Double-dip

A financing structure providing multiple claim paths through borrower, guarantee and intercompany arrangements. These paths may support recovery but do not automatically double priority or permit recovery above the amount owed.

Double-dip in round numbers

Hypothetical: a lender funds US$20m of principal. A borrower loan supported by a guarantee and an intercompany claim creates additional recovery paths for that one financing. Assuming no interest or fees, aggregate recovery on the loan is capped at US$20m, not US$40m merely because two paths exist.

Source: Jefferies: double-dip claim paths and recovery limit.

Drop-down financing · Liability management exercise (LME) · Absolute priority rule · Uptier exchange · All of the glossary