“What’s different in private credit versus large broadly syndicated loans is in private credit they’re very focused on the ability to incur additional debt, the ability to distribute assets or distribute money through dividends or otherwise,” says Stephen Boyko, partner and co-founder of Proskauer’s Private Credit Group. “They’re also incredibly concerned about the flexibility of the documents.” Boyko joins Bloomberg Intelligence’s Noel Hebert on the latest episode of the Credit Crunch podcast to discuss the evolution of private credit and private credit documentation, why current headlines are inconsistent with market trends and lender protections. The two also discuss key covenants, the incidence of default and the growing bias toward higher-Ebitda borrowers.
