Xerox: Frequently Asked Questions on Potential LMEs under its Secured Bonds

Xerox: Frequently Asked Questions on Potential LMEs under its Secured Bonds

Anthony P. Canale, J.D.: Global Head of Research - Covenant Review

6 March 2026

Download the Full Report to gain insights on:
  • How secured bond documents may limit certain liability management strategies and asset transfers.
  • What “sacred rights” protections could mean for amendments involving collateral and subsidiary structures.
  • How joint venture structures might be used differently than unrestricted subsidiary approaches.
  • Which proposed transaction paths could face the strongest pushback under the secured indentures.
  • What to monitor as creditor coordination and market speculation continue to evolve.

The Bottom Line™:

Market chatter suggests Xerox could pursue additional liability management moves under its secured bonds. Investors are focused on whether amendments could pass with limited bondholder support.

Subscriber questions have centered on multiple potential LME structures and document flexibility. This report addresses how the secured indentures may shape those outcomes.

Attempts to shift assets into an unrestricted subsidiary face meaningful constraints in the indentures. However, consent mechanics can become decisive when collateral-related provisions are implicated.

A move of assets into a non-guarantor restricted subsidiary could enable alternative financing structures. Yet the secured indentures contain provisions that may block certain intercompany-based approaches.

Another pathway involves issuing new debt with claims spanning both legacy and transferred-asset entities. Therefore, the indenture language may still create formidable hurdles for that structure.

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