Navigating Execution Risks in Liability Management

“Even if we hear rumblings that NDAs are out there with third parties and private lenders are looking at assets,... we’re still in a position where — why wouldn’t they come back to us — because we have more to give,” said Patrick McGrath, partner at Anchorage Capital. “If I’ve invested in a structure and I have a group, I can give them more time. That’s valuable. I can address interest rates. I can probably provide the money a little bit cheaper and I can give them certainty as opposed to them saying I’m going to finance the business away.” McGrath sat down with Bloomberg Intelligence analysts Phil Brendel and Negisa Balluku at the Wharton Restructuring & Distressed Investing Conference last month (8:00). He dove into the intricacies of liability management exercises, including the asymmetry of information, discerning whether “deals away” are credible, and the importance of institutional reputation.

Prior to that, BI’s Noel Hebert and Brendel discuss how March may shake up complacent high yield and syndicated loan markets. The podcast concludes with a BI roundtable discussion covering J&J, Franchise Group, Spirit Airlines, Yellow, Ardagh, WW International, and Serta Simmons (1:14:20).