The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Sebastian Pellejero

NEW YORK, March 3 (Reuters Breakingviews) - Aided by TPG’s credit arm, the declining printer brand pulled off a tricky reshuffle, borrowing $450 mln against intellectual property and issuing warrants to draw debtholders into a haircut. Capital-flush private lenders may help yet more stragglers spring such surprises.

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CONTEXT NEWS

Print and digital solutions provider Xerox said on February 17 it had raised $450 million through a joint venture with investors led by TPG. The transaction consists of $405 million of senior secured term loans and $45 million of preferred equity. The company contributed certain intellectual property assets to the JV, including trademarks related to the Xerox brand, and will continue to use them under a long-term licensing arrangement.

Separately, Xerox issued warrants on February 12 to shareholders that give them the right to buy shares at a fixed price through 2028. The warrants can be exercised with cash, or in some cases, by surrendering certain Xerox bonds.