Shearman & Sterling LLP
Issue link: https://digital.shearman.com/i/1494420
Drop-Down Transactions – Step 1: Formation/Designation (cont.) Company tactically designates or forms certain subsidiaries that may or may not be subject to existing reps and warranties and/or covenants within the existing debt documents. Company's selection may be impacted by a number of factors, including available investment and debt/lien capacity under various covenant baskets. 14 Restricted Sub I (Guarantor) Parent Company Restricted Sub II (Guarantor) Foreign Restricted Sub (Not a Guarantor) Unrestricted Sub (Not a Guarantor) Restricted Group Companies Note: All Restricted Group Companies are subject to representations, covenants and events of default of existing credit agreement and indenture. Liability Management and Refinancing Solutions in Europe