Asset-Based Lending: Navigating Borrowing Base, Article 9 Collateral Issues, Key Provisions
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will discuss asset-based lending (ABL) transactions, including issues associated with the borrowing base, obtaining and perfecting a security interest in the assets under the UCC, and essential terms in the ABL documentation. The speakers will discuss ABL facilities for restructurings, special situations, debtor-in-possession facilities, and exit facilities. The speakers will also discuss the impact of the current state of financial markets on ABL deals.
Outline
- Types of ABL facilities
- Borrowing base
- Accounts receivables
- Inventory
- Equipment
- Cash
- Obtaining and perfecting a security interest in assets under UCC Article 9
- Loan documentation
- Reserves and dilution
- Reporting
- Conditions precedent to drawing on the revolver
- Cash management
- Financial covenants in ABL deals
- Split collateral intercreditor agreements
- The impact of the current financial market on borrowing base deals
Benefits
The panel will review these and other relevant issues:
- Critical issues with different assets in the borrowing base
- Obtaining and perfecting a security interest in the assets under UCC Article 9
- Cash management provisions and deposit account control agreement in ABL loan documentation
- Split collateral intercreditor agreements
Faculty
Katherine E. Bell
Partner, Corporate Department
Paul Hastings
Ms. Bell's practice focuses on commercial and corporate finance transactions. She regularly represents... | Read More
Ms. Bell's practice focuses on commercial and corporate finance transactions. She regularly represents commercial banks, investment banks, finance companies, other lenders, and borrowers in working capital facilities (cash flow and asset-based), acquisition financings, structured financings, and other leveraged finance transactions including leveraged buyouts, restructurings, and recapitalizations. She has significant experience negotiating intercreditor relationships, including 1st Lien/2nd Lien transactions, split collateral arrangements, and unitranche “A/B” transactions.
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Stacy Hopkins
Of Counsel
Paul Hastings
Ms. Hopkins’ practice focuses on commercial finance and creditors’ rights. She advises clients on... | Read More
Ms. Hopkins’ practice focuses on commercial finance and creditors’ rights. She advises clients on structuring, negotiating, and documenting cash flow and asset-based transactions across all lifecycles of a loan. While she has a deep knowledge of healthcare finance, given her prior business experience, Ms. Hopkins also has industry expertise in other business sectors, such as casinos, restaurants, media, manufacturing, and entertainment. In addition, Ms. Hopkins has extensive experience structuring and documenting unitranche and split collateral deals. Prior to rejoining the firm, Ms. Hopkins served as Senior Vice President in the Healthcare Finance group at Wells Fargo Commercial Capital. In this role, she led the negotiation, documentation, and execution of all transactions (asset-based, cash flow, and real estate) for the group across a variety of healthcare sectors. Prior to her tenure at Wells Fargo, Ms. Hopkins was a partner in Paul Hastings’ Finance Practice, advising commercial finance companies, hedge funds, and banks on leveraged loans, asset-based financings, debtor-in-possession financings, syndications, and leasing transactions in a variety of sectors.
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Jesse T. Kirsch
Partner
Paul Hastings
As a member of the Financing and Restructuring Group, Mr. Kirsch’s practice focuses on the representation of... | Read More
As a member of the Financing and Restructuring Group, Mr. Kirsch’s practice focuses on the representation of leading commercial and investment banks and alternative lenders in large cap and middle market leveraged finance transactions. His broad-based domestic and international finance experience includes widely syndicated and bilateral credit facilities, acquisition financings, and asset-based facilities. Mr. Kirsch advises clients throughout the deal cycle, from commitment letters to execution, and from refinancings to restructurings. He also has significant experience with secured and unsecured registered offerings and private placements of debt, equity, and convertible securities, representing both underwriters and issuers. Mr. Kirsch practices across a variety of industries, including software and technology, energy, gaming, healthcare, and life sciences, with extensive experience negotiating credit and security documentation.
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