Partner Shai Schmidt recently spoke to The Wall Street Journal about the rise of LMEs and what he is seeing in the market. “Literally every week lenders reach out to us for guidance on new liability management candidates. Often these are lenders who find themselves excluded from debt restructuring negotiations led by majority lender groups.”
According to the article, U.S. companies are leveraging LMEs to raise new capital and extend debt maturities while also avoiding costly chapter 11 filings. In 2024, the number of LMEs more than doubled from 2023, growing from six to 15. Industry experts suggest that the popularity of LMEs could grow even more in 2025, depending on changes in benchmark interest rates and global trade tensions.
Read more in the Wall Street Journal (subscription required).