The restricted payments covenant has changed unrecognisably as borrowers seek more room for manoeuvre in a downturn.
The purchase comes as other US-based managers have launched Asia-focused funds, including those that have been in the region for some time.
Unable to force deal sponsors to the table in times of stress, lenders find themselves effectively handcuffed. No wonder the covenant-lite loan remains one of the asset class’s big talking points.
After New York-based MCC faced vociferous opposition to its original internal merger proposal, the firm reworked its offer and is moving ahead with an altered proposal.
Unitranches, mid-market CLO issuance and leverage are all topics that could be big in the new year.
Some sectors are already struggling as the global economy begins to slow down while others are booming and fund managers will need to know how to spot opportunities in both camps, according to Baird's Paul Bail
Aircraft leasing has become a more crowded area as the sector has garnered more attention from larger asset managers.
Independent sponsors, once known as fundless sponsors, have proliferated in recent years as they shed a reputation for inability to deliver, and have appealed to LPs wanting to commit capital to individual deals.
The merger would, as of the end of the third quarter, produce a BDC with investments and commitments of $3.25bn.
The transaction is just the latest in a string of mergers that are slowly reshaping private credit.
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