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Sophisticated legal counsel for term loans, revolving credit facilities, and working capital financing across industries.
Corporate credit facilities encompass traditional lending arrangements between banks or institutional lenders and operating companies. These structures—including term loans, revolving credit lines, and working capital facilities—provide essential liquidity for operations, capital expenditures, and strategic initiatives.
Documentation follows commercial lending standards with financial covenants, representations and warranties, and events of default tailored to borrower profiles. Structures balance lender risk management with borrower operational flexibility, typically secured by general business assets or specific collateral.
Credit agreements for term loans with amortization schedules, prepayment provisions, mandatory prepayments from asset sales or excess cash flow.
Committed and uncommitted revolving lines with borrowing base provisions, swingline sub-facilities, and letter of credit accommodations.
Short-term facilities supporting inventory purchases, receivables financing, and seasonal working capital needs with flexible draw terms.
Single-lender facilities or small group arrangements with streamlined documentation and relationship-driven terms for middle market borrowers.
Structuring financial covenants including leverage ratios, coverage ratios, minimum liquidity, and capital expenditure baskets tailored to business models.
Refinancing existing facilities at improved terms, negotiating covenant relief, or amending credit agreements for operational changes or M&A activities.
Fully funded term loans with quarterly or monthly amortization, first-priority security interests in business assets, and maintenance covenants tested quarterly. Typical for acquisitions or refinancings.
Multi-year committed revolving credit facilities with unused commitment fees, typically including letters of credit sub-limits and swingline options for same-day borrowing needs.
Integrated packages combining term loans and revolvers under single credit agreements with shared collateral, cross-default provisions, and coordinated covenant baskets.
Incremental facility provisions allowing borrowers to upsize commitments subject to lender approval and financial tests, providing growth capital flexibility within existing documentation.
Our network has deep experience with commercial lenders, relationship banks, and corporate borrowers across industries. We understand market standards for financial covenants, the practical implications of negative covenants on business operations, and the negotiation dynamics between borrowers and senior lenders.
Whether you're a lender extending corporate credit, a CFO negotiating financing terms, or a company refinancing existing facilities, we bring focused commercial lending expertise to protect your interests and ensure efficient execution.
Bilateral facilities involve a single lender relationship with streamlined documentation and faster execution (typically 3-4 weeks to close). Syndicated facilities involve multiple lenders coordinated by arrangers, with more complex documentation, syndication mechanics, and longer timelines (6-10 weeks). Bilateral works for straightforward credit situations and established banking relationships. Syndication is necessary for larger commitments that exceed single-lender limits, provides borrower diversification across lender relationships, and creates a liquid market for trading among institutional investors.
Term Loan A (TLA) is typically held by banks, has quarterly principal amortization (usually 5-7 years), includes maintenance covenants tested quarterly, and prices at SOFR plus 200-350 basis points. Term Loan B (TLB) targets institutional investors, has minimal or no amortization until maturity (7-8 years), uses incurrence covenants rather than maintenance tests, and prices at SOFR plus 350-500 basis points. TLB provides longer runway and operational flexibility; TLA offers lower pricing and maintains banking relationships. Many capital structures combine both for optimal cost and flexibility.
Market flex gives arrangers the right to modify pricing, structure, or terms if market conditions change between signing and syndication. Typical flex includes 50-75 basis points of pricing adjustment, changes to amortization schedules, covenant modifications, and original issue discount (OID) adjustments. Borrowers negotiate flex caps to limit potential changes and often push for reverse flex (better terms if oversubscribed). Flex is critical in volatile markets where arrangers need protection against adverse conditions but must be carefully limited to avoid unexpected costs or structural changes.
Revolving facilities allow borrowing, repayment, and re-borrowing up to a committed amount (like a credit card), typically used for working capital and short-term needs. Term loans are drawn at closing and amortize according to a fixed schedule, used for acquisitions, capital expenditures, or refinancing. Revolvers charge commitment fees on undrawn amounts (usually 25-40 basis points) plus interest when drawn. Term loans only charge interest on outstanding principal. Most corporate capital structures include both—a revolver for liquidity management and term debt for long-term financing.
The administrative agent (typically the lead arranger) handles ongoing facility administration: processing borrowing requests and repayments, calculating interest, distributing payments to lenders, monitoring compliance, maintaining the lender register, and coordinating amendments. The agent acts as intermediary between borrower and syndicate, doesn't make credit decisions (except for swing line sub-facilities), and relies on lender instructions for major actions. Agent protections (indemnities, limitations on liability, resignation rights) are heavily negotiated. Borrowers pay annual agency fees (typically 20,000-75,000 depending on facility size) for these services.