I'm not finding anything that says Citibank is a guarantor, only administrator, whatever that means. If Citibank did guarantee the loan, then Brigade has no need to fear Revlon's bankruptcy right, since they'd be able to collect from Citi. Unless they're worried that Citi is going to go under, which is another kettle of fish.
It is cash flow . Everyone is in a crunch , if revlon default on this loan, and then go under , getting money of anyone will take a long while .
Brigade gave the loan pre pandemic , under very different conditions , today they are probably happy with the money back.
It could also be that They may other liabilities of their own, where this liquidity could be useful.
Under normal market you want as little of money with you, money in the bank does not earn much , it is doubly important if you are in the business of making investments .
However in poor confidence conditions you want as much liquidity as you can have which is why everyone starts buying treasuries when markets go south .
