When half a defense is no defense at all
Most deals guard one door—IP or subsidiaries—but leave the other wide open.
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Have you ever watched someone install expensive door locks—but leave their windows open? 🔒
Our Q1 '25 data reveals a shocking gap in credit protections that's costing lenders millions.
Since J. Crew’s infamous 2016 IP heist, two defenses have emerged:
- Prohibitions against moving valuable IP assets (now in 24% of deals)
- Restrictions on restricted subsidiary designations (now in 23% of deals)
The alarming truth? Only 12% of deals include both protections.
This matters because:
- Companies with only IP transfer restrictions can still move entire businesses outside the credit support (just ask Neiman Marcus about MyTheresa)
- Companies with only subsidiary restrictions can still transfer valuable IP out of the credit group
It's not about closing one door—it's about securing the entire house.
Download Noetica's complete Q1 ‘25 Capital Markets Radar Report for more.
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