About the Course:
Credit is the life-blood of a corporation. Without it, many companies would not be able to pay their near-term liabilities (e.g. payroll) or fund the expansion of their enterprises. However, credit is often not cheap. When considering taking on credit, you must be aware of all of the costs (e.g. interest rates, points, fees and corresponding balances) as well as due diligence that will precede the receipt of your financings. You must be aware of the additional obligations (e.g. reporting) you will incur as well as the restrictions on your daily operations.
Among the issues that leading lawyer and author, Susan Alker, discussed during this session are:
- Insight into negotiating fees such as lender expenses, facility fees, upfront fees, and agency fees
- A 360 degree view of representations and warranties including scope, survival of representation, inclusion of parent or subsidiaries, and financial condition
- Recommendations for negotiating affirmative covenants such as financial statements, compliance certificates, maintenance of properties and insurance
- Negotiating who pays for inspections
- Negotiating financial covenants such as leverage ratios, interest coverage ratio, minimum EBITDA
- Crafting definitions of financial ratios
- Negotiating negative covenants such as guarantees, liens, investments, acquisitions, payment of dividends and asset sales
- Negotiating remedies and defaults
- Negotiating boilerplate items such as amendments, assignments and confidentiality
Course Leader: Susan C. Alker, Partner, Reed Smith
Susan is a partner in Reed Smith's Los Angeles office and is a member of the firm's Financial Industry Group.
She has extensive experience representing major banks, financial institutions, private equity funds and hedge funds in corporate lending transactions. She frequently advises clients in connection with syndicated credit facilities, leveraged acquisition financings, cross border loans, asset-based loans, investment grade credit facilities, debtor-in-possession credit facilities, and real estate financings. She also has significant expertise in subordinated debt transactions, interest rate swaps and derivatives transactions, mezzanine debt and second-lien loans.
Author of the book Corporate Credit - A CFO's Guide to Bank Debt and Loan Agreements (Auburn Drive Publishing, 2010).
Course Length: Approx. 1.5 hours
Need help purchasing this course? Please contact Neomi Barazani at 609-919-1895 ext. 100 or at firstname.lastname@example.org.