Bond Change of Control Covenants – The New Poison Pill?

  • Many bonds have a covenant in case of a change of control allowing holders to put the bond back at par.
  • That didn’t matter when bonds were trading above par, but many don’t today – creating a potential headwind for M&A.
  • Here are some issuers where this is a big problem.
  • Lots more interesting analysis here.
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