Syndicated Loan Agreements: Multi-Lender Issues

Crafting Provisions Covering Defaulting Lenders, Amend and Extend, and Pro Rata/Sharing to Address Lender and Borrower Objectives and Risks

Recording of a 90-minute CLE webinar/teleconference with Q&A


Conducted on Thursday, July 12, 2012
Recorded event now available


This CLE webinar will provide practitioners with an analysis of issues that arise in multi-lender syndicated loan agreements. The panel will outline how to draft clauses to protect all parties to the agreement and bolster the enforceability of provisions in the face of a lender default or insolvency.

Description

As the syndicated loan market improves, loan provisions have evolved to address problems that arose during the financial crisis. One trend is for borrowers to negotiate amend-and-extend provisions to give flexibility to extend existing loans while lenders are still receptive.

Syndicated lender defaults during the financial crisis heightened scrutiny on defaulting lender provisions. The LSTA’s 2011 Model Credit Agreement revised those provisions by clarifying definitions, including a defaulting lender, consequences of being a defaulting lender, and obligations of remaining lenders.

While the pro-rata/sharing principle is conceptually simple, the crafting of such provisions and their enforcement is more complex and indeed gives rise to a host of legal issues emanating from pro-rata sharing.

Listen as our authoritative panel of finance attorneys discusses the drafting of several critical provisions of syndicated loan agreements.

Outline

  1. Overview of current conditions in syndicated loan market
  2. Defaulting lender provisions
  3. Amend-and-extend facilities
  4. Pro rata/sharing provisions

Benefits

The panel will review these and other key questions:

  • How can parties best craft loan provisions that facilitate approval for amend-and-extend provisions in the face of loan terms requiring pro-rata repayment treatment?
  • How do the defaulting lender provisions of the LSTA’s Model Credit Agreement clarify the definition of defaulting lender and the consequences for a defaulting lender?
  • What are the various objectives of sharing clauses and what issues must counsel anticipate in drafting pro rata/sharing provisions?

Faculty

Marissa C. Wesely, Partner
Simpson Thacher & Bartlett, New York

She specializes in domestic and international bank finance transactions, with an emphasis on leveraged acquisition finance and recapitalization transactions, principally advising equity sponsors and corporate borrowers. She is recognized as a leading lawyer in banking and finance by Chambers & Partners, The Best Lawyers in America and the U.K. publication, “Which Lawyer?”

Ann S. Makich, Partner
Cahill Gordon & Reindel, New York

Her practice is principally focused on leveraged financings for acquisitions, recapitalizations and going-private transactions. Her clients include leading investment banking firms and commercial banks. She has represented underwriters, placement agents and initial purchasers in public and private high-yield and equity offerings and secured bank loans in a wide range of industries.

Angela L. Fontana, Partner
Weil Gotshal & Manges, Dallas

Her practice consists primarily of financing transactions and debt restructurings for both borrowers and financial institutions. Her experience includes investment grade lending, commercial paper facilities, letter of credit facilities, cash flow- and asset-based lending, sports team financing, equity and subordinated debt bridge financing, mezzanine financing, and workouts and restructurings.

Ordering

Online CLE - Audio Recording

Includes streaming audio of full program plus handouts (available 24 hours after live program).

CLE: Pre-approved for participatory or non-traditional/alternate format credit in: CA, HI*, NY*, WV*. Pre-approved for self-study credit in: AK, AZ, MO, MT, TX*, VT, WA.
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Online CLE Audio $297.00
Available 24 hours after the live event

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Recorded Event

Includes full event recording plus handouts (available after live seminar).

CLE: Pre-approved for self-study credit in: AK, AZ, CA, CT, HI, MO, MT, NY, TX*, VT, WA, WV. Upon request, self-study credit is also available in: CO, FL, GA, ID*, KY, ME, ND, NE, NH, NM, NV, OR, UT, WI, WY. If you are applying for self-study credit in one of these states, contact Strafford CLE at 1-800-926-7926 ext. 35 or CLE@straffordpub.com. (*Indicates that Strafford needs to process the CLE — see below to purchase this option.)

Webinar Download (Slide Presentation with Audio) $297.00
Available three business days after the live event

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MP3 Download (Audio with Slide PDFs) $297.00
Available 24 hours after the live event

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CD (Audio with Slide PDFs) $297.00 plus $9.45 S&H
Available ten business days after the live event

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Program Materials

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Program Materials

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Finance Law Advisory Board

Anne Lee Benedict

Partner

Gibson Dunn & Crutcher

Mark N. Berman

Partner

Nixon Peabody

Willa Cohen Bruckner

Partner

Alston & Bird

Laura D. Richman

Counsel

Mayer Brown

Robert M. Stern

Partner

O’Melveny & Myers

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