Double luxo structure meaning

A double Luxco structure is a common acquisition finance arrangement for buying French targets, under which two Luxembourg holding companies are inserted above the French acquisition vehicle (BidCo). It is a market term, not defined in legislation or case law, and is used consistently by practitioners in England & Wales, Scotland, Northern Ireland and Ireland. Typically, the top Luxembourg company owns a second Luxembourg company, which holds the shares in the French BidCo. Lenders take Luxembourg-law share security, usually a pledge granted by the top Luxco over its shares in the lower Luxco (often complemented by pledges over bank accounts and intra-group receivables). On enforcement, lenders can realise the Luxembourg security—by appropriation or private sale under Luxembourg law—to obtain control of the holding chain without enforcing in France. The structure’s practical significance is to provide a more predictable and creditor-friendly enforcement route than French law processes, which can be slower and feature stronger borrower protections. It is frequently used in leveraged buyouts and unitranche or high-yield financings of French businesses arranged out of London or Dublin, and sits alongside English-law (or Irish-law) governed facility and intercreditor documentation.