Finance

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Overview

RK&O’s Finance lawyers are skilled at counseling clients across a range of different finance transactions, representing banks, investment banks, hedge funds, private equity firms and other financial institutions.  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.  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.  With a multidisciplinary approach working with lawyers in the firm’s Bankruptcy & Restructuring, Structured Transactions, Tax and Venture Capital groups, we craft creative, cost-effective financing solutions.  more +

Lending Finance

RK&O regularly advises on all types of secured and unsecured commercial lending transactions, across a range of different industries:

  • cash flow-based lending
  • asset-based lending
  • leveraged buyout financing
  • acquisition financing
  • mezzanine financing
  • recapitalization transactions
  • venture debt
  • debtor-in-possession (DIP) financing
  • bankruptcy exit financing
  • multi-lien and unitranche facilities

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 Finance attorneys work closely with our Bankruptcy & Restructuring practice, providing the lending support in connection with out-of-court restructurings, DIP loan transactions and Chapter 11 exit financings.

Specialty Finance

Lawyers in RK&O’s Finance group routinely represent our clients in connection with a host of different specialty finance transactions. The firm has recent experience with:

  • fund subscription credit facilities
  • litigation finance transactions
  • warehouse loan facilities
  • loan facilities collateralized by esoteric assets

The firm is able to assemble multi-disciplinary teams to provide creative solutions for loans secured by traditional and more novel assets.

Finance Advisory

The firm’s Finance attorneys frequently help our clients analyze the commercial and credit risks involved in existing and proposed senior secured, first lien, second lien, mezzanine, PIK and DIP loan transactions, as well as investments in the high-yield bond market, and advise on covenants, collateral, intercreditor provisions and implications of other terms. We represent participating or potential investors in the review, analysis and revision of draft credit facilities and indentures by identifying the material covenant exceptions and other core issues that may exist in the financing documentation. The firm’s lawyers also are skilled in reviewing security provisions in credit facilities for swap counterparty clients.

International Finance

In addition to its established European and U.S. presence, RK&O routinely advises clients in connection with cross-border and emerging market finance transactions in:

  • Eastern Europe
  • Latin America
  • Africa
  • Middle East
  • Asia

Our Finance lawyers have relationships with local counsel in many countries 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.

Experience

  • Hedge funds in obtaining financing from investment banks collateralized by illiquid asset pools including loans, bonds and claims.
  • Global investment bank in providing financing to investment funds in connection with the sale of funded and unfunded loans to such investment funds. 
  • Global investment bank in connection with structured loans to a hedge fund secured by distressed loans, bonds and related secured swaps.
  • Global investment bank in connection with multiple credit facilities secured by Solar Renewable Energy Credits (SREC).
  • A private equity fund and small business investment fund in connection with numerous senior secured, senior unsecured and subordinated credit facilities used to finance the acquisition and operation of multi-unit 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.
  • Hedge fund in connection with multiple senior secured, junior secured and mezzanine financings to various Latin American borrowers.  
  • An international commercial bank in connection with two senior secured delayed draw term loan facilities provided to wireless cell tower companies.
  • Private fund in connection with financing of distressed commercial real estate properties.
  • 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.
  • A hedge fund as borrower in connection with a $184 million revolving credit facility secured by the capital commitments of its investors.
  • 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.”

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