Anastasia Beverly Hills completed its out-of-court recapitalization with an ad hoc group of first lien term loan lenders that satisfied all stakeholders and kept the company’s capital structure simple. Such an outcome is remarkable for those involved, considering the company dropped down IP assets in April 2025 as an apparent act of aggression to negotiate a restructuring with its lenders and later blew through its August 2025 maturity on more than $600m of term loan debt.
The recapitalization also marks a departure from previous iterations of LMEs that heavily favored majority lenders, created multi-layered capital structures, or simply delayed an equity wipeout in bankruptcy.
The key to an amicable resolution is usually cash, and in this case it came from the cosmetics company’s eponymous founder Anastasia Soare who contributed $225m of new money in exchange for 55% of the reorganized equity. It was substantial contribution from the individual investor—a larger equity check to buy back her own company out of distress than most sponsors are willing to write—that reflected her confidence in the underlying business and resolve to stay in control, according to a source.
The lenders received part of Anastasia’s contribution as a cash paydown and exchanged their remaining...
