Language to prevent ‘net short’ debt activist investors manipulating distressed corporates to benefit CDS positions could prove ineffective in bond documentation, shutting down the changes almost as soon as they have been introduced in the market.
Two deals so far seem to have the anti-short seller language — financing for Clayton, Dubilier & Rice’s buyout of US tech firm Sirius Computer Solutions, and for Blackstone, CPPIB and Kirkbi’s buyout of UK amusement park operator Merlin Entertainments.
In both cases, Chicago-based law firm Kirkland
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: email@example.com
Or sign up for a trial to gain full access to the entire site for a limited period.
To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: firstname.lastname@example.org or find out more online here.