A Transaction, Intellectual Property, and Company Projections

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This chapter explores a transaction where a company issues new notes with a security package including intellectual property, affecting existing bondholders. It also provides insights into the significance of intellectual property to the company and updates on its liquidity and future growth projections.

Announcing a refinancing on the day your debt matures is an unusual move — and indeed, Lycra’s refinancing stretched some boundaries. But it’s also a great example of how not all drop-down transactions are the same.

For this week’s episode of Cloud 9fin, Bianca Boorer sat down with Brian Dearing to discuss Lycra’s last minute refi of its 2023 notes. The company’s innovative variation on the infamous drop-down mechanism provides food for thought on flexible liability management techniques.