Distressed

It is common for highly levered sponsor-backed companies with liquidity needs and/or upcoming maturities to engage in liability management exercises, which often includes creating a new priming tranche of secured debt (an “Uptier”) or transferring assets out of the secured collateral package (a “Drop Down”).

Economic headwinds led to depressed equity valuations across the De-SPAC universe. Are these now viable acquisitions for public companies seeking alternative financing?