Over the past decade the covenant light debt [1] has regained popularity [2] [3]... | Hacker News

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divbzero on Feb 20, 2020 | parent | context | favorite | on: DigitalOcean raises $100M in debt as it scales tow...

Over the past decade the covenant light debt [1] has regained popularity [2] [3].

[1]: https://en.wikipedia.org/wiki/Cov-lite

[2]: https://www.businessinsider.com/leveraged-loan-record-87-per...

[3]: https://www.bloomberg.com/opinion/articles/2020-02-18/the-co...

It’d be very interesting to learn what covenants are attached to DigitalOcean’s new credit facility. Their press release [4] lists the lenders but does not discuss the terms, which will probably stay confidential until they file to go public.

[4]: https://www.digitalocean.com/press/releases/digitalocean-sec...

cpach on Feb 20, 2020 [–]

DO never struck me as a company that would go public. Do you think they will?

divbzero on Feb 20, 2020 | [–]

That’s a fair point. In today’s capital rich environment they could stay private for a very long time.

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