US Special Situations: Advantage Solutions – Transaction Snapshot
Evan DuFaux: Special Situations Analyst. - LevFin Insights
10 February 2026
Insights into Advantage Solutions – Transaction Snapshot, including:
- Transaction Structure and Premium to Market: Discover how the Advantage Solutions Debt Exchange offers par-for-par consideration with 7.4% cash payment—delivering a 15+ point premium to mid-80s market prices—plus 2.25% early tender support fees for creditors acting by February 23.
- Creditor Participation Gap: Learn why this debt exchange launched with only 56% creditor support despite requiring 99% minimum participation, leaving a $727mn shortfall and uncertainty around whether the threshold will be amended or the co-op agreement will drive additional commitments.
- Maturity Extension and Deleveraging Benefits: See how the Advantage Solutions Debt Exchange pushes out term loan and bond maturities while reducing gross leverage by nearly half a turn to 4.8x, with participating creditors gaining improved positioning in a $1.6bn pro forma capital structure.
- Holdout Risk and Covenant Stripping: Understand the severe consequences for non-participating creditors who would forfeit secured liens and covenant protections, becoming effectively unsecured while exchanging creditors capture deleveraging benefits and premium pricing.
- Interest Expense Trade-Off: Gauge the $26mn annual increase in interest costs from 175-250bps coupon step-ups, bringing pro forma interest coverage to 1.64x (excluding aggressive EBITDA add-backs) and raising questions about the company’s ability to service debt amid consumer spending headwinds.
Advantage Solutions yesterday disclosed a TSA supported by an ad hoc group of creditors constituting a thin majority of the capital structure. The transaction aims to push out maturities on the company’s term loan and secured notes while adding more than $20mn of interest expense.
The ad hoc group of creditors with holdings across the term loan and secured notes is advised by Paul Weiss and PJT, with the vast majority of the company’s creditors banded together in an existing co-op group, sources tell LFI. The company is advised on the transaction by Latham Watkins and Evercore.
The transaction outlined in the TSA serves to proactively push out debt maturities well before the term loan is scheduled to become current in October. A modest deleveraging benefit comes alongside a $125mn cash payment to creditors, though PIK support fees mitigate the benefit.
The early tender deadline for creditors to secure a 2.25% support fee is Feb. 23, with the final deadline set for March 9. Notably, the deal includes a 99% minimum participation condition—with just 56% of creditors on board as of yesterday’s announcement. The capital structure pro forma for the transaction, assuming 100% participation by the early tender deadline, is shown below.
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