PIK definition

View the related practice notes about PIK

Bridge to bond facilities

Bridge to bond facilities What are they? A bridge to bond facility is a type of acquisition financing where the buyer requires the certainty of a fully committed financing package, but which is intended to be replaced in the future with a mid- to long-term financing in the form of high yield bonds. In markets where acquisitions typically do not have a financing condition, a bridge financing package (which is available to be drawn if necessary) is often a key component to a successful bid. This Practice Note focuses on bridge to high yield bond financing. However, investment-grade borrowers also commonly use bridge facilities for acquisitions. Bridge commitments for investment-grade borrowers differ in many ways, including: lower pricing, much less restrictive covenants (the terms often follow the borrower’s existing credit facilities) and the securities demand mechanic may not be included (or if included, it may only be triggered by ratings downgrade). Bridge commitments for investment grade borrowers may also have longer maturities (or extension rights exercisable by...

Repair and dilapidation disputes—commercial leases in Scotland

Repair and dilapidation disputes—commercial leases in Scotland This Practice Note considers repair obligations in commercial leases in Scotland, including interpretation of repair obligations, extraordinary repairs, interim dilapidations, remedies for breach of repairing obligations by either landlord or tenant, the extent of repair obligations and the obligation to make payment in respect of repairs upon termination of a commercial lease. For main judicial and non-judicial remedies in the context of landlord and tenant disputes in Scotland generally, see Practice Note: Remedies in landlord and tenant disputes—Scotland. Interpreting repair obligations in commercial leases The repair clause within a lease will set out the respective liabilities and obligations of the landlord and tenant in respect of the premises let and any common parts of the property, of which the premises form part. In practice, parties and their solicitors will negotiate the apportionment of liability for repairs, and clear wording is required to transfer liability for repairs from the landlord to the tenant. Care should also be taken when defining...