Structuring Leveraged Loans After Tax Reform: Concerns for Multinational Entities
Section 956 Deemed Dividend Rules, Limits on Interest Deductions, Tax Distributions, Corporate vs. Pass-Through Borrowers
Note: CPE credit is not offered on this program
Recording of a 90-minute premium CLE webinar with Q&A
This CLE webinar will examine the impact of tax reform on leveraged financing transactions. The panel discussion will include how the new law might affect credit support between affiliates in multinational enterprises, structuring and placement of debt, interest deductibility, and provisions regarding prepayment and permitted tax distributions.
- Tax reform: an overview of new provisions, new tax rates
- New limitations on the deductibility of interest
- Impact on multinational groups
- Impact of participation exemption and proposed 956 regulation on credit support where corporate U.S. shareholders
- More foreign entities deemed CFCs: effect on credit support to noncorporate U.S. shareholders
- Tax distribution and prepayment provisions
The panel will review these and other key issues:
- What are some of the implications of tax reform and other recently proposed regulations for multinational enterprises seeking leveraged financing?
- To what extent do the proposed 956 regulations allow foreign affiliates more flexibility in providing credit support to US borrowers without triggering adverse tax consequences? Will lenders begin to require such credit support?
- How might the reduced corporate and special passthrough tax rates affect tax distribution provisions for borrowers that are taxed as corporations and borrowers that are taxed as partnerships?
- Why might lenders now require borrowers to make prepayments with foreign proceeds?
- How will new rules defining CFCs impact the ability of multinational borrowers that use specific sources of credit support?
Shearman & Sterling
Mr. Crouch focuses on transactions with extensive experience in tax matters. His tax practice involves virtually every... | Read More
Mr. Crouch focuses on transactions with extensive experience in tax matters. His tax practice involves virtually every aspect of tax planning for domestic and international transactions, including mergers and acquisitions, capital markets and joint ventures. Mr. Crouch has significant experience in merger and acquisition transactions, and in particular transactions involving private equity sellers and buyers.Close
Ms. Kim’s practice focuses on advising public and private companies in both taxable and tax-free mergers and... | Read More
Ms. Kim’s practice focuses on advising public and private companies in both taxable and tax-free mergers and acquisitions, divestitures, cross-border transactions and formation of joint ventures. She also represents publicly traded partnerships and private equity funds in multiple acquisitions, dispositions and multi-tranche and junior capital financings.Close