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Strategic Debt Options for European Issuers in the Time of COVID-19

Client memorandum | April 22, 2020

The COVID-19 pandemic has resulted in extreme market dislocations that have strained cash flows and threatened debt servicing capacity for many European corporates. At the same time, market disruptions have led to pricing discounts for outstanding debt and perhaps greater investor tolerance for issuer/borrower requests. As such, there is a strategic opportunity for both distressed and non-distressed companies to proactively engage in liability management transactions to arrest the impact of overleverage on balance sheets. In this presentation, we outline several strategic options that corporates may wish to consider in light of existing conditions, including debt purchases through a variety of means, consent solicitations, equitization, schemes of arrangement and new issuances to fund buybacks.

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This communication is for general information only. It is not intended, nor should it be relied upon, as legal advice. In some jurisdictions, this may be considered attorney advertising. Please refer to the firm’s data policy page for further information.