In private credit, banks are ‘quietly preparing for some distress on the horizon’ by requiring ever-stricter legal terms for debt-ridden companies

In private credit, banks are ‘quietly preparing for some distress on the horizon’ by requiring ever-stricter legal terms for debt-ridden companies

In September of this year, JPMorgan helped Coherent Corp—a maker of lasers and optical equipment—refinance some of its debt with a new $1.25 billion private credit loan and a $700 million “revolving” credit facility. The deal contained a newly trendy clause in its legal paperwork: a “J.Crew blocker.” The term refers to a 2017 incident in which the preppy clothing chain, under pressure from its creditors, utilized a “trap door” maneuver in which …

Private credit fund structure important

SMSF investors must recognise the different approaches private credit fund managers take before making a portfolio allocation to one.