Asset-Based Lending

Experience

Our Asset-Based Lending (ABL) professionals help structure, negotiate, document, and close a large number of asset-based loans every year for some of the most active lenders in the market. We have experience representing senior and mezzanine lenders, handling intercreditor agreements among them, differentiating and securing various types of collateral, and drafting and understanding financial covenants. The collateral in these transactions cover a range of unique property interests, such as:

• intellectual property,
• licenses,
• mixed personal property and real estate,
• in-transit inventory, and
• offshore assets.

We are also active in professional and trade groups where we are in the forefront of educational and professional opportunities to enhance awareness of industry, economic and legal developments.

Representative Matters

• Represented a Canadian lender on a $325 million multi-currency revolving credit facility with a $100 million potential increase at the anniversary date, for a maximum available credit amount up to $425 million (the borrower had assets across four countries: Canada, the U.S., the Netherlands and Germany).
• Represented a notable lender in a $45 million five-year senior secured revolving credit facility with a letter of credit sublimit, extended by a major financial institution to an importer of chemical substances and its European subsidiaries, to refinance existing debt and finance working capital needs, including the acquisition and shipment of inventory (the facility has a Eurodollar pricing option and a full set of covenants, including financial covenants).
• Represented a major bank, in connection with a $15 million credit facility to refinance the existing debt of a major graphic communications company, fund a special dividend, finance future acquisitions, and provide working capital.
• Represented a notable lender in a $14.9 million four-year senior secured revolving credit facility (with letter of credit sublimit), term loan and capex line extended by a major financial institution to a producer of nuts, dried fruit and confections to refinance existing debt and finance working capital needs and capital expenditures (the facility had a Eurodollar pricing option and a full set of covenants, including financial covenants).
• Represented a notable lender in a $12 million three-year senior secured revolving credit facility with a letter of credit sublimit, extended by a major financial institution to an importer of chemical substances to refinance existing debt and finance working capital needs, including the acquisition and shipment of inventory (the facility had a Eurodollar pricing option and a full set of covenants, including financial covenants).
• Represented a large bank, in connection with a $10.5 million revolving credit and term loan facility to finance the acquisition of a trucking company by a private equity group and provide working capital.
• Represented a notable lender in a $10 million three-year senior secured revolving credit facility with a letter of credit sublimit, extended by a major financial institution to a publicly traded information technology company to refinance existing debt and finance working capital needs (the facility had a Eurodollar pricing option and a full set of covenants, including financial covenants, and required the negotiation of separate intercreditor arrangements with several existing creditors).
• Represented the lender in a $10 million credit facility to refinance all of the senior debt and a portion of the subordinated debt of a large packaging company and fund working capital.
• Represented the lender in a $10 million revolving credit facility to recapitalize a large IT services company and provide working capital.
• Represented a notable lender in a $9 million five-year senior secured revolving credit facility with a letter of credit sublimit, extended by a major financial institution to a jewelry retailer to refinance existing debt and finance working capital needs and the opening of new store (the facility had a Eurodollar pricing option and a full set of covenants, including financial covenants).
• Represented a large bank, in connection with a $9 million revolving credit facility to refinance the debt of a retailer with stores across the Northeast and provide working capital.
• Represented the borrower in the negotiation of a $3 million revolving credit facility to finance the operations of a start-up asset-backed lending business.