Asset-Based Lending: Navigating Borrowing Base, Article 9 Collateral Issues, and Key Loan Documentation

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


Conducted on Tuesday, January 16, 2018

Recorded event now available

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Program Materials

This CLE webinar will discuss the mechanisms of asset-based financing transactions, including issues associated with the borrowing base, obtaining and perfecting a security interest in the assets as collateral under the UCC, and key terms in asset-based lending (ABL) loan documentation.

Description

In asset-based financing transactions, the lender lends up to a percentage of the value of the borrower’s assets—the borrowing base. Assets used in ABL financing typically include cash, accounts receivables, inventory and equipment.

ABL lending frequently involves extensions of credit to borrowers representing a higher degree of credit risk than other types of commercial lending. As a result, ABL loans include features such as cash management, and a perfected security interest in all collateral is typically required.

Listen as our authoritative panel of finance attorneys discusses structuring and documentation of asset-based financing transactions including those with senior and subordinate lenders. The panel will review key issues associated with different assets in the borrowing base, obtaining and perfecting a security interest in the assets, and key terms in ABL loan documentation.

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Outline

  1. Types of ABL facilities
  2. Borrowing base
    1. Cash
    2. Accounts receivables
    3. Inventory
    4. Equipment
    5. Real estate
  3. Obtaining and perfecting a security interest in assets under UCC Article 9
  4. Loan documentation
    1. Representations and covenants
    2. Reserves and dilution
    3. Conditions precedent
    4. Cash management (deposit control account agreements and lock boxes)
    5. Subordination/intercreditor agreements

Benefits

The panel will review these and other key issues:

  • Key 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
  • Subordination and intercreditor agreements in ABL loan documents

Faculty

Blaut, Ari
Ari B. Blaut

Partner
Sullivan & Cromwell

Mr. Blaut maintains a broad corporate practice advising clients on a wide range of financing transactions, including...  |  Read More

McKnight, S Neal
S. Neal McKnight

Partner
Sullivan & Cromwell

Mr. McKnight  is co-head of the Firm’s Finance and Restructuring Group and co-head of the Firm’s...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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