Combining Asset-Based and Term Lending Facilities: Navigating Competing Interests, Harmonizing Documentation
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE course will examine the complexities in negotiating and documenting an asset-based lending (ABL) facility alongside a leverage loan facility with the same borrower, including the differing collateral and priorities between an asset-based facility and a term loan facility, and how those differences affect the terms of the documentation and ultimately the enforcement should either facility go into default.
Outline
- ABL and term loan facilities: differences in collateral, underwriting focus of each type of lender
- Advantages to borrowing under both types of facilities
- Documenting a split collateral financing
- Key concerns/provisions for the term lender
- Key concerns/provisions for the ABL lender
- Pros and cons of conforming ABL to term documents: preserving ABL rights and remedies
- Intercreditor agreement: addressing the diverging interests of the ABL and term lender if the borrower defaults
Benefits
The panel will review these and other essential issues:
- How does the underwriting and collateral for an ABL facility differ from a term loan?
- What are the added risks associated with split collateral financing?
- How should those risks be addressed in the loan documents and the intercreditor agreement?
- What are the pros and cons of conforming the ABL documents to the term loan documents?
Faculty

Wade M. Kennedy
Partner
Holland & Knight
Mr. Kennedy is an attorney in Holland & Knight's Chicago office and a member of the firm's Financial... | Read More
Mr. Kennedy is an attorney in Holland & Knight's Chicago office and a member of the firm's Financial Services Team and co-lead of the Asset-Based Lending Team. He has more than 30 years of experience and focuses his practice on representing lead financial institutions in complex syndicated credits to asset-based and leveraged borrowers. Mr. Kennedye has significant experience documenting asset-based credit facilities in the context of sponsor-driven acquisitions, unitranche facilities and working capital, high yield/term debt and first lien/second lien transactions.
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David W. Morse
Partner
Otterbourg
Mr. Morse represents banks, hedge funds, commercial finance companies and other institutional lenders in the... | Read More
Mr. Morse represents banks, hedge funds, commercial finance companies and other institutional lenders in the structuring and documentation of financing transactions, both domestic and cross-border facilities and including loan workouts and restructurings. He has been co-chair of the International Lending Conference sponsored by the Commercial Finance Association since its inception in 2006 and he represents the Commercial Finance Association to the United Nations Commission on International Trade Law (UNCITRAL) in its current project on secured transactions law.
CloseEarly Discount (through 02/24/23)
Cannot Attend March 23?
Early Discount (through 02/24/23)
You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.