hard · Debt Capital Markets
A B-rated issuer executes a liability management exercise (LME) by moving its intellectual property to an 'unrestricted subsidiary' and using it as collateral for a new super-priority loan. This is an example of:
- A 'make-whole' redemption.
- An 'asset drop-down' or 'J. Crew' style maneuver.
- A 'sequential' waterfall distribution.
- An 'uptier' exchange.
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More Debt Capital Markets practice
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