Impact of Tax Reform on Commercial Loan Documents: Adjustments to Financial and Other Covenants
Note: CPE credit is not offered on this program
A live 90-minute premium CLE webinar with interactive Q&A
This CLE webinar will examine the impact of tax reform on financial and other covenants in commercial loan documents. The Mayer Brown 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 to financial covenants should a borrower request 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?
Christopher M. Chubb
Mr. Chubb is a Banking & Finance partner in Mayer Brown’s Chicago office. Chris focuses his practice on the... | Read More
Mr. Chubb is a Banking & Finance partner in Mayer Brown’s Chicago office. Chris focuses his practice on the representation of corporate and lending clients in connection with a broad range of finance transactions, including leveraged buyouts, working capital financings, cash flow and asset-based financings, add-on acquisitions, cross-border and multi-currency financings and debtor-in-possession financings. In addition, he has represented clients in a variety of specialty lending fields (including ESOP, gaming, health care and franchise lending, among others).Close
Frederick C. Fisher
Mr. Fisher is a partner in Mayer Brown's Chicago office and is co-leader of the global Lending group. He focuses... | Read More
Mr. Fisher is a partner in Mayer Brown's Chicago office and is co-leader of the global Lending group. He focuses his diverse finance practice on the representation of corporate and lending clients—including banks, private credit funds, private equity funds, and public and private corporations—in connection with complex domestic and international financing transactions at all levels of the capital structure. Mr. Fisher's representations include leveraged buyouts, working capital financings, dividend recaps, cash flow and asset-based financings, add-on acquisitions, cross-border and multi-currency financings, fund level leverage facilities, ESOPs and numerous in- and out-of-court workouts and restructurings.Close
Adam C. Wolk
Mr. Wolk is a partner in the New York office of Mayer Brown's Banking & Finance practice who focuses on... | Read More
Mr. Wolk is a partner in the New York office of Mayer Brown's Banking & Finance practice who focuses on leveraged finance. He advises financial institutions and other investors as well as sponsors/borrowers in a variety of domestic and cross-border financing transactions, including syndicated and bilateral, secured and unsecured transactions in a wide variety of industries including gaming and casinos, energy (including oil and gas), agriculture and commodities, apparel and other consumer products, utilities, financial services, healthcare, restaurants and hospitality, insurance, media and technology, among others. Mr. Wolk has extensive experience documenting and negotiating first- and second-lien financings; institutional term loans and pro rata facilities; acquisition financings; cash flow facilities; asset-based loan facilities; oil and gas reserve-based facilities; project financings; subscription facilities and other fund financings; bridge loans; and workouts, restructurings, debtor-in-possession facilities and exit facilities.Close
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