Xtract Europe is pleased to announce the launch of its European Loan Covenant service designed to provide a comprehensive analysis of new and existing credit facilities across a wide spectrum of debt structures (including senior, second lien, mezzanine, payment-in-kind, comprising high yield features and 'covenant-lite').
The service is launching with an initial coverage list of over 100 large leveraged loans and is expected to grow substantially. All reports are undertaken on a confidential basis with each client.
Xtract Europe launched its European High Yield and Convertible bond covenant analysis services in May 2010 and has highly successful bond and loan services in the United States, the latter being in partnership with the Loan Syndications and Trading Association. Xtract is unique in providing a highly professional covenant analysis service on bonds and loans on both sides of the Atlantic as well as Asia.
"Full understanding of a facilities agreement is critical for loan market participants, especially in changing markets and given the upcoming debt maturity wall. Our reports, produced by a team with many years experience as lawyers in the debt markets, help lenders identify and understand key issues in the facilities agreement, particularly loopholes in lenders' protections and their possible consequences" said Michael Knox, CFA, President of Xtract Research.
The Xtract Europe Loan Covenant service features reports prepared by Xtract's team of experienced finance lawyers. The reports provide a detailed summary of the key terms, prepayment provisions, financial covenants, general covenants, defaults and remedies, amendment provisions and permitted assignments as well as detailed analysis of each. Clients also have the ability to consult with Xtract's London based lawyers to discuss the report in more detail.
Xtract Europe's European Managing Director and Senior European Covenant Analyst James Slessenger commented: "Investors need to understand the terms of loans approaching refinancing or which have become stressed and where any gaps may become apparent and be detrimental. In new loans, the critical question is whether the terms are still aggressive pre-Lehman era in style, despite the very different market circumstances, or whether lenders now have a more balanced regime of protections. Our service identifies and explains these issues."
Xtract Europe is a division of Xtract Research LLC, a leading global provider of covenant oriented fixed income research and data. Xtract has a significant presence in the United States, particularly in the syndicated loan space through its partnership with the LSTA. Xtract is an affiliate of the FT Group and has operations in Europe, North America and Asia. Xtract's clients consist of many of the world's largest hedge funds, investment managers, insurance companies, private equity firms and investment banks.