Double-Dip Credit Structures: Permissibility, Enforceability, Benefits, Challenges, Risks, Key Loan Covenants
Liability Management Tool for Bolstering Liquidity, Improving Recovery, Decreasing Risks and Preserving Priority for Creditors
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE webinar will discuss double-dip transactions, which are becoming an increasingly popular liability management tool utilized by borrowers to restructure their existing liabilities and bolster liquidity. The panel will explore when double-dip transactions are permitted or restricted under a borrower's existing loan documents and will review the benefits, risks, and challenges associated with these types of transactions.
Outline
- Background: what is a double-dip transaction?
- Key characteristics and features of double-dip financing
- Types of double-dip transactions
- Basic or true double dip
- Pari-plus
- Double dip vs. other types of liability management techniques
- Determining permissibility of a double-dip transaction under a borrower's existing loan facility
- Key considerations when negotiating and structuring the double-dip transaction
- Benefits, challenges, and risks with the double-dip claims/structure
- Recent examples of double-dip transactions
- Practitioner pointers and key takeaways
Benefits
The panel will review these and other key considerations:
- What is double-dip financing and what are the key characteristics of these transactions?
- What are the two basic types of double-dip transactions and how are they structured?
- What are key loan provisions to consider when reviewing existing loan documents or negotiating new credit facilities in contemplation of a double-dip transaction?
- How do double-dip transactions compare to uptier and drop-down transactions and can they be used alongside these other forms of liability management exercises?
Faculty
George H. Singer
Partner
Holland & Hart
Mr. Singer practices in the areas of corporate and commercial law, including finance, financial restructuring, capital... | Read More
Mr. Singer practices in the areas of corporate and commercial law, including finance, financial restructuring, capital recovery, and bankruptcy. He negotiates senior and subordinated financing arrangements and has experience with structuring credit facilities, perfecting finance documentation, and closing secured and lease finance transactions. Mr. Singer regularly represents lenders, lessors, funds, committees, business debtors, guarantors, and creditors in financial workouts, restructurings, distressed-sale transactions, intercreditor disputes, lender liability claims, successor liability issues, and preferential and fraudulent transfer litigation. He has been practicing for over 20 years and regularly advises publicly and privately held companies on corporate governance, debt and equity financings, licensing issues, and risk management. Mr. Singer serves as corporate counsel on behalf of buyers and sellers and venture capitalists in complex merger, acquisition, divestiture, and joint-venture transactions.
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Jonathan W. Young
Partner, Chair Bankruptcy and Restructuring Practice Group
Locke Lord
Mr. Young’s practice encompasses out-of-court restructuring, distressed lending and M&A, governance of... | Read More
Mr. Young’s practice encompasses out-of-court restructuring, distressed lending and M&A, governance of financially stressed and distressed entities, and complex bankruptcy and insolvency proceedings in the U.S. and internationally. He advises investors, lenders, noteholders, directors, equity sponsors, and portfolio companies across multiple industries and jurisdictions. Mr. Young also represents trustees, receivers, and other fiduciaries in reorganizing, restructuring, or liquidating financially distressed entities. When consensus and restructuring are not achievable, his practice also extends to complex litigation, focusing on governance disputes, avoidance, and insolvency-related claims, and secured lending and related intercreditor issues. With substantial experience in restructuring and, when necessary, winding down private equity-sponsored portfolio companies, Mr. Young’s practice bridges restructuring and bankruptcy, debt finance, private equity, and governance.
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