Davis Polk partner Sanders Witkow was quoted in 9fin discussing a trend of some direct lenders offering acquiring sponsors an opportunity to upsize portable debt with an extra delayed-draw term loan (DDTL) to remain competitive. 

The article noted that sponsors can use the DDTL to increase the portable debt package without renegotiating terms with lenders.

Sanders explained, “The acquiring sponsor is not bound to the pricing in the portable debt, however, because it may choose to source its own debt package.” 

“[Should spread continue to fall] buyers can always go out to the market again at that time,” he added.

“Direct lenders seek edge by offering DDTLs to incoming sponsors,” 9fin (January 21, 2026) (subscription required)

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