Prepayment Structures in Leveraged Finance: Balancing Borrower Flexibility With Lender Protections
Debt Retirement Provisions in Syndicated, Mezzanine and Second Lien Term Loans
Recording of a 90-minute premium CLE webinar with Q&A
This CLE course will analyze the prepayment features of syndicated, mezzanine and second lien term loans. The panel will discuss provisions currently used in each type of loan to balance the borrower’s need for flexibility in future operations with the lender’s need for call protection and preserving the value of the credit.
Outline
- Debt retirement provisions generally—concerns of borrower and lender(s)
- Prepayment triggers
- Excess cash flow provisions
- Voluntary prepayments
- Call protection and “soft call” provisions
- Comparison of syndicated, mezzanine and second lien prepayment structures
Benefits
The panel will review these and other key issues:
- How do prepayment restrictions and triggers benefit lenders and how do they hamper a borrower’s business operations?
- How might call protection provisions vary between syndicated, mezzanine and second lien loans?
- What are some of the variations on the calculation of excess cash flow and when should it be applied to reduce the loan balance?
Faculty
Dr. Alison R. Manzer
Partner
Cassels Brock & Blackwell
Dr. Manzer is a partner in the Banking & Specialty Finance Group and Business Law practice. She has developed... | Read More
Dr. Manzer is a partner in the Banking & Specialty Finance Group and Business Law practice. She has developed expertise in a wide range of practice areas combining skills to work effectively in most corporate/commercial practice areas, with a focus on financial services and structured transactions. Her recent experience includes block chain and fintech applications. Her cross-border expertise has led to several leadership roles in leading U.S. business law organizations such as the American College of Commercial Finance Lawyers and the American Bar Association. Dr. Manzer has written many books on legal topics, primarily in areas of banking and specialized finance, and routinely lectures and speaks on a wide range of topics.
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Timothy R. Ryan
Partner
Holland & Knight
Mr. Ryan is a highly experienced financial services attorney who has an extensive background in representing clients in... | Read More
Mr. Ryan is a highly experienced financial services attorney who has an extensive background in representing clients in the structuring, negotiation, documentation, and closing of a broad variety of lending and financing transactions. He represents lenders and arrangers in international and domestic syndicated, club and single-lender transactions. His practice extends to acquisition financings, recapitalizations, high-grade and junior debt financings, cash flow, and asset-based and other capital market transactions. In addition, he also regularly represents clients in workouts and restructurings of troubled credits.
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Vanessa G. Spiro
Partner
K&L Gates
Ms. Spiro is a member of the firm's banking & asset finance practice group. She has substantial experience in... | Read More
Ms. Spiro is a member of the firm's banking & asset finance practice group. She has substantial experience in leveraged finance and represents financial institutions and other creditor entities and borrowers (corporates, sponsors and other capital end-users) in connection with acquisition financings, cash flow and asset-based transactions and other finance matters. She also has significant experience in restructurings, workouts, distressed debt matters and debtor-in possession and exit financings.
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