medium · Corporate Credit Analysis

In a well-known creditor-on-creditor move, a company transfers its valuable trademarks and brands to an 'unrestricted subsidiary' that is not bound by the existing bond covenants. It then uses these brands as collateral for a new loan. This tactic is specifically referred to as:

1. The Serta Uptiering
2. The Chewy Drop-Down
3. The J.Crew Manoeuvre
4. A Leveraged Recapitalization

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