Even when clients have clear strategic goals, there may be competing paths to achieving them. In addition, clients’ objectives may transform as market conditions change. One of the particular strengths of Simpson Thacher is our ability to address our clients’ evolving strategic needs and to coordinate multiple practice groups to respond to those changing needs. We are able to counsel clients through these strategic junctures not only because of our breadth of experience but also because we partner with our clients, getting to know their businesses, industries and business imperatives over time.
In several different contexts, we advise clients considering competing alternatives or facing changing paths. For example, when a company desires the flexibility of conducting a sales process concurrently with filing for an initial public offering, we are able to leverage our strengths in both IPO representations and mergers and acquisitions representations to advise them on both paths. We also regularly work with clients as they consider possible structures for joint ventures, spin-offs, split-offs, Reverse Morris Trusts and dividend recapitalizations; advise on a variety of approaches to restructurings; and counsel our clients as they consider alternate paths to resolving disputes.
Our work with one client illustrates our ability to structure innovative and pragmatic solutions through parallel paths and counsel clients as their needs evolve over time. We helped the client, whom we had advised on a landmark merger of equals, identify a solution when it was contending with a heavy debt load amidst the global liquidity and credit crisis. With $1 billion of the client’s debt coming due, refinancing options narrowing and the possibility of bankruptcy looming, we worked with the company’s lenders to restructure the company’s debt, negotiated with potential investors, and helped the client prepare for bankruptcy if financing could not be secured. Working across parallel streams, our team managed to negotiate a critical investment agreement that infused the company with capital. We have since continued to work with the client on a variety of M&A, financing and other matters.
Because of the Firm’s broad experience across different practice areas, we are able to advise clients on all strategic options—no matter the situation. Whether a company finds itself facing uncertain financing markets, refinancing complexities, changing industry dynamics or other difficulties, Simpson Thacher is adept at identifying and implementing unique and innovative solutions that help our clients meet and resolve their challenges.