Impact of Tax Reform on Commercial Finance Documents: Adjustments to Financial and Other Covenants
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will examine the impact of tax reform on financial and other covenants in commercial loan documents. The panel will discuss document revisions a borrower might request to address lower corporate tax rates and other tax law changes, and the lender’s perspective on those revisions.
- Financial covenants and calculation of EBITDA after tax reform
- Leverage ratio
- Fixed charge coverage ratio
- Deferred tax assets
- Deferred tax liabilities
- Repatriation tax on earnings held abroad
- Cap on the business interest deduction
- Pledging stock of foreign subsidiaries
- Operating losses
- Restricted payments
The panel will review these and other crucial issues:
- How might the new tax rates affect the calculation of a borrower’s EBITDA and how might that change various financial covenants?
- What kind of revisions should a borrower request to financial covenants to mitigate the effects of tax reform? How should a lender respond?
- How should finance documents be revised to address new rules regarding repatriation of foreign earnings?
Holland & Knight
Ms. Otero primarily practices in the areas of real estate, finance and banking law, with a focus on all aspects of... | Read More
Ms. Otero primarily practices in the areas of real estate, finance and banking law, with a focus on all aspects of commercial lending and real estate transactions. She counsels local, national and international financial institutions and lenders in commercial lending transactions, including construction and permanent real estate financing, healthcare real estate finance and asset-based lending. She also represents borrowers, purchasers and sellers in the acquisition, development, disposition and financing of commercial and residential real estate.Close
Matthew D. Mosby
Mr. Mosby is a Managing Director in the Financial Institutions and Products group of KPMG’s Washington National... | Read More
Mr. Mosby is a Managing Director in the Financial Institutions and Products group of KPMG’s Washington National Tax office and specializes in the financial services industry. He has experience providing tax consulting, compliance, and controversy assistance on a variety of issues facing capital market participants, including debt issuances, securitizations, derivatives, and hedging programs. His clients include banks, broker-dealers, and financing companies. Mr. Mosby is a frequent speaker on tax developments in the banking industry.Close
Sean J. Tevel
Holland & Knight
Mr. Tevel is a Miami private wealth services attorney who focuses his practice primarily on tax planning for... | Read More
Mr. Tevel is a Miami private wealth services attorney who focuses his practice primarily on tax planning for high-net-worth individuals, as well as tax planning for multinational corporate and trust structures. He advises foreign and domestic clients on U.S. federal income, gift and estate tax matters associated with their cross-border investments, including their U.S. real estate investments and business ventures.Close