Statistics from Dealogic indicate that about $ 1 Trillion of leveraged buy-out debt at portfolio companies is due for refinancing in the coming years. The bulk of the debt that will become due for refinancing was originally negotiated on very favorable terms with low credit spreads relative to risk free rates. Frequently, banks were competing among themselves to provide debt financing to leveraged buy-outs sponsored by the most established names in the industry. There were regional differences in lending patterns between the US markets where “covenant-lite” loans offering lower protection to the lender were more prevalent relative to the lending practices observed in Europe.