Cases & Deals

Bentley School bondholders negotiate replacement bonds to satisfy long-term and short-term investment goals

Clients Ad Hoc Committee of Bentley School Bondholders

Jones Day served as counsel to the holders of the majority of outstanding tax-exempt bonds benefiting The Bentley School, a private day school with campuses in Berkeley and Lafayette, California, in a 2010 deal to restructure the bonds before The Bentley School defaulted on its obligation to pay debt service. On behalf of the bondholders, Jones Day worked with The Bentley School to effect a tender and redemption of the outstanding bonds and the issuance of new tax-exempt bonds in their place. To meet the bondholders' diverse investment strategies, Jones Day negotiated replacement bonds with features designed to satisfy long-term and short-term investment goals, including a series of zero-coupon bonds supplementing a fixed rate series.

Jones Day lawyers worked closely with the bondholders and with The Bentley School to structure the transaction to permit The Bentley School to continue operating without filing for bankruptcy, while at the same time compensating the bondholders for giving The Bentley School more time to repay its debt.

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