This week we continue our conversation with Neil Cummings, G. Thomas Stromberg and Richard Levin, partners at Jenner Block, an international firm with offices in Chicago, London, Los Angeles, New York, and Washington D.C.

The Lead Left: Can last out lenders acquire first out debt?

Neil Cummings: Yes. Typically, last out lenders can purchase first out debt in two circumstances. The first involves buyout rights. When a trigger event is ongoing, last out lenders with a specified portion of the last out tranche typically can purchase first out obligations, usually at par and often plus certain prepayment premiums. In some deals, the buyout trigger is any event of default,