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Cloud 9fin
Lycra stretches out for private credit
Nov 25, 2024
Stakeholders face tough choices as Lycra navigates a complex balance sheet while considering a private credit option. The podcast delves into the strategic dynamics of financing in tight markets, where private credit is becoming increasingly appealing. Listeners learn about the intricate negotiations and conflicts among bondholders and financial players involved in restructuring. Additionally, it highlights the risks and challenges of refinancing, showcasing the changing landscape of private credit that adapts to current economic pressures.
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Quick takeaways
- Lycra faces urgent financial pressures to refinance $1 billion in debt, exploring private credit as a potential solution despite higher costs.
- The rising appeal of private credit for distressed companies reflects a changing landscape, where lenders accept higher risks for lucrative returns.
Deep dives
Lycra's Debt Challenges
Lycra is facing significant financial pressure as it must refinance $1 billion in debt, including a super senior term loan due in February and additional notes due in the following months. Two ad hoc creditor groups have formed to address these concerns, as the company explores options for extending its debt. Much of the debt restructuring discussion centers on the potential involvement of private credit lenders, who may provide new funding to alleviate some of the financial burden. This represents a crucial moment for Lycra as its debt situation becomes increasingly urgent and complex.
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Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode