(Bloomberg) -- Chris Stansbury may have been the most hated person in the room as he made the rounds at one of Wall Street’s biggest leveraged finance...
-- Chris Stansbury may have been the most hated person in the room as he made the rounds at one of Wall Street’s biggest leveraged finance conferences late last year.A Loud Warning From the Past About Living With Cars
Backing the transaction was the upstart Diameter Capital Partners, a growing force in credit markets with about $20 billion in assets. The New York-based firm founded by Scott Goodwin and Jonathan Lewinsohn, like virtually everyone else, could tell that Lumen’s debt situation was dire. “The idea of pitting creditors against creditors is offensive. It becomes a giant game instead of priority of claims,” said Bill Zox, a portfolio manager at Brandywine Global Investment Management. “It bought the company more time and they engineered some theoretical value at a time of euphoria around artificial intelligence.”
It was May of last year when Diameter’s Goodwin took the virtual stage and pitched Level 3 as a top trade idea at the Sohn Investment Conference. Its bonds, he argued, were undervalued largely because of the struggles of its parent company, which had about $20 billion in long-term debt. Level 3 had a manageable debt load and more favorable revenue mix than other communications firms.
“It’s really about jockeying to be one that gets the better deal versus the one that’s getting the worse deal,” said industry veteran Jason Mudrick, who oversees more than $3 billion and wasn’t involved in the trade. “People on the wrong side of the deal are losing. They’re getting value extracted from them into the hands of the creditors on the other side of the deal.”
For its role hammering out the restructuring, Diameter and other negotiating creditors earned hefty fees on top of claims to the company’s best collateral. Diameter acknowledged in its letter to investors that the market saw the deal as “fratricidal” and one that companies would never have done in the past because it erodes trust across the market.
ESPN's Adam Schefter sparks Travis Kelce and Taylor Swift engagement theories after he didn't answer a question Sitcomus rebootus! Wizards Beyond Waverly Place, a continuation of the classic sitcom Wizards of Waverly Place, is not only happening at Disney Channel and Disney+, but it’s now just a few weeks away. Wizards Beyond Waverly Place will have a two-episode linear debut on Tuesday, Oct. 29, at 8/7c on Disney Channel, the network announced …
Silver Point Bloomberg The Lumen Creditors Diameter Chris Stansbury Telecommunications Company Hamza Lemssouguer’S Arini
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