Asset-Based Lending: Navigating Borrowing Base, Article 9 Collateral Issues, Key Provisions

Course Details
- smart_display Format
Live Online with Live Q&A
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Banking and Finance
- event Date
Thursday, April 24, 2025
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE course will discuss asset-based lending (ABL) transactions, including issues associated with the borrowing base, obtaining and perfecting a security interest in the assets under the UCC, and essential terms in the ABL documentation. The speakers will discuss key terms of split collateral intercreditor agreements. The speakers will also discuss the impact of the current state of the financial markets on ABL deals.
Faculty

Ms. Hopkins’ practice focuses on commercial finance and creditors’ rights. She advises clients on structuring, negotiating, and documenting cash flow and asset-based transactions across all lifecycles of a loan. While she has a deep knowledge of healthcare finance, given her prior business experience, Ms. Hopkins also has industry expertise in other business sectors, such as casinos, restaurants, media, manufacturing, and entertainment. In addition, Ms. Hopkins has extensive experience structuring and documenting unitranche and split collateral deals. Prior to rejoining the firm, Ms. Hopkins served as Senior Vice President in the Healthcare Finance group at Wells Fargo Commercial Capital. In this role, she led the negotiation, documentation, and execution of all transactions (asset-based, cash flow, and real estate) for the group across a variety of healthcare sectors. Prior to her tenure at Wells Fargo, Ms. Hopkins was a partner in Paul Hastings’ Finance Practice, advising commercial finance companies, hedge funds, and banks on leveraged loans, asset-based financings, debtor-in-possession financings, syndications, and leasing transactions in a variety of sectors.

Mr. Ross represents banks and alternative lenders in commercial finance transactions, including acquisition financings, syndicated and direct lending, cross-border transactions, special situations, refinancings, recapitalizations, asset-based lending