As if the high-yield bond market hasn't treated private equity firms well enough already, some financial sponsors are now pushing for more flexibility in the covenants - or the restrictions around a company's capital structure - that govern their high-yield borrowings.

Attorneys approached with implementing such changes said that less restrictive covenants are aimed at helping portfolio companies raise cheaper capital to finance expansion. Such changes could also make it easier for sponsors to exit their companies more easily.

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