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Given that the lenders probably accepted the transfers and the process barrier was crossed, the IPO was ready to trigger the IPO, leading to an IPO of Chewy on the NYSE in June 2019. At the end of the day, PetSmart`s creditors received a payment on PetSmart`s ipo revenues (approximately 15% of the term loans were repaid) and PetSmart`s credit rating was revalued (from CCC to B- from S-P and from Caa1 to B3 from Moody`s). In the event that a U.S. credit contract involves a leveraged contract, it is likely to be a “net debt test” that will reduce the total debt (or part of the debt tested) by the unlimited payment method and cash equivalents of the borrower and its limited subsidiaries. Some aggressive transactions in 2019 did not contain certain debts (such as purchase money and leasing commitments, all subordinated debts or even debts up to a fixed dollar amount) in the portion of the debt tested. Lenders sometimes limit the amount of cash a borrower can pay net to avoid both over-leverage and cash storage. The evolution of compensation has highlighted the continued success of better credit in the need for greater flexibility. In the United States and Europe, all lenders (whether revolving lenders or credit lenders) share first-hand pledges (with the other revolving loan that often share pawn rights on a shared priority basis with term loans, an agreement not covered by this article) or facilities uniting the same security package, the same ability to enforce that guarantee, and the same priority in terms of payments and security enforcement revenues, unless there is a “first in last out” structure that, as explained below, is sometimes used in the United States. A transaction can also be made via a first pawn/second structure, in which the “first pfandrecht” and “second pfandrecht” loans are guaranteed by the same guarantees, but the pawn fees of the second pawnbroker are more recent than those of the first pawnbrokers (i.e. no guarantee product or advance can be levied on the latter, until all the first deposit fees are repaid (unless advances are available). If there is a revolving credit facility, it will be included in the first mortgages. The second guarantee facility is a long-term loan with no interim repayment. The structures of the first pawn/second are essentially treated as two separate loans with two sets of loan documents and two agents, the relationship between the two groups of lenders being established and regulated under an interbank agreement.

The widespread use of standard LMA forms has led to a good familiarity with the European investor market, which has increased the effectiveness of verification and understanding not only by those negotiating the documents, but also by those who plan to participate in the loan. However, the recommended LmA forms are only a starting point and, although the LmA`s recommended “back-end” language for the boiler platform and other non-contentious provisions of the loan agreement is easily negotiated (if so), provisions that have a greater commercial impact on the parties (such as mandatory advances, trade commitments, financial commitments, representations and guarantees, transfer restrictions, terms of use, etc.) remain as important as ever. In the case of European borrowers with high-yield bond debt and bank debt (usually revolving credit facilities) in their capital structures, so-called “super-senior” structures are also widespread. In these structures, both revolving credit facility lenders and high-yield bondholders rank equally in terms of payment and guarantee package (where notes are secured).