Junk Issuers Add Safeguards to Bond Sales to Attract Lenders
- Multiversity, Motel One, La Doria add J Crew blockers to bonds
- Investors bruised by recent turmoil in high yield market
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Junk borrowers Multiversity SpA, Motel One GmbH and La Doria SpA tweaked the terms of their planned bond sales on Thursday to appeal to investors unsettled by recent turmoil in the high-yield market.
The trio of firms made various document changes, with all of them adding a so-called J Crew blocker, according to people familiar with the matter who asked not to be identified because they’re not authorized to speak about it. The clause aims to prohibit the transfer of assets away from existing lenders’ legal claims.