LCDS Market Update: Successful Test of Amended Successor Provisions

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November 6, 2013

The amended “successor” reference entity provisions implemented in connection with the launch of Bullet LCDS in 2010 were first tested this year in connection with a merger involving United Air Lines, Inc. and a loan refinancing involving Dynegy Power, LLC.

In this memorandum, RK&O attorneys Jennifer Grady and Richard J. Lee describe the amended provisions and determination procedures that have proven to be successful in reducing the risk of “orphan” contracts by addressing the unique nature of loan refinancing structures.

Click here to read the memorandum