Publication: Structuring Liability Management Transactions

Author: Anna Pinedo, Mayer Brown | Published: 9 Apr 2020
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LMBStructuring a transaction that addresses an issuer’s capital structure, including its debt obligations, financial and other covenant limitations, and debt maturity profile, involves compromise in some cases.

An appropriate liability management transaction that considers the issuer’s objectives and also provides sufficient incentives for existing security holders can be a delicate balancing exercise.

The topic is timely is as in the years following the financial crisis, low interest rates lead issuers to take on cheap debt, with some later refinancing through liability management transactions. Debt management exercises are expected to increase in the years to come.

In this publication,  Structuring Liability Management Transactions, Mayer Brown lawyers provide a summary of the US legal framework, including guidance provided in numerous no-action letters issued over many years, applicable to debt repurchases, tender offers and exchange offers. They also present some of the main regulatory and tax considerations that should be taken into account when determining the best approach.

Click  here to download a copy of the publication.

For further information, please contact:

Edward S. Best, partner, Chicago at

Thomas A. Humphreys, partner, New York, at

Anna T. Pinedo, partner, New York, at

Remmelt Reigersman, partner, Palo Alto, at