Debt finance post-lockdown: Prepare for the worst, hope for the best

The debt markets were dominated by amendments and waivers, extension requests and short-term loan facilities earlier this year. We helped clients across the credit spectrum amend and restructure their debt capacity. Many of our clients also accessed the UK Government’s support initiatives, including the CCFF and the CLBILS. Our takeaways from the COVID-period financings are summarised in our June Briefing, Lessons from Lockdown.

Refinancing requirements are anticipated to peak in 2022/23. There also remains the possibility of many companies requiring a second round of COVID-financing. There is the potential for debt markets to become quite crowded again in the relatively near future. A number of our clients are already starting to re-evaluate financing arrangements put in place in the initial stages of the lockdown period, from both public and private sources.

You can also download a copy of our briefing here.