Strafford Webinar: Restructuring Private Credit Loans
Timothy Carter is participating in this Strafford CLE webinar to discuss the rise in private credit restructurings and the changing dynamics between private equity sponsors and private credit lenders when a borrower is in distress. The panel will explore the more expansive restructuring options available with private credit loans, how lenders are navigating covenant-lite loans when a borrower is in distress, lessons learned from recent cases and trends in liability management exercises (LMEs), and whether out-of-court solutions will continue to be the norm in these transactions.
Description
As private credit continues to play a significant role in financial markets, there has been a rise in the number of out-of-court restructurings. The options for these restructurings continue to evolve and change the dynamics of private credit transactions.
Because private credit loans are less liquid than syndicated loans and are less likely to be traded, distressed borrowers have more restructuring options available and they may ultimately be able to avoid an expensive bankruptcy. While the flexibility of private credit loans is attractive for both borrowers and lenders, lenders should be aware that not all private credit restructurings can be streamlined and less costly. Instead, a distressed borrower may need to avail itself of bankruptcy protection and if there are several private lenders to a transaction, securing unanimous consent of all lenders could be challenging in the context of any restructuring or loan modification.
Outline
- Private credit market overview
- Continued evolution of private credit restructuring
- Expanded restructuring options with private credit vs. syndicated loans
- Mitigating liability management risks
- Lessons learned from recent cases and likely future developments in this area
- Practitioner pointers and key takeaways
Benefits
- How has the increasing presence of private credit funds in restructurings changed the dynamics of deals?
- Are private credit funds more open to exploring creative out-of-court restructurings or workout solutions?
- What might be the likely impact of the surge in LMEs in the syndicated market on private credit?
- What are some key lessons to be learned from recent cases and how will these cases impact future private credit deals and restructurings?
