Swaps in Loan Transactions: Coordinating Loan Document Terms with the ISDA Master Agreement

Documenting Covenants, Security, Required Consents, Voting and Control, Reporting, and Regulatory Issues

Recording of a 90-minute CLE webinar with Q&A


Conducted on Thursday, January 26, 2017
Recorded event now available


This CLE webinar will discuss the various uses of swaps and other derivative products to hedge risk in loan transactions, how derivatives are integrated into loan documentation and how to document the swap transaction to ensure there is consistency with the loan.

Description

Two key risks commonly hedged in loan agreements are interest rate and currency risks. The swap transaction will be governed by ISDA standard derivatives documentation including the ISDA Master Agreement, the Schedule thereto and a Confirmation, which together establish the relationship between borrower and swap provider and the economic terms of the hedging transaction.

Listen as our authoritative panel of finance practitioners guides you through the use of swaps to hedge risk in loan transactions and best practices for coordinating the swap and loan documents.

Outline

  1. Use of derivatives to hedge risk in loan transactions
    1. ISDA Document Architecture
    2. Regulatory Overview
  2. Integration of derivatives into loan documentation and coordination with derivative documentation
    1. Covenants
    2. Security—Cross-Collateralization
    3. Security—liquidation priority and collateral release
    4. Cross-Default and Remedies
    5. Voting and control
    6. Prepayment
    7. Assignment
    8. Termination and Enforcement
    9. Ancillary Loan Documents

Benefits

The panel will review these and other key issues:

  • Current market trends for use of derivatives to hedge risk in loan transactions
  • Best practices for integrating derivatives into loan documentation
  • Best practices for coordinating loan documentation with derivative documentation

Faculty

Alexander P. Fraser, Partner
Michael Best & Friedrich, Milwaukee

Mr. Fraser serves as primary outside counsel to national, regional, and community banks on interest rate swaps, foreign exchange, commodities, and other derivatives product lines, including documentation for customer transactions and Dodd-Frank Act compliance. In addition, he represents end-users on interest rate swaps, foreign exchange, commodities, and other derivatives transactions and compliance. He also practices in the areas of commercial lending, corporate finance, and mergers and acquisitions. As a lending attorney, he has represented financial institutions and borrowers in a broad range of transactions, including: secured and unsecured credit transactions of all sizes and types, loan syndications and participations, leveraged buyout financings, reorganizations and workouts and correspondent banking transactions.

Harris I. Antoniades, CFA, FRM, Managing Director
Stout Risius Ross, Los Angeles

Mr. Antoniades is a Managing Director in the Valuation & Financial Opinions Group. He has extensive corporate finance experience, with emphasis in complex securities and derivatives valuations, advance financial analytics, and risk management issues. His valuation experience encompasses a broad range of asset classes, including all types of derivatives, structure products, fixed income securities, and share based awards for financial and tax reporting purposes. He has also provided valuation advisory services to public and private companies, boards of directors, and other fiduciaries in connection with strategic planning, merger & acquisition investment decisions, bankruptcy and reorganization, shareholder disputes, and other corporate, tax and litigation related matters.

Felix Shipkevich, Principal
Shipkevich, New York

Mr. Shipkevich's practice concentrates on futures, commodities, and derivatives regulatory, transactional, and enforcement matters. He has a strong legal background in corporate governance, compliance, regulatory, and collateral issues associated with these areas. He performs transactional work for Futures Commissions Merchants (FCMs), Retail Foreign Exchange Dealers (RFEDs), Introducing Brokers (IBs), Commodity Pool Operators (CPOs), Commodity Trading Advisors (CTAs), Swap Dealers (SDs), Swap Execution Facilities (SEFs), and domestic and offshore hedge funds. He guides clients on procedures related to registration with the U.S. Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA), as well as domestic and international regulators in local jurisdictions.



Webinar

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Program Materials

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Program Materials

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Customer Reviews

I thought the speakers were very well versed.

Richard A. Graham

White & Case

I thought the subject matter was handled very well!  I appreciated the panel’s interaction and their responses to the inquiries posed.

Patricia Stamler

Hertz Schram

The subject matter was timely and important, and the webinar format is well suited for this topic.

Dennis Brennan

Saul Ewing

I appreciated the clear nature of the presentation slides, as well as the Q&A section at the end.

Edmund Morrell

Alston & Bird

I thought the webinar was great.

Regina Trainor

North Shore LIJ Health System

Banking & Finance Law Advisory Board

Irving C. Apar

Partner

Thompson Hine

Mark N. Berman

Partner

Nixon Peabody

Willa Cohen Bruckner

Partner

Alston & Bird

Lawrence Kaplan

Of Counsel

Paul Hastings

Kevin Petrasic

Partner

Paul Hastings

Laura D. Richman

Counsel

Mayer Brown

Robert M. Stern

Partner

Orrick Herrington & Sutcliffe

Andrew Stutzman

Partner

Stradley Ronon Stevens & Young

Our Guarantee

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