The first half of 2026 underscored the growing importance of capital solutions. Sullivan & Cromwell’s Capital Solutions team advised capital solutions providers, public and private companies, and private equity sponsors on a range of sophisticated transactions designed to optimize capital structures, create strategic flexibility and address liquidity needs. The first half of the year highlighted the strength of our practice, advising on well over 50 new capital solutions matters. This report highlights certain notable matters led by S&C in the first half of the year.
Notable Matters
Progressing Cybersecurity, Software and Defense Technologies
Optiv Security 1L Lenders – Liability Management Transactions
S&C represented the ad hoc group of first lien lenders, led by Canyon Capital and Silver Point Capital, in structuring and negotiating comprehensive debt restructuring transactions relating to Optiv, a global cybersecurity consulting and solutions integrator. Many of the features included were “first of their kind” and the structure has received significant focus by the market.
Shield AI – Hybrid Equity Financings
S&C advised aerospace and defense technology company Shield AI in its $2 billion strategic financing for its acquisition of defense software company Aechelon Technology Inc. The financing consisted of a $500 million hybrid preferred equity financing from funds managed by Blackstone and a $1.5 billion equity transaction at a $12.7 billion post-money valuation led by Advent International and co-led by the Strategic Investment Group of JPMorganChase’s Security and Resiliency Initiative.
Saronic Technologies – Financings for Autonomous Maritime Technology
S&C advised autonomous maritime technology company Saronic Technologies as it entered into financing arrangements and completed the initial closing of its Series D Preferred Stock financing round, which involved commitments for up to $1.75 billion, valuing Saronic at $9.25 billion.
Leading Capital Solutions Provider – Confidential Matter Involving Software Spinoff
S&C advised a leading capital solutions provider in providing a $500 million capital solution to a sponsor acquiring a controlling interest in a software company spinoff. Given the dislocation in the software sector, the transaction required a bespoke capital solution.
Advancing Life Sciences
Sixth Street Partners – BridgeBio Pharma Convertible Preferred Equity Investment
S&C advised Sixth Street as the lead investor in a $1 billion convertible preferred equity investment in BridgeBio Pharma. The transaction preserved full common equity treatment. This was the largest capital solutions style preferred stock transaction by a public company in the life sciences sector in 2026.
Bausch Health Companies – Liability Management Transactions
S&C advised Bausch Health Companies on its exchange offers for its 4.875% Senior Secured Notes due 2028 and 11% Senior Secured Notes due 2028 for up to $1.6 billion of new 10% Senior Secured Notes due 2032. The offers were oversubscribed with $2.7 billion tendered and accepted. The transaction formed part of BHC’s broader liability management of its intermediate term debt.
Blackstone Financings – BioCryst Pharmaceuticals and GeneDx
S&C advised client Blackstone in two financing transactions with public companies focused on combatting rare diseases. In one transaction, Blackstone provided financing to BioCryst to acquire Astria Therapeutics, a leader in hereditary angioedema. In the second transaction, financing was provided to GeneDx, a publicly traded company specializing in genomic diagnostics.
Oaktree Capital Management – Establishment Labs
S&C advised Oaktree Capital Management in connection with its $300 million debt financing transaction to Establishment Labs, a public company focused on global medical technology dedicated to improving women’s health and wellness.
Powering Communications, Connectivity and Energy
Prepetition/DIP Secured Creditors – TPI Composites Chapter 11
S&C represented the senior secured lenders of a $393 million term loan and DIP lenders in the chapter 11 cases of TPI Composites, an advanced composite wind turbine blades manufacturer, which filed for chapter 11 in August 2025 and consummated sale and plan transactions in May and June 2026. In addition to structuring the sale and plan transactions, S&C also successfully defended the 2023 liability management transaction between the Company and the secured lenders in litigation brought by the Unsecured Creditors’ Committee. That transaction, which was structured by S&C, was the first uptier of preferred stock into secured debt at a public company.
Helix Strategic Fund – Liberty Puerto Rico Unrestricted Subsidiary Financing
S&C advised Helix Partners Management as a new money lender for an incremental first lien pari passu debt financing to a subsidiary of Liberty Puerto Rico. The financing builds on the Company’s September 2025 liability management transaction, in which Liberty Puerto Rico contributed network and spectrum cable assets to the subsidiary that now secures these new loans.
