms on an ongoing basis The Debt Stack – Structuring and Incurrence Covenants