RX Question about holding company vs. operating company
Got asked in an interview why debt in a holding company will trade higher than an operating company. Anybody have insight into this
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Wouldn't operating companies' debt trade higher due to structural subordination? I'll let a full-timer chime in, but I was under the impression that lenders to the subsidiary would get paid off before lenders to the parent company.
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Is HoldCo debt guaranteed by an OpCo senior to OpCo debt? Was thinking they would be pari
depends on how the documents read, safe to assume they would be pari but it really just depends. Sometimes senior, sometimes pari, sometimes it will be guaranteed by the equity (subordinated)
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