Structuring Delayed Draw Term Loans: Conditions Precedent, Ticking Fees, Fronting Arrangements, Evolving Uses
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will discuss the terms and structuring of delayed draw term loans. The panel will review the evolving uses of delayed draw term loans (DDTLs) in leveraged buyouts (LBOs) and other private equity transactions and critical points of negotiation, including conditions precedent to making draws, ticking fees, loan term, and fronting arrangements in syndicated deals.
- Evolving uses of DDTLs: LBOs and other financings
- Conditions precedent to making a draw
- Reps and warranties
- Leverage covenants
- Term of commitment
- Ticking fees
- Financing of upfront fees
- Fronting provisions in syndicated a DDTL
The panel will review these and other vital questions:
- How does a DDTL vary from revolving credit, and how are DDTLs currently being used in LBO and other private equity transactions?
- What are the standard conditions to making a draw under a DDTL? What additional conditions might be imposed as the sponsor seeks more flexibility?
- What are ticking fees, and how are they impacted by loan terms?
- How are funding commitments addressed in a syndicated deal? What if one of the lenders fails to fund?
Meyer C. Dworkin
Davis Polk & Wardwell
Mr. Dworkin advises lenders and borrowers on a variety of finance transactions, including acquisition financings,... | Read More
Mr. Dworkin advises lenders and borrowers on a variety of finance transactions, including acquisition financings, asset-based financings, debtor-in-possession financings and bankruptcy exit financings and structured financings. In addition, Mr. Dworkin regularly represents hedge funds and corporations in negotiating prime brokerage agreements, ISDA and BMA-standard agreements and other trading and financing documentation and other complex structured financial products.Close
Vanessa L. Jackson
Davis Polk & Wardwell
Ms. Jackson’s practice focuses primarily on the representation of financial institutions and corporate borrowers... | Read More
Ms. Jackson’s practice focuses primarily on the representation of financial institutions and corporate borrowers in a broad range of corporate finance transactions, including leveraged and investment-grade acquisition financings, asset-based credit facilities, debt restructurings, spinoffs, working capital financings, debtor-in-possession financings, exit financings, and other secured and unsecured financings.Close