This chapter explores the intricacies of a recent $2 billion first lien term loan and its impact on second lien notes. The conversation highlights how new secured debt can shift the dynamics for first lien lenders and create challenges for debtors, particularly in bankruptcy situations.
The Covenants and Americas Core Credit teams discuss Carnival’s new second lien notes, focusing on a mechanism that could cause a portion of the new notes to become unsecured.
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