Hedge Funds Find It’s Hit First or Get Hurt in Distressed Fights
- Non-pro rata uptiering ignites fresh wave of creditor conflict
- Deals blend elements of “priming” with preferential debt swaps
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First it was “drop downs.” Then came “priming.” Now, hedge fund titans have a new weapon of choice in the distressed debt battleground.
Sometimes referred to as “non-pro rata uptiering,” companies facing financial trouble including Rackspace Technology Inc. and Apex Tool Group are inking restructuring deals that provide select creditors with better terms on debt swaps than others.