Lending Transactions

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Overview

RK&O’s Lending lawyers are skilled in matters facing investment banks, hedge funds, private equity firms and other non-bank institutions, which are increasingly providing debt financing that was once the domain of commercial banks. Our lawyers are trained in matters facing both senior and junior capital investors as well as critical insolvency issues impacting the structuring of these investments. With this multidisciplinary approach, we craft creative, cost-effective financing solutions. more +

RK&O regularly advises on cash flow-based lending, asset-based lending, leveraged buyout financing, acquisition financing, recaps, debtor-in-possession (DIP) financing, exit financings and other secured−including multi-lien and unitranche facilities−and unsecured financings. Our lawyers advise clients on the structure, documentation and negotiation of all aspects of the financing transaction, from the initial commitment or engagement to the closing of the transaction and perfection of security interests.

Beyond addressing legal issues, we frequently help our clients analyze the commercial and credit risks involved in senior secured, first lien, second lien, mezzanine, PIK and DIP loan transactions. We represent participating or potential lenders in the review, analysis and revision of draft credit facilities by identifying the material covenant exceptions and other core issues that may exist in the loan documentation. We also represent investors in second lien and other subordinated loans and have strong experience in negotiating and seeking to improve the creditor rights available to a junior creditor. Our attorneys work closely with our Bankruptcy & Special Situations Investments practice, providing the lending support in connection with out-of-court restructurings, DIP loan transactions and Chapter 11 exit financings.

In addition to its established European and U.S. presence, RK&O routinely advises clients in connection with cross-border and emerging market transactions in Eastern Europe, Africa and the Middle East. Our lending lawyers work with local counsel to help clients apply proven investment techniques in a variety of jurisdictions. Drawing on this experience, we help clients understand and address the heightened political, legal and commercial risks often associated with emerging markets.

Our lawyers routinely advise lenders on the structure, documentation and negotiation of all aspects of the financing transaction.

Experience

  • Global investment bank in connection with multiple credit facilities secured by solar renewable energy credits.
  • A international commercial bank in connection with two senior secured delayed draw term loan facilities provided to wireless cell tower companies.
  • Macquarie Bank Limited in connection with a senior secured delayed draw term loan facility provided to CIG Comp Tower, LLC in an amount up to $150 million, the proceeds of which were used to finance the acquisition of communications towers and related assets and rights.
  • A world-renowned resort and spa owner in connection with its debt restructuring and entry into a new mortgage and mezzanine loan facility as well as the subsequent refinancing of these facilities.
  • Centaur Gaming, an Indiana based racino, in connection with its entry into first and second lien credit facilities in an aggregate principal amount of $655 million, the proceeds of which were used to acquire substantially all the assets of a Midwest casino and horse racing track in a “363 sale.”
  • Silver Lake Partners in senior secured debt financing for acquisition of 65% interest in Skype Technologies from eBay, Inc. in a transaction valued at approximately $2.75 billion.
  • Silver Lake Partners and Warburg Pincus in senior secured debt financing for acquisition of Interactive Data Corporation in a transaction valued at $3.4 billion.
  • AXIS Capital as borrower in connection with a $750 million letter of credit facility and $500 million revolving credit facility.
  • JPMorgan Chase Bank, N.A. as agent in refinancing of $1 billion revolving credit facility for Humana, Inc.
  • JPMorgan Chase Bank, N.A. and Goldman Sachs Lending Partners as agents in $1.4 billion senior secured multicurrency credit facilities in connection with a cross-border refinancing for ConvaTec Healthcare.
  • Rite Aid in connection with its senior secured lending facility arranged by Citigroup.
  • A print media company in connection with entry into a senior secured lending facility.
  • An alternative asset manager in connection with a $500 million margin loan.
  • A telecom company in connection with a $700 million secured credit facility.
  •  An agent bank in connection with a multibillion-dollar loan for the development of liquefied natural gas fields in Qatar.
  • A hedge fund as borrower in connection with a $75 million revolving credit facility secured by the capital commitments of the general partner and limited partners of the fund borrower, the proceeds of which will be used to provide bridge financing for ongoing investments of the fund borrower.
  • A private equity firm as lender in connection with numerous senior secured, senior unsecured and subordinated credit facilities used to finance the acquisition and operation of various franchise restaurants throughout the United States.
  • A large restaurant franchisee as borrower in connection with a $42 million credit facility, the proceeds of which were used to finance a reorganization and recapitalization of the company.

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