Direct Lending Terms and Documentation: Leverage Covenants, Incremental Financing, Guaranty Provisions
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE course will analyze the terms and characteristics of direct loans and how they vary from syndicated loans. The panel discussion will include financial covenants, collateral and credit support typically required for direct loans, and how private equity lenders can tailor loan terms to each borrower.
- Private equity funds as lenders
- Features of direct lending and effect on documentation
- Flexibility to lend to unusual or complex borrowers
- Customized amortization
- Enhanced financial maintenance covenants
- Delayed draws post-closing
- Foreign guarantors
The panel will review these and other key issues:
- What types of borrowers might prefer a direct loan to a loan which is to be syndicated?
- How do amortization terms and financial covenants vary between direct loans and syndicated loans?
- How are future funding commitments documented in a direct loan?
- To what extent does the collateral package vary between a direct loan and a syndicated loan?
Stroock & Stroock & Lavan
Mr. Cota is a debt finance partner practicing in the firm’s Financial Restructuring Group and serves as the... | Read More
Mr. Cota is a debt finance partner practicing in the firm’s Financial Restructuring Group and serves as the leader of its “Debt Finance” Business Unit. He advises and represents banks, private equity and hedge funds, business development companies, alternative capital providers, other financial institutions, and private companies on a variety of complex financing transactions across a broad variety of industries and in all levels of the capital structure, both lender-side and borrower-side (including administrative agent and arranger representations).Close
Alon M. Goldberger
Stroock & Stroock & Lavan
Mr. Goldberger focuses his practice on a variety of complex finance transactions. He represents agents, lenders, public... | Read More
Mr. Goldberger focuses his practice on a variety of complex finance transactions. He represents agents, lenders, public and private borrowers, private equity sponsors and their portfolio companies, business development companies and other providers (bank and non-bank) of senior and subordinated debt financing. Mr. Goldberger also advises clients on a broad range of financing transactions, including first and second lien revolving and term loan credit facilities, asset-based and cash-flow based lending, acquisition financing, unitranche credit facilities, refinancings, recapitalizations and both in-court and out-of-court restructurings.Close
Ropes & Gray
Mr. Patel advises lenders, private equity sponsors and their portfolio companies on leveraged finance transactions,... | Read More
Mr. Patel advises lenders, private equity sponsors and their portfolio companies on leveraged finance transactions, including syndicated credit facilities, mezzanine and subordinated financings, high yield offerings, and debt restructurings. He has also represented companies in public and private securities offerings and general corporate advisory matters.Close