Firms Facing Extended Pandemic Seek Greater Loan Flexibility

(Bloomberg) -- Companies are going back to lenders to ask them to again loosen loan terms as they seek greater flexibility to steer a course through the coronavirus pandemic.

Casino operator MGM China Holdings Ltd. is asking for a further easing of financial covenants tied to a loan until the end of next year, according to people familiar with the matter. The firm had previously made a request in April for a waiver until June 2021.

Johannesburg-based pulp and paper firm Sappi Ltd. on Wednesday said it extended its loan covenant suspension period to September 2021 after previously securing a year-long waiver from lenders in March.

Read More: Sappi Says Covenant Suspension Period Extended to September 2021

At least 26 companies including Swiss baker Aryzta AG, Texas-based LyondellBasell Industries NV, and theme park operator Six Flags Entertainment Corp. have sought further easing of covenants or fresh extensions of waiver periods in recent months.

Lenders have received more than 450 requests for covenant waivers or revisions since March as borrowers try to protect against uncertainty and impact from the global pandemic, according to data compiled by Bloomberg.

Click here for a worksheet of pandemic-driven covenant revisions in Americas, here for Europe, Middle East and Africa, and here for Asia.

©2020 Bloomberg L.P.