A 19-page institutional deep-dive into Better Health’s $700mm liability management exercise (LME). This report provides an overview of the company’s history and liquidity challenges, along with the originally proposed LME and rapid pivot to a new transaction model. Lastly, we’ll end with the surprising outcome for a small lender group that challenged the deal, and analyze how it shaped recoveries across the capital structure.
Better Health serves as one of the most exciting LME cases of 2025, as the company was weeks away from closing its uptier transaction when the Fifth Circuit ruled that its methodology was no longer viable, forcing the company to explore a brand-new extend-and-exchange transaction framework.
