Liability Management Webinar Series: Episode 2: Drop-Downs

Presenters:
Anthony P. Canale, J.D., Global Head of Research, Covenant Review
Scott Josefsberg, J.D., Head of U.S. High Yield Research, Covenant Review
Ian Y. Feng, J.D., Senior Director, U.S. Leveraged Loans, Covenant Review

Our three-part series will provide a comprehensive examination of the major LMT strategies employed in the market today, analyzing recent litigation outcomes, emerging transaction structures, and practical market responses. Gain critical insights to better identify risks in credit documents, understand potential recovery implications, and position yourself advantageously in today’s complex liability management landscape.

Ep2. Drop-Downs

• Drop-Down Mechanics: Comprehensive breakdown of value transfer strategies to non-credit parties.
• Structural Vulnerabilities: Identification of enabling provisions in credit documents that facilitate drop-downs.
• Investment Capacity Analysis: Analysis of “J. Crew Trapdoor” baskets, free-flow-of-value provisions, and the “Black Hole” concept.
• Defensive Strategies: Discussion of “J. Crew blockers,” “Pluralsight blockers,” and other market responses.