Amend-to-extend deals have actually two stages, since the true title suggests.
The foremost is an amendment for which at the very least 50.1per cent regarding the bank group approves the issuerвЂ™s capacity to move some or all current loans into longer-dated paper. Often the amendment sets an assortment for the quantity which can be tendered through the brand new center, along with the spread from which the longer-dated paper will probably pay interest.
The newest debt is pari passu because of the loan that is existing. But it carries a higher rate and, in some cases, more attractive terms because it matures later and, thus, is structurally subordinated. Read more