Shearman & Sterling LLP
Issue link: https://digital.shearman.com/i/1494417
Limitation on Restricted Payments – Purpose 21 Purpose: • Limit leakage of cash outside of the Company and its Restricted Subsidiaries by imposing a framework in respect of payments to shareholders, pre-payments of subordinated debt, and investments, in order to: • protect the net asset base of the company from leakage (to shareholders in particular) • protect the natural priority of creditors by precluding junior creditors from extracting value in priority to senior creditors • protect against value leakage through minority investments • maintain cash buffer within the group to enable senior debt service The Debt Stack – Structuring and Incurrence Covenants