A simmering debate over mandatory redemption covenants on bonds that pre-fund mergers and acquisition deals returned to a boil last week as investors and issuers jockeyed over the structure of two such bonds. Bookrunners leading two M&A bond deals offered by financial marketplace INTERCONTINENTAL EXCHANGE and software company ROPER TECHNOLOGIES were peppered with questions from investors newly concerned about the covenant language and seeking a change to the standard language. "There was a lot more discussion around the ICE deal and the SMR clause: how does this impact me? What is the fine print here? Whereas in the past they would pass over it," said David Knutson, head of credit research Americas at Schroders.
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