Real Estate Mezzanine and A/B Loans: Structuring and Enforcing Intercreditor and Co-Lender Agreements
Reconciling the Demands and Objectives of Senior and Junior Lenders
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will prepare real estate finance counsel to structure intercreditor agreements between senior/mezzanine and A/B lenders. The panel will discuss the most frequently negotiated provisions, and the challenges to enforcing intercreditor agreements in distressed loan scenarios.
- Key provisions of mezzanine loan intercreditor agreements
- Key provisions of co-lender agreements, including control rights of B Note holders
- Participation agreements as a variation of co-lender agreements
- The role of the servicer under co-lender agreements and tensions with B Note holders
- Borrower concerns and considerations
- Lender strategies for dealing with a defaulted loan
- Lessons from workouts and bankruptcies on structure, enforceability and remedies
The panel will review these and other key issues:
- What provisions are typically included in an intercreditor agreement or a co-lender agreement?
- What are the lessons from recent years that influence how these agreements are drafted?
- How does the securitization of the senior loan affect the workings of these agreements and the workout of troubled loans?
- What challenges have senior and junior lenders faced when working out loans on transactions that include a mezzanine loan or B Note?
- What are the payment priorities under tiered financing structures?
Bruce E. Prigoff
Cox Castle & Nicholson
Mr. Prigoff represents real estate capital markets lenders and investors in bridge and mezzanine financing, A/B... | Read More
Mr. Prigoff represents real estate capital markets lenders and investors in bridge and mezzanine financing, A/B structured loan transactions, equity investment and discounted acquisitions of mortgage loans, mezzanine loans and B Notes. He possesses extraordinary expertise in the purchase and sale of distressed performing and non-performing loans, loan portfolios and properties.Close
Michael J. Waters
Mr. Waters’ practice involves counseling institutional investors and lenders, real estate opportunity funds, and... | Read More
Mr. Waters’ practice involves counseling institutional investors and lenders, real estate opportunity funds, and private developers on all aspects of their real estate-related business, with an emphasis on complex debt restructurings and workouts of senior and mezzanine loans and equity investments, including the acquisition and disposition of distressed loans and real estate assets. He has particular expertise in the negotiation of intercreditor and participation agreements and the complex inter-lender issues arising in distressed real estate projects.Close