US Special Situations: First Brands minority lender group forms amid non-pro rata DIP concerns

Veronica Graff - Reporter, LevFin Insights
Peter Agra - Senior Reporter, LevFin Insights
Chris Donnelly - Managing Director, LevFin Insights

24 September 2025

Download the Full Report to Gain:

Insights into First Brands’ non-pro rata DIP financing and its implications for lender dynamics, liquidity, markets, and credit risk, including:

  • Minority group forms: Why a lender cohort is organizing now.
  • DIP size and structure: What a $1.0bn–$1.5bn facility with roll-ups could mean for access and economics.
  • Steerco dynamics: Which large holders are leading and how terms could differ.
  • Liquidity pressures: How heavy factoring and supply chain financing shape the risk picture.
  • Market and ratings context: What sliding loan prices and Caa1/CCC+ downgrades signal about near-term stress.

A minority cohort of First Brands lenders has retained Glenn Agre for legal advice as the automotive aftermarket supplier’s efforts to line up as much as $1.5bn in DIP financing stoke fears that participants will not all be offered the same terms, sources tell LFI. Glenn Agre currently represents over $100mn of first-lien lenders, they continued. Lenders organized with Gibson Dunn and Evercore have been sounding out the possibility of providing $1bn-$1.5bn in DIP financing, a portion of which is expected to include a roll-up of existing 1L holdings, according to sources familiar with the matter. Questions remain over the economics and whether access to the loan will be open on a pro rata basis or if steerco creditors will receive premium terms, sources noted.

 

 

Fill out the below form to view the full article:

Please note that we can only respond to valid business email addresses and the interview is already available to clients.

Recently Published

Research
Euro Strategy: Key Sector Risks for 2026

Euro Strategy: Key Sector Risks for 2026

June 23, 20261 min Read More
Stressed Corporates Dealflow
EMEA Special Situations: Stressed corporates make up ~40% of LFI Special Situations universe in May, but dealflow continues to fall – LFI data

EMEA Special Situations: Stressed corporates make up ~40% of LFI Special Situations universe in May, but dealflow continues to fall – LFI data

June 23, 20261 min Read More
MEA Construction Linked Companies
EMEA Special Situations: Construction-linked companies could face sub-optimal A&Es as macroeconomic headwinds bite

EMEA Special Situations: Construction-linked companies could face sub-optimal A&Es as macroeconomic headwinds bite

June 23, 20261 min Read More
Selecta
Selecta: Purposeful Opposition to the Motions to Dismiss

Selecta: Purposeful Opposition to the Motions to Dismiss

June 23, 20261 min Read More

Stay in the loop with the latest credit insights direct to your inbox