Jan 10, 2023
Our Lender Finance team has extensive experience in all aspects of structuring, negotiating and closing secured credit facilities provided to lenders and factors – and in representing our lender clients in connection with workouts, bankruptcies and other insolvency proceedings with respect to those transactions.
As a team with deep roots in commercial lending, our attorneys are distinctly suited to analyze the unique risks that lender finance transactions present and to help our clients manage those risks. We regularly assist lender finance clients in crafting borrowing base structures that leverage the lending portfolios of accounts receivable and inventory lenders, equipment and real estate lenders, healthcare receivables financiers, providers of supply chain financing, automobile lenders, consumer lenders, funds that purchase financial assets in segmented markets and participants in other specialized finance areas. We are experienced in analyzing collateral perfection issues, reviewing template documents employed by lender finance borrowers and in conducting diligence on loan portfolio collateral. As such, we are often called upon to represent financial institutions in connection with the purchase or sale of loan portfolios.
Our clients’ lender finance transactions range in complexity from bilateral transactions provided to community or specialized finance companies in smaller markets to syndicated credit facilities with complex intercreditor arrangements provided to regional players in the finance industry. Our clients include regional, national and international banks, commercial lenders, funds and other non-bank lenders, many of which have trusted us for decades
To provide big-picture thinking and attention to detail, our interdisciplinary team includes both lawyers who work exclusively on commercial finance matters and those who focus on bankruptcy, workouts and restructurings, real estate, tax and healthcare law. We can identify and address potential insolvency issues at the front and back end of every transaction.
When lender finance transactions become distressed, our Bankruptcy & Creditor Rights attorneys are available to deploy decades of experience representing financial institutions as secured lenders. They regularly handle debt restructurings, out-of-court reorganizations and bankruptcy cases involving large corporate and other commercial obligors, including lender finance borrowers. Working in tandem with our Commercial Finance attorneys, our team has represented numerous secured lenders in bankruptcies involving lender finance borrowers and are well-versed in the unique issues that such debtors raise. We also have represented a number of commercial lenders and insurance companies as debtors in insolvency proceedings.more
Our approach includes:
- Experience with a full array of transactions, such as asset-based lending, cash flow transactions, syndicated lending (agent, lender and borrower representation), bilateral loans, healthcare finance and trade finance
- Proficiency in structures involving multiple layers of institutional debt, complex intercreditor arrangements and payments in multiple currencies
- Deep secured lending experience to conduct diligence on loan portfolios, perfect security interests and mitigate lender risk with a variety of collateral pools
- Strength in complementary disciplines including bankruptcy, tax, real estate, corporate and healthcare
- Lean but effective staffing, combined with a more efficient rate structure than many Tier-One law firms
- Bench strength at every level
- Represented a national bank, as agent, in a syndicated $250,000,000 senior secured asset-based credit facility to a diversified independent financing company, with key business lines including factoring (both recourse and non-recourse), ledgered ABL, and supply chain finance.
- Represented agent bank in connection with a $720,000,000 receivables financing agreement to a special purpose entity, secured by defaulted credit card receivables.
- Represented agent bank in connection with a $75,000,000 senior secured cross-border asset based revolving credit facility to an international factoring and asset based lending company, secured by a portfolio of factored receivables and asset-based loans.
- Represented agent bank in connection with a $110,000,000 senior secured asset-based revolving credit facility to finance working capital needs of a well-known regional finance company, secured by a portfolio of asset-based loans, real estate and equipment loans, healthcare finance loans and factoring facilities.
- Represented agent bank in connection with a $62,500,000 senior secured asset-based revolving credit facility to an equipment finance company, secured by a portfolio of equipment leases.
- Represented agent bank in connection with a $22,000,000 senior secured asset-based revolving credit facility to a pharmaceutical royalty finance company, secured by a portfolio of loans secured by royalty receivables.
- Represented agent bank in connection with a $20,000,000 unitranche senior secured asset-based revolving and term credit facility to a factor, secured by a portfolio of factored receivables.
- Represented agent bank in connection with a $20,000,000 senior secured asset-based revolving credit facility to a finance company, secured by a portfolio of asset-based loans, term loans, equipment leases and loans, real estate loans, second lien loans and mezzanine loans.
- Represented agent bank in connection with a $15,000,000 senior secured term loan to a special purpose entity, secured by a portfolio of consumer loans and leases.
- Represented first-out lender in connection with a $40,000,000 unitranche senior secured asset-based credit facility to a special purpose entity, secured by a portfolio of specialty vehicle leases.
- Represented a major regional bank, as agent, in a syndicated $175,000,000 senior secured asset-based acquisition financing of a white label credit card provider.
- Represented a major regional bank, as agent, in a syndicated $575,000,000 senior secured asset-based credit facility to an independent trucking factor.
- Represented a major regional bank, as agent, in a syndicated $175,000,000 senior secured asset-based credit facility to a used car dealer floorplan financing company.
- Represented super-regional bank in connection with transferring the agent role from another financial institution and restructuring a $110,000,000 senior secured asset-based credit facility provided to a financing company providing secured loans (accounts receivable and inventory financing) and factoring facilities to lower middle market commercial customers.
- Represented the agent bank in connection with a $100,000,000 senior secured asset-based revolving credit facility to a provider of consumer loans backed by consumer goods and automobiles (including autos in Europe), with a customer focus on U.S. military personnel.
- Represented the sole lender bank in connection with $7,000,000 senior secured asset-based credit facility provided to a financing company providing secured loans (accounts receivable) and factoring facilities to small-to-medium sized corporate borrowers.
- Represented the agent bank in connection with a $15,000,000 senior secured asset-based revolving credit facility to a provider of construction, improvement, renovation, and acquisition loans secured by real property collateral.
- Represented the junior lien creditor in a workout and Article 9 foreclosure sale of a company that extended loans secured by high-end artwork.
- Represented agent for senior secured bank group, in the chapter 11 bankruptcy case of Summit Financial Corporation, a finance company. focusing on the subprime auto lending industry, in the Southern District of Florida. Representation involved defaults under a $110,000,000 syndicated asset-based revolving credit facility, cash collateral disputes, and facilitating collection of the portfolio through the confirmation of a Chapter 11 plan of liquidation.
- Represented lender to longstanding payday lender in connection with the sale of payday loan portfolio in chapter 11 case.