OTTAWA, May 20 (Reuters) - Canada’s loans for large companies that need help during the coronavirus outbreak will have no upper limit but they will include restrictions aimed at helping taxpayers share in the upside of the borrower’s potential recovery, the finance minister said on Wednesday.
A publicly traded borrower will be required to issue warrants with a purchase option of their common shares totaling 15% of the principal loan -- or receive cash consideration equivalent to the value of the warrants -- so that the state can in “share in the upside of the borrower’s recovery”, Finance Minister Bill Morneau said.
The so-called The Large Employer Emergency Financing Facility (LEEFF) was launched last week. (Reporting by Steve Scherer)
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