Anthology launched a liability management deal negotiated by an ad hoc group of first lien lenders, according to 9fin sources.

The deal for the Veritas-backed company entails raising $250m in new first out debt at a 98 OID, and exchanging existing first lien debt into a combination of new first out and second out debt with tightened documentation, sources said. The deal anticipates a potential for further exchanges of the existing second lien term loan into third out debt. Any first and second lien lenders who do not participate in either transaction would potentially effectively become fourth and fifth out, respectively.