Damian Schaible discusses double-dip financing with WSJ
Davis Polk partner and Restructuring co-head Damian Schaible was quoted in the Wall Street Journal on double-dip financings, which are loans that allow companies to create two separate claims on their assets. The article notes that double-dip loans have become a popular tool to refinance short-term debts and improve liquidity as interest rates rise.
“The market is currently littered with companies that have too much leverage and have floating rate debt that is coming to roost in a higher interest rate environment,” Damian explained. “There’s going to be more and more companies that run into liquidity pressures and are looking for ways to bring in additional capital.”
“The Latest Tool to Refinance Short-Term Debt: Double-Dip Financing,” Wall Street Journal (October 13, 2023) (subscription required)