With the recent boom in the issuance of European high yield bonds, complex pari passu senior secured loan / high yield bond combination financings have become more prevalent. In these financings, there is a need to balance the interests of senior lenders and high yield bondholders who, really for the first time, now find themselves at the same level in the capital structure and sharing security. While the market is clearly still evolving, a number of recent deals have taken a similar approach on one of the most difficult intercreditor issues – control over security enforcement.
