Term Loans, Credit Risk Transfers, and Credit Guaranties in Subscription Finance: Tailoring Loan Terms; Mitigating Risks
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will provide finance counsel with an understanding and overview of term loans, credit risk transfer (CRT) transactions and credit guaranties under current market conditions. The panel will explain how these subline facilities can be structured to complement conventional bank loans and provide borrowers with access to non-bank financing on less restrictive terms while also helping lenders reduce credit liabilities to create new lending opportunities.
Outline
- Review of current market conditions
- Term loans
- Credit risk transfers
- Credit guaranties
- Considerations for choosing a proper structure
- Structuring the transaction
- Overcoming challenges and risks
- Other issues and considerations
Benefits
The panel will address these and other relevant considerations:
- What are the current challenges and market conditions for subscription credit lines?
- How are term loans used to complement other forms of financing?
- Why have credit risk transfers and credit guaranties seen an increase in popularity in recent years?
- What are the challenges and practical considerations when structuring these credit line structures?
Faculty
Caroline M. Lee
Counsel
Dechert
Ms. Lee has extensive experience in complicated financings designed to provide fund-level leverage to facilitate and... | Read More
Ms. Lee has extensive experience in complicated financings designed to provide fund-level leverage to facilitate and support investment activities. She regularly advises various financial sponsors, asset managers, business development companies and other financial institutions on a wide variety of fund financing transactions, including: subscription (capital call) facilities secured by uncalled capital commitments and related rights, with borrowing base capacity for the fund, as well as its parallel funds, alternative investment vehicles and portfolio companies; unsecured demand lines with an uncalled capital coverage requirement; hybrid facilities; NAV facilities; asset-based revolvers and Loan-to-SPV financings; margin loans; fund guarantees of portfolio level investments; management lines provided to investment advisors for working capital purposes; and employee co-investment credit facilities secured by their fund interests.
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Jed Miller
Partner
Cadwalader, Wickersham & Taft
Mr. Miller focuses his practice on novel and innovative structured financing solutions, with an emphasis on... | Read More
Mr. Miller focuses his practice on novel and innovative structured financing solutions, with an emphasis on transactions that combine securitizations and derivatives. He regularly represents buy-side and sell-side institutions in connection with synthetic securitizations, credit-linked notes, credit default swaps (including tranched portfolio CDS), derivative product companies (DPCs) and other credit-risk transfer (CRT) products; cash securitizations of a wide range of asset classes, including fund interests (CFOs and rated feeders), corporate loans, receivables, municipal securities (tender option bonds), commercial and residential mortgages, intellectual property, automobile loans, and distressed and non-performing assets; repackaging and securitization transactions that utilize repurchase transactions or derivatives, such as currency swaps or total returns swaps (TRS), to transform the economic profile of, or achieve leveraged exposure to, repackaged or securitized assets; and the financing of risk retention interests in securitization transactions, among others. Mr. Miller is frequently called upon by clients to advise on securities law, UCC, bankruptcy, tax and other legal and regulatory issues. In addition, financial institutions routinely seek his counsel on contemporary issues facing the structured finance industry.
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