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ARTICLE · 03 APRIL 2020

Debt Buyback And Liability Management Considerations

A&O Shearman
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As the markets continue to react to the COVID-19 pandemic, the trading prices of many corporate loans and bonds have fallen dramatically.

United StatesFinance and Banking
A&O Shearman
A&O Shearman
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As the markets continue to react to the COVID-19 pandemic, the trading prices of many corporate loans and bonds have fallen dramatically. As a result, many companies (or their private equity sponsors) are looking at repurchasing their debt at a discount. In addition, many companies are concerned that the impact of the COVID-19 pandemic will result in covenant breaches or other defaults1 and engaging in discussions with their lenders and investors to obtain needed modifications to their debt agreements.

This client alert highlights certain key issues companies should consider when considering potential debt buybacks and amendment/liability management exercises.

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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