Main Street Lending Program: Documentation, Federal Reserve Participation, Concerns With Existing Financing
Recording of a 90-minute premium CLE webinar with Q&A
This CLE webinar will discuss latest guidance on how each of the Main Street Lending Programs should be documented, the mechanics of the Fed's SPV participation in each loan, and concerns that must to be addressed with regard to existing financing. The panel will also discuss the interplay of the loan documents with the participation documents after the loan is closed.
- Main Street Lending Program
- Term sheets for all the three credit facilities
- Eligible borrowers, eligible lenders
- Federal Reserve participation through newly created SPV
- Documenting the loan
- Integrating fed model provisions into the lender's loan documents
- Borrower certifications and financials
- Lender certifications
- The participation process: after or contemporaneously with closing
- Participation agreement, assignment-in-blank, and co-lender agreement
- Servicing agreement: administration of the loan, borrower reporting obligations
- Rights of Federal Reserve vs. lender in an event of default: elevating the SPV's interest to that of lender
The panel will review these and other key issues:
- In what respects do the recently released term sheets revise the initial parameters of the Main Street Lending facilities?
- Can the model loan provisions prescribed by the Fed be revised by lenders in documenting the loan?
- What are the key terms of the SPV participation agreement, assignment-in-blank, and co-lender agreement?
- How might those agreements affect the administration of the loan after closing and enforcement in the event of default?
Shearman & Sterling
Mr. Chernick has over 25 years of experience in the U.S. leveraged finance market, representing leading investment and... | Read More
Mr. Chernick has over 25 years of experience in the U.S. leveraged finance market, representing leading investment and commercial banks, alternative capital providers and other financial institutions in bank financing and debt capital markets transactions. He has extensive experience in public and private leveraged and investment grade acquisition finance (including bridge financings), refinancings and recapitalizations, second-lien and asset-based lending. Mr. Chernick also advises on securities, capital markets, bank finance, and corporate transactions representing corporations and financial institutions in bank financings, public and private offerings and high-yield debt offerings.Close
Shearman & Sterling
Mr. Kulawik is a partner in the Finance practice in New York and Washington, D.C. and focuses on leveraged finance,... | Read More
Mr. Kulawik is a partner in the Finance practice in New York and Washington, D.C. and focuses on leveraged finance, including acquisition financings, asset based lending, refinancings and restructurings. He is also experienced in structured finance and investment grade finance.Close