Marks & Spencer has come under fire for the poor covenant package on its £400 million 10-year deal. The lack of a change of control covenant was particularly unwelcome given the rumours at the time that retail giant Philip Green was sniffing around M&S for a potential acquisition. There was also no negative pledge covenant, so M&S is free to issue bonds in future that are secured and senior to this bond.
The deal was oversubscribed but performed poorly in the aftermarket, trading slightly wide
The week on Risk.net, July 7-13, 2018Receive this by email