CONX Corp. – HC2 Broadcasting Acquisition and Bridge Financing
S&C advised CONX in providing a senior secured bridge loan to HC2 Broadcasting. The loan was used to repay HC2’s senior spectrum-secured notes and repurchase equity from certain noteholders. The financing was the first step in a broader acquisition strategy under which CONX will acquire a 75% equity interest in HC2 Broadcasting from its parent, INNOVATE Corp.
Propelling Brands and Entertainment
Oaktree Capital Management – Empower Brands and Spectrum Brands
S&C advised Oaktree Capital Management in connection with the drop-down of Spectrum Brands’ Home & Personal Care business (Empower Brands). In connection with the transaction, Oaktree financed the drop-down via secured debt and structured equity. As a result of the transaction, Oaktree became Empower Brands’ senior secured lender and acquired a 27% stake in the Empower Brands business.
AMC Networks – Bond Exchanges
S&C advised AMC Networks on a comprehensive liability management transaction in a series of exchange offers with its various outstanding secured bonds, which resulted in pushing out their maturity wall from 2029 to 2032. The exchanges were effectively structured to maximize participation and provide significant runway.
Developing Digital Infrastructure
Broadcom – $35 Billion Capital Solution with Apollo and Blackstone to Accelerate AI Compute for Anthropic
S&C advised Broadcom, a semiconductor and infrastructure software solutions leader, in creating a new model for mobilizing institutional capital at the scale required to meet the demands of AI infrastructure by establishing the AI XPV Platform with Apollo and Blackstone as initial anchor investors. The platform is designed to enable more than 20 gigawatts in compute capacity using Broadcom’s XPUs and networking solutions customized for leading frontier AI labs, including Anthropic and OpenAI, through 2028.
Restructuring Real Estate
Golden Wheel Creditors – Innovative Offshore Public Debt Restructuring
S&C led a group of creditors in designing an innovative structure for the offshore debt restructuring of a Hong Kong-listed Chinese real estate company, Golden Wheel Tiandi Holdings. This is the first creditor-led drop-down restructuring of publicly traded USD notes in the China real estate space.
Unlike many amend-and-extend exercises in the market, S&C successfully improved the creditors’ position by moving their claims closer to real assets through asset pledge, cash sweep, meaningful corporate governance and operational level control. Together with the creditors, S&C successfully addressed the key limitation in the real estate offshore debt restructurings, including creditors often being (and remaining) structurally subordinated without any direct claims against onshore assets.
Industry Recognition
Awards
- Chambers Ranked –
- USA Banking and Finance: Ari Blaut
- USA Private Credit: Ari Blaut
- USA Bankruptcy: Jim Bromley and Andy Dietderich
- USA Corporate/M&A: Private Equity: Rita-Anne O’Neill
- UK Restructuring/Insolvency: Kon Asimacopoulos and William Needham
- UK Leveraged Finance: Big Ticket: Chris McLaughlin and Alastair McVeigh
- UK Capital Markets: Chris Beatty
- Germany Banking & Finance: Max Birke
- Bankruptcy Firm of the Year (2026) – Benchmark Litigation
- Fifty Most Influential Lawyers – Financial News: Kon Asimacopoulos
- Hot 100 – The Lawyer: Aprajita Dhundia
- Rising Star (Bankruptcy) – Law360: Ben Beller
- The A-List: Growth Drivers – China Business Law Journal: Jacqueline Tang
Press
In The American Lawyer article “With LMEs Primed for Growth, Will Consolidation Among Clients and Firms Come with Risk?” Ari Blaut discussed the continued growth of capital solutions and liability management transactions, and described the practice area as “a rocket ship” that has grown at an exponential rate.
Looking Ahead
We are sincerely grateful to our clients for trusting us with their important matters and thank everyone who has contributed to these results. We look forward to continued collaboration and shared success.
Global Capital Solutions Key Contacts
United States
Ari Blaut, Head of Capital Solutions
Ben Beller, Partner, New York
Christian Jensen, Partner, New York
Pat Brown, Partner, Los Angeles
Rita O’Neill, Partner, Los Angeles
Pete Jones, Partner, Palo Alto
Europe
Chris McLaughlin, Co-Head of Capital Solutions London
Alastair McVeigh, Co-Head of Capital Solutions London
Max Birke, Head of Capital Solutions Germany
Kon Asimacopoulos, Partner, London
William Needham, Partner, London
Aprajita Dhundia, Partner, London
Olivier de Vilmorin, Partner, Paris
Asia-Pacific
Jacqueline Tang, Co-Head of Capital Solutions APAC
Chris Beatty, Co-Head of Capital Solutions APAC