What does it actually mean when a borrower “loses market access”?
Is that an implied thing, or a formal thing? I understand it to mean that refinancing debt is effectively out of the question, due to distress, vis-a-vis investment banks and real money investors. Is that right?
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Generally an implied thing, but your explanation is broadly correct. If you’re too risky there is no point pouring capital into a problem.
I'd interpret it as no access to a re-fi or new money in the "capital" markets / syndicated products (incl banking). I wouldn't broaden it to private credit / special sits which is probably where one such borrower would turn to.
Agree with the above. I interpret "no market access" as an inability to hit the syndication market for a "on the run" financing and an alternative solution is required. It usually means a material re-rate in the borrower's cost of capital is imminent. Doesn't have to involve a bankruptcy.
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