Actionable Ideas

Three major issues that should be on the mind of decision makers’ as they prepare for next year are: Regulatory scrutiny, counterparty risks and new launch landscapes.

It is common for highly levered sponsor-backed companies with liquidity needs and/or upcoming maturities to engage in liability management exercises, which often includes creating a new priming tranche of secured debt (an “Uptier”) or transferring assets out of the secured collateral package (a “Drop Down”).

With a mix of economic and market headwinds prevailing against M&A activity in 2022 and 2023, financial sponsors’ exits have been expectedly muted. As such, many sponsors have resorted to fundamental buy and build strategies to create value over a longer time period.

The convertible debt new issue market in 2023 has been frequented by companies seeking a lower cash interest alternative to what is being offered in the high yield and investment grade debt markets. 

The new universal proxy card (“UPC”) rules took effect last year, making the 2023 proxy season the first in which both company and dissident nominees were listed on the same ballot, allowing shareholders to choose among the different candidates in a contested election.

Corporations and PE firms are increasingly partnering up on acquisitions. What makes these transactions attractive?

As activism evolves into a mature asset class, the field grows crowded.

Economic headwinds led to depressed equity valuations across the De-SPAC universe. Are these now viable acquisitions for public companies seeking alternative financing?