Deal Watch: Deals Abound, Debt Offerings Soar and Private Equity Firms Start Exercising
Deal work continues its up and to the right trajectory, while work constructing and litigating liability management exercises grows.
August 19, 2024 at 05:44 PM
11 minute read
The original version of this story was published on The American Lawyer
What You Need to Know
- Deal flow remains strong with eight deals over $1 billion as well as a $35.6 billion snack deal last week.
- But companies are still looking to find the cheapest debt and many companies owned by PE firms are utilizing liability management exercises to help that process.
All indicators point to continuing growth in deal flow through 2024, a welcome occurrence after years of uncertainty and lower-than-normal workloads. Last week saw one of the largest deals of the year, guided by a bevy of Big Law firms and strong showings in deal count of over $1 billion (eight) and debt offerings over $500 million (15).
Along with that deal flow, many private equity firms are looking for ways to maximize their returns in an environment with still high interest rates. One way to do that is to pit below-investment-grade bond and loan providers against one another when reshaping existing debt for the companies they own. They call this a liability management exercise, and it is designed to get the best possible terms from lenders when these companies restructure. The legality of some of these structures has been questioned, leading to litigation that some believe will only continue to get more and more testy as time goes on.
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- Skadden, Arps, Slate, Meagher & Flom LLP
- Stikeman Elliott
- Akin Gump Strauss Hauer & Feld
- Hunton Andrews Kurth
- Baker McKenzie
- Baker Botts
- Cleary Gottlieb Steen & Hamilton
- Davis Polk & Wardwell
- Cravath, Swaine & Moore
- Gibson, Dunn & Crutcher
- Gibbons PC
- Kirkland & Ellis
- Paul, Weiss, Rifkind, Warton & Garrison
- Paul Hastings
- Sheppard, Mullin, Richter & Hampton
- Simpson Thacher & Bartlett
- Willkie Farr & Gallagher
- Drinker Biddle & Reath LLP
- Jones Day
- Katten Muchin Rosenman
- Latham & Watkins
- Linklaters
- Norton Rose Fulbright
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