Xerox: Can Xerox Structure Another JV LME with Lexmark IP under its Credit Agreement and Outstanding Bonds?
Anthony P. Canale, J.D.: Global Head of Research - Covenant Review
12 March 2026
- Whether Xerox covenant structures permit another joint venture transaction using acquired intellectual property assets.
- How investment capacity calculations work under secured and unsecured debt documents after distributions.
- Which specific bond indentures contain restrictive provisions that could impact liability management transactions.
- What mechanisms allow companies to replenish covenant capacity through joint venture financing structures.
- How different creditor groups may be positioned under existing credit documentation for asset contributions.
The Bottom Line™:
Xerox recently announced a significant transaction involving a joint venture financing structure. This approach differs from traditional subsidiary-based financing arrangements.
Subsequently, market participants are closely watching for potential additional liability management transactions. Speculation centers on the company’s use of acquired intellectual property assets.
Independent analysts have assessed the value of specific intellectual property holdings. These valuations are based on various assumptions and methodologies.
Furthermore, covenant structures may permit further investment activities under existing credit documentation. Distribution mechanisms could potentially replenish available capacity for future transactions.
Meanwhile, outstanding unsecured bond indentures contain different restrictive provisions than secured debt. Various covenant features may influence the company’s strategic flexibility.



