Overview of the Transactions

The podcast discusses three similar transactions: search assignments, board writers, and Trimark. In all three cases, the borrowers amended their credit agreements with the consent of majority lenders to obtain super priority debt capacity. They then used this capacity for a debt-for-debt exchange with the majority lenders, relying on open market purchases. The credit agreements for board writers and Trimark also stripped the covenants. All three groups of minority lenders have sued, arguing that the transactions violated the pro-rata sharing provisions and were invalid.