International: In the Know - Spotlight on real estate - The hedge against inflation? Financing considerations in the real estate market

In brief

Welcome to the October edition of In the Know, Baker McKenzie's Leveraged Finance newsletter that analyses significant trends and salient legal issues for participants in leveraged finance and high yield markets around the globe.

In this edition we look at how real-estate assets are financed in the bond market, in particular, we delve into certain key structuring and execution challenges and considerations in high yield bond transactions.


In particular, we propose to explore the following:

  • What credit support, including a security package, can be offered up?
  • What type of debt financing is most appropriate for the corporate group? A New York law high yield bond or English law governed covenanted Eurobond?
  • What covenant flexibility is required in terms of (i) running the business (cash flow versus asset lending), (ii) further debt incurrence, and (iii) payments/value leakage outside of the restricted group?

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Please note that the original date of publication of this alert is 18 October 2022. Click here to download the publication.

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