Description
Understand the basics of ABL credit agreements and the best practices for compliance, with an emphasis on current market trends.
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. However, some of the most burdensome credit agreements are assetbased lending (ABL) credit agreements. The heart and soul of ABL lending is 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 will provide lawyers and treasury professionals with specific areas on which to focus 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.
Date: 2023-09-18 Start Time: 1:00 PM ET End Time: 2:05 PM ET
Learning Objectives
* You will be able to discuss typical assetbased lending credit agreement provisions.
* You will be able to explain where to focus review of term sheets and credit agreements.
* You will be able to identify best practices pre and postclosing to avoid defaults.
* You will be able to discribe an action plan if default occures or is forecasted.