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The Default Notice – LMEnd and Extend

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Market Wrap

The Default Notice – LMEnd and Extend

9fin team's avatar
  1. 9fin team
20 min read

The Default Notice is 9fin's weekly newsletter, incorporating summaries and commentary from our US distressed coverage for the past week. Find out more about what we do for distressed here.

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In the not-so-distant past (2023), high interest rates and/or a difficult financing environment (post-GFC) would lead to a wave of companies getting agreements from their existing lenders to extend maturities on the existing facilities in exchange for some nominal fee. Lenders didn’t want to own, the companies were doing OK — if not great — and it would benefit all parties to just “kick the can”.

Also called variously, amend and extend (A&E), amend to extend (A2E), amend and pretend, pray and delay, the basic transaction is achieved by amending the existing credit facilities or sometimes striking a deal with existing lenders who would just exchange par for par into a similar facility with a more distant maturity in the hopes that a regular way refi or paydown gets done at a later date.

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