In Round #12: More First Brands news; Jim Chanos opines on Private Credit & First Brands; Private Credit goes to Japan; Carlyle on U.S. National Debt; Checking the math on 19,000 PE firms; Private Credit 101; Private Credit 501; Discussing indestructible CLOs; Deals!
1. First Brands First
Alright debtageeks, I know you’ve probably read 50 articles about First Brands in the last few days, but some of the stuff coming out of this debacle is just so comical and absurd, I can’t pass on it.
First, according to Reuters (Free LINK), First Brands’ creditors include at least 517 CLOs. That’s a lot of CLOs…
Second, and likely because so many CLOs included First Brands loans in their portfolios, the Ad Hoc group formed to provide DIP financing in bankruptcy included 81 lenders and holders! (See Filing - free) Can you imagine a group call?! To be fair, not all of these 81 lenders are victims of First Brands’ shenanigans. Some of them, like Diameter Capital, took a position after the loans dropped bel…