Credit Agreements and Post IPO Dividend Baskets for Companies Benefiting from the Pandemic

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Exploring the impact of post IPO dividend baskets and credit agreements on companies benefiting from the pandemic, including the ability to pay dividends based on inflated market capitalization and incur contribution debt equal to 200 percent of IPO proceeds.

On this week’s podcast the Americas Core Credit by Reorg team discusses highlights from this week as well as a look ahead at the upcoming week, plus this week our podcast features a discussion on (a) how certain companies that actually benefited from the pandemic (grill companies, pool companies, home improvement businesses) took advantage of the recent spike in performance by borrowing money, using the proceeds to pay their owners a dividend, and then taking the company public and (b) how these companies and their lenders could be in trouble once consumer behavior reverts to pre-pandemic levels. If you are not a Reorg subscriber, request access here: go.reorg-research.com/Podcast-Trial