Loan Implications of the New Outbound Investment Rules: Covered Transactions, Lender and Borrower Considerations
Updating Due Diligence Processes and Loan Documentation to Account for the New Regulations
A live 90-minute premium CLE video webinar with interactive Q&A
This CLE webinar will explore the implications of the new Outbound Investment Rules on loan documentation and lender due diligence processes. The panel will summarize the new regulatory framework and highlight compliance and risk management procedures for lenders and key considerations for borrowers.
Outline
- Overview of the new Outbound Investment Rules
- Covered transactions
- Covered foreign person
- Required level of due diligence: "reasonable and diligent inquiry"
- Prohibited and notifiable transactions
- Exceptions and safe harbors
- Enforcement and penalties
- Application of new rules to loans and debt financings
- Actions for lenders
- Assessing whether the new rules apply
- Updating due diligence processes
- Negotiating new provisions in loan agreements: LSTA suggested language
- Continued monitoring to handle ongoing diligence requirements over the life of the loan
- Considerations for borrowers: more restrictive loan terms, longer transaction timelines, strategic transaction structures, and increased disclosure requirements
- Potential expansion of the rules going forward in accordance with the America First Investment Policy
Benefits
The panel will address these and other key considerations:
- What types of transactions are "covered transactions" and who qualifies as a "covered foreign person"?
- What are the implications of the new rules on loan transactions and debt financings?
- How should lenders adapt their due diligence processes and loan documentation to account for the new regulatory framework?
- What are practical considerations for borrowers in China, Hong Kong, and Macau?
Faculty
Christine Laciak
Special Counsel
Freshfields
Ms. Laciak advises clients with respect to global foreign investment review regulations, including in particular... | Read More
Ms. Laciak advises clients with respect to global foreign investment review regulations, including in particular with respect to U.S. national security reviews conducted by the Committee on Foreign Investment in the United States (CFIUS). She has over a decade of experience guiding companies through the CFIUS process, from the due diligence and contract negotiation phase, to the strategic risk assessment and notification and review phases. Ms. Laciak is a recognized expert on global foreign investment review regimes and serves as a leader of the firm’s global foreign investment review team. She combines her global perspective on foreign investment review regimes with her substantial experience advising clients in connection with CFIUS reviews to ensure a coordinated global approach. With her additional merger control expertise, Ms. Laciak regularly advises on the intersection of foreign investment and merger control regimes in cross-border transactions.
CloseEarly Discount (through 06/13/25)