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Potential Pitfalls in Borrowing Base Transactions - Webinar

  • ID: 3693162
  • Webinar
  • January 2018
  • Region: Global
  • 90 Minutes
  • Lorman Business Center, Inc.
In many transactions, the borrowing base assets raise issues that are unique to the particular industry of the borrower.

When negotiating a credit agreement, several factors, including the borrowers risk profile and credit ratings, impact the breadth of the affirmative, negative and financial covenants imposed on the borrower. But some of the most burdensome credit agreements are asset based lending (ABL) credit agreements. The heart and soul of ABL lending is the collateral, and thus, ABL credit agreements often provide for intense lender monitoring and supervision because the borrowing base is tied to eligible assets. Under such a strict regime and without good advice from counsel, it is not uncommon for borrowers to trip an unintended default.

This topic will highlight the basics of ABL credit agreements, including common provisions and pitfalls, and provide lawyers and treasury professionals management with specific areas on which to focus their review during negotiations. This information will also help ensure that the persons responsible for administering ABL credit facilities understand best practices for compliance with their complex provisions.

Learning Objectives
  • You will be able to identify the key differences between ABL credit agreements and other secured credit facilities.
  • You will be able to recognize the issues on which to focus should your company be considering entering into ABL financing.
  • You will be able to discuss compliance challenges unique to ABL credit facilities.
  • You will be able to describe a game plan for ensuring adherence to the often complex borrowing base calculations and reporting requirements contained in ABL facilities.
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Discuss Typical Asset-Based Lending (ABL) Credit Agreement Provisions and Term Sheet Considerations
  • Where to Focus Review of Term Sheets and Credit Agreements
  • Typical Definitions, Representations, Covenants and Events of Default
  • Other Negotiating Points
Formulate Best Practices Pre- and Post-Closing to Avoid Defaults
  • Credit Agreement Negotiation
  • Credit Agreement Administration
Defaults
  • Avoiding Defaults
  • Approach If Default Occurs or Is Forecasted
  • A Word on "Technical" Defaults
Frequent Compliance Inquiries
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Kimberly MacLeod Hunton & Williams LLP, Hillary Patterson Hunton & Williams LLP
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This webinar is designed for attorneys, presidents, vice presidents, branch managers, loan officers, loan department personnel, credit and collection managers, controllers, accountants and real estate professionals..
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