Agreements Among Lenders in Unitranche Lending: Structural Issues and Current Trends
Recording of a 90-minute CLE webinar with Q&A
This CLE course will discuss the structure of unitranche loan facilities, the differences between unitranche loan facilities and first/second lien facilities and senior/mezz facilities, certain trends in the unitranche loan facility “market”, and certain potential issues associated with AALs.
Structure of unitranche facilities and comparison to first/second lien facilities
- Terms of the AAL
- Blended interest rate
- Payment waterfall
- Voting rights modified by the AAL
- Ability of last-out lender to direct enforcement actions and the agent
Enforcement of AALs in event of default or bankruptcy
- Ability of lenders to object as unsecured creditors
- Entitlement of lenders to adequate protection/post-petition interest
- Pitfalls for last-out lenders in classification disputes
The panel will review these and other key questions:
- What rights do last-out lenders have to take direct enforcement action in the event of loan default, both pre- and post-bankruptcy?
- Can a first-out or last-out lender object to actions of the lending agent as an unsecured creditor?
- Are first- or last-out lenders entitled to adequate protection/post-petition interest?
- Are last-out lenders disadvantaged in classification disputes?
Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.
Jennifer B. Hildebrandt
Ms. Hildebrandt represents banks, commercial finance companies, hedge funds, and other lenders in commercial and... | Read More
Ms. Hildebrandt represents banks, commercial finance companies, hedge funds, and other lenders in commercial and corporate finance matters, leveraged finance transactions, asset-based finance transactions, multi-tranche and multi-lien transactions, and restructurings. In particular, she has extensive experience representing lenders in two lien deals, unitranche transactions, and bank / bond deals.Close
Jennifer St. John Yount
Partner, Corporate Department
Ms. Yount’s practice consists of representing banks, finance companies, and other lenders in working capital... | Read More
Ms. Yount’s practice consists of representing banks, finance companies, and other lenders in working capital financings, acquisition financings, bank/bond transactions, restructurings, and debtor in-possession and exit financings. Ms. Yount has negotiated numerous intercreditor and subordination agreements in 1st Lien/2nd Lien, split collateral, and mezzanine financings and agreements among lenders in unitranche and FILO financings.Close