Shearman & Sterling LLP
Issue link: https://digital.shearman.com/i/1494420
Liability Management – What are the Options? (cont.) In exchange for more favorable terms under existing or new financings, borrowers offer inducements to new and/or existing lenders/noteholders in the forms of: • Structural seniority, or "Drop-Down" Financings • Lenders provide structurally senior financings secured by assets outside the existing collateral package through the use of unrestricted or non-guarantor subsidiaries • Examples: Travelport, Revlon, J. Crew, Cirque du Soleil, Chewy, Intralot • Contractual seniority, or "Uptiering" Transactions • Lenders/noteholders enhance the priority of their claims under an existing collateral and guarantee package, typically in connection with and in consideration for providing new money "priming" debt • Examples: NYDJ, Serta Simmons, Murray Energy, Boardriders, TriMark, Wesco Aircraft, Envision Healthcare, Keter, Diebold Priming Transactions 8 Liability Management and Refinancing Solutions in Europe