Structuring Intercreditor Agreements in Split Collateral Lien Structures Between ABL and Term Lenders
Navigating Collateral Pool, Priority of Rights, Access to Collateral, Standstill Period, and Waterfall Provisions
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will provide commercial lending counsel with a review of essential provisions in a split-collateral intercreditor agreement, including the priority of rights, access to collateral, payment blockage and standstill provisions. The panel will address the negotiation of provisions from the perspective of the asset-based lender (ABL) and term lender.
Outline
- Defining collateral pools
- Priority of rights issues
- Access to collateral
- Payment blockage
- Standstill and the senior lienholder’s right to exercise remedies
- Waterfall provisions
Benefits
The panel will review these and other high priority issues:
- Defining and delineating the collateral pools of the lenders
- Understanding priority rights to proceeds from collateral or other receipts not allocated to either lender
- Identifying and negotiating each lender’s rights and remedies following a borrower default
Faculty
Jennifer B. Hildebrandt
Partner, Corporate Department
Paul Hastings
Ms. Hildebrandt is a partner in the Global Finance Group of Paul Hastings and head of the Los Angeles Corporate... | Read More
Ms. Hildebrandt is a partner in the Global Finance Group of Paul Hastings and head of the Los Angeles Corporate Department. She represents banks and other lenders in commercial finance matters (including asset-based loans and cash flow loans), restructurings, workouts, and special situation lending. Ms. Hildebrandt has extensive experience in multi-tranche and multi-lien transactions. In particular, she has extensive experience representing lenders in two lien deals, split collateral deals and first-out / last-out unitranche transactions. In addition, she has experience in various business sectors including healthcare, software, retail, insurance, media, franchise, restaurants, casinos, manufacturing, and vehicle and airline transportation, and in cross-border transactions.
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Christopher G. Ross
Partner, Corporate Department
Paul Hastings
Mr. Ross represents banks and alternative lenders in commercial finance transactions, including acquisition financings,... | Read More
Mr. Ross represents banks and alternative lenders in commercial finance transactions, including acquisition financings, syndicated and direct lending, cross-border transactions, special situations, refinancings, recapitalizations, asset-based lending, cash flow loans, first lien/second lien facilities, and mezzanine debt facilities. He has experience in various business sectors including healthcare, software, retail, media, franchising, manufacturing, and transportation. In addition, Mr. Ross has extensive experience in representing creditors, lenders, and investors in connection with both in-court and out-of-court restructurings, including debtor-in-possession and exit financings.
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