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

A live 90-minute CLE webinar with interactive Q&A


Tuesday, December 11, 2018

1:00pm-2:30pm EST, 10:00am-11:30am PST

or call 1-800-926-7926

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.

Description

Whether analyzing, negotiating or drafting an intercreditor agreement, counsel for lenders and borrowers must understand the key provisions and their potential impact. Counsel must also incorporate the lessons from past defaults, workouts and bankruptcies.

The critical question in most intercreditor agreements relates to each lender’s ability to exercise essential rights and enforce or challenge the agreement when a real estate loan defaults or a dispute between lenders arises. Loan workouts and bankruptcies complicate the enforcement and remedies available.

Lenders involved with tranched loans, including mezzanine loans and A/B structured loans, must be vigilant about protecting their rights and remedies under existing, as well as future, agreements. Borrowers need to understand how these agreements and tiered lending structures affect a borrower’s ability to negotiate a workout, extension or discounted payoff.

Listen as our panel of experienced practitioners outlines critical legal issues facing parties to tiered real estate financing transactions involving mezzanine intercreditor agreements and co-lender agreements. The panel will discuss the key terms in the agreements, the implications of real estate workouts and bankruptcies, the concerns of the borrower, and lender strategies for enforcement of remedies.

READ MORE

Outline

  1. Key provisions of mezzanine loan intercreditor agreements
  2. Key provisions of co-lender agreements, including control rights of B Note holders
  3. Participation agreements as a variation of co-lender agreements
  4. The role of the servicer under co-lender agreements and tensions with B Note holders
  5. Borrower concerns and considerations
  6. Lender strategies for dealing with a defaulted loan
  7. Lessons from workouts and bankruptcies on structure, enforceability and remedies

Benefits

The panel will review these and other priority issues:

  • What provisions are typically included in an intercreditor agreement or a co-lender agreement?
  • What lessons from recent years influence the drafting of these agreements?
  • 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?

Faculty

Clark, Brooks
Brooks S. Clark

Shareholder
Polsinelli

Mr. Clark focuses his practice on commercial lending, real estate and structured finance, leveraged leasing, building...  |  Read More

Coury, Steven
Steven Coury

Partner
White and Williams

Mr. Coury concentrates on highly structured real estate finance and capital markets transactions, general real estate...  |  Read More

Maibohm, Geoffrey
Geoffrey R. Maibohm

Counsel
Dechert

Mr. Maibohm focuses his practice on mortgage-backed and other asset-backed securitizations. He represents investment...  |  Read More

Live Webinar

Buy Live Webinar

Live Webinar

$297

Buy Live Webinar & Recording
A savings of $200

Live Webinar & Download

$394

Live Webinar & DVD

$394 + $19.45 S&H

Other Formats
— Anytime, Anywhere

Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

CLE On-Demand Video

48 hours after event

$297

Download

48 hours after event

$297

DVD

10 business days after event

$297 + $19.45 S&H