Mid-Market Lending 2 – Documentation and Negotiation

Description

This course focuses on preparing loan documentation to ensure the bank is protected in an event of default. Participants will discuss security and documentation requirements for a syndicated deal. A credit agreement will be reviewed to learn which sections are contentious and need to be negotiated. Participants will have an opportunity to negotiate a client’s request for major changes to an existing Credit Agreement.

Details
Prerequisites

Participants should have a high level of familiarity with credit products prior to taking this course.

Time

16 hours

Learning Topics

Types of Security

  • Understand what types of security are required for different financing structures
  • Review different types of security, including:
    • GSA, PPSA, Mortgages, Guarantees, PMSI, Negative Pledges
    • Guarantees
    • Ringfencing
    • Structural subordination

Documentation

  • Understand what documents are required to take security in a corporate lending transaction
  • Review of key sections of a Credit Agreement, including:
    • Definitions
    • Conditions Precedent
    • Payment of Interest and Fees
    • Reps & Warranties
    • Financial Covenants
    • Security
    • Events of Default
  • Identify items which are contentious and subject to negotiation

Negotiation

  • Identify business issues that need be resolved prior to involving legal counsel
  • Learn how to negotiate changes to an existing Credit Agreement
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