One blocker to rule them all

A “poison pill” for liability management transactions? Enter “omniblockers”.

Over the last few months, I’ve been asked a ton about “omniblocker” terms, a new trend in capital markets deals. “Omniblocker” terms effectively aim to prevent liability management exercises. The broad language included in these blockers is designed to avoid all types of liability management transactions, with companies like Spirit Airlines, Trinseo, MultiPlan, Sinclair, and Altisource including blockers in term sheets and debt agreements in the last three months.

While these “omniblockers” offer potential for better risk management for lenders and investors, it's important to note that these terms have yet to be tested in court. We’re keeping an eye on the trend, but so far, borrowers have successfully prevented the terms from becoming widespread: of publicly filed high-yield credit issuances in 2025, only 4% include “omniblocker” terms.