Unitranche Financing for Middle Markets: Loan Facility Structure and Market Trends for Borrowers and Lenders
Structuring Agreements Among Lenders, Maximizing Recovery for First-Out and Last-Out Lenders in Event of Default
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will discuss the structure of unitranche loan facilities, the differences between unitranche loan facilities and first/second lien facilities and senior/mezz facilities, current trends in the unitranche loan facility “market,” and potential enforcement issues with (AALs) after a default or bankruptcy.
- Structure of unitranche facilities and comparison to first/second lien facilities
- Terms of the AAL
- Blended interest rate
- Payment waterfall
- Voting rights modified by the AAL
- Ability of last-out lender to direct enforcement actions and the agent
- Enforcement of AALs in event of default or bankruptcy
- Ability of lenders to object as unsecured creditors
- Entitlement of lenders to adequate protection/post-petition interest
- Pitfalls for last-out lenders in classification disputes
The panel will review these and other key questions:
- What are current trends in unitranche lending and how are these facilities structured?
- How do unitranche facilities differ from first/second lien facilities and senior/mezz facilities?
- What rights do last-out lenders have to take direct enforcement action in the event of loan default, both pre- and post-bankruptcy?
- Can a first-out or last-out lender object to actions of the lending agent as an unsecured creditor?
Jennifer B. Hildebrandt
Ms. Hildebrandt represents banks, commercial finance companies, hedge funds, and other lenders in commercial and... | Read More
Ms. Hildebrandt represents banks, commercial finance companies, hedge funds, and other lenders in commercial and corporate finance matters, leveraged finance transactions, asset-based finance transactions, multi-tranche and multi-lien transactions, and restructurings. In particular, she has extensive experience representing lenders in two lien deals, unitranche transactions, and bank / bond deals.Close
Jennifer St. John Yount
Partner, Corporate Department
Ms. Yount’s practice consists of representing banks, finance companies, and other lenders in working capital... | Read More
Ms. Yount’s practice consists of representing banks, finance companies, and other lenders in working capital financings, acquisition financings, bank/bond transactions, restructurings, and debtor in-possession and exit financings. Ms. Yount has negotiated numerous intercreditor and subordination agreements in 1st Lien/2nd Lien, split collateral, and mezzanine financings and agreements among lenders in unitranche and FILO financings.Close