News & Analysis as of

Financing Collateral

Cadwalader, Wickersham & Taft LLP

B(ack to School) September 2024 - Unlocking Liquidity With a Tranche B Facility

Liquidity solutions are a topic du jour in fund finance. With bank balance sheets somewhat restricted by macroeconomic concerns and risk-weighted asset regulations, fund finance borrowers and lenders have sought creative ways...more

Cadwalader, Wickersham & Taft LLP

Going for Gold August 2024 - Credit Portfolio Finance – A Primer on Back-Leverage

The combination of increased regulatory pressure and additional investor demand for higher yield has seen numerous banks gradually displaced by private debt funds in the corporate lending sector (particularly for mid-market...more

Husch Blackwell LLP

Credit Risks Likely to Rise as 2024 Draws to a Close

Husch Blackwell LLP on

A strange confluence of geopolitical events, labor unrest, softening consumer demand, and supply-chain logistical issues could leave lumps of coal in the stockings of lenders this holiday season. The story begins in the Red...more

Mayer Brown

NAV Credit Facilities: The Spectrum of Collateral Structures

Mayer Brown on

Executive Summary - Net Asset Value (“NAV”) credit facilities are a tool that borrowers may use to access financing based on the value of their underlying investment portfolio. The users of these facilities are generally...more

Cadwalader, Wickersham & Taft LLP

A New Age of PerFFFection June 2024 - Potential Impact of UCC Article 12 on Fund Finance Transactions

At the bottom of the stack in investment fund structures, there are generally “real” assets—things like equity interests in portfolio companies, mortgage loans, commercial receivables, maybe even bricks and mortar. Fund...more

Proskauer Rose LLP

Understanding the Increasing Use of Holdco NAV Loan Structures

Proskauer Rose LLP on

While the market for NAV financings—loans to funds supported by the net asset value of their portfolios—grew in 2023 and continues to rapidly evolve, a consensus has developed around what is sometimes referred to as a “Holdco...more

Cadwalader, Wickersham & Taft LLP

Controlling Cash March 2024 - Cash Control Event: Lender and Borrower Considerations

Our readers have been blessed with wonderful Fund Finance Friday articles dealing with the maintenance of collateral accounts in 'When Deposits Don’t Travel with Loans', control over collateral accounts in 'Control or Control...more

Mayer Brown

Subscription Finance: Commingling Collateral Accounts

Mayer Brown on

For loans primarily secured by a cash flow stream, subscription facility lenders heavily depend on collateral accounts as a key element of the security package. In this Legal Update, we delve into why subscription facilities...more

Proskauer - Blockchain and the Law

Part II: NFT Lending — Legal Issues Involving Secured Transactions under the UCC, Pre- and Post-Article 9 and 12 Amendments

As discussed in Part I of this series, NFT-based lending is pioneering a new avenue of investment and activity on the blockchain that will enable new and innovative use cases. In this Part II, we will discuss the implications...more

Cadwalader, Wickersham & Taft LLP

Switching It Up October 2023 - How to Account for an Account Switch

With the recent downgrades issued to several banks by Moody’s and S&P in August, as well as the recent banking turmoil which occurred earlier this year, and the flurry of assignment activity in the market, lenders and...more

Latham & Watkins LLP

PE Views: Insights on the World of Private Equity - March 2021

Latham & Watkins LLP on

Creative Uses of Collateral Present New Financing Opportunities for PE - Raising fresh capital for portfolio companies in times of financial stress is always a delicate balancing act between attracting new lenders and...more

Kramer Levin Naftalis & Frankel LLP

A Look at Retail Restructurings: Forever 21

Kramer Levin was selected as counsel to the Official Committee of Unsecured Creditors of Forever 21 and its affiliates, which filed for Chapter 11 protection in Delaware on Sept. 29, 2019. Forever 21 is a specialty fashion...more

Orrick, Herrington & Sutcliffe LLP

Overview and Analysis of Select Provisions of the ABI Chapter 11 Reform Commission Final Report and Recommendations

In December, the American Bankruptcy Institute issued its Final Report and Recommendations of the Commission to Study the Reform of Chapter 11. The Report is almost 400 pages long and contains more than 200 recommendations....more

Parker Poe Adams & Bernstein LLP

A Cautionary Tale – The Need for Bank Oversight on Collateral Releases

Beware!! The story brought to us today courtesy of the Second Circuit Court of Appeals (In re: Motor Liquidation Co., 13-2187) is one that should strike fear into the hearts of all bankers and lawyers. It is a cautionary tale...more

Latham & Watkins LLP

Margin Call: Advanced Topics and Practice Points

Latham & Watkins LLP on

In previous installments, we covered the basics of the margin regulations. In our final two installments, we’ll cover a few practice points and explore some of the more complex margin issues (particularly under Regulation U),...more

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