The mid-March launch of a 975 million ($1.32 billion) refinancing for VNU World Directories set the ball rolling for what European loan market players expect to be a growing trend in Europe: That of the covenant-lite loan.

The feature has been part of the U.S. loan space for a while, and now it is starting to gain ground in Europe as well. On April 10, Citigroup and BNP Paribas launched a $840 million, cross-border covenant-lite recap for Culligan Finance Corp., and last Wednesday, BNP Paribas and JPMorgan launched the first new-money covenant-lite loan in Europe for Trader Media Group, consisting of a an 800 million sterling institutional loan and a 35 million sterling revolver.

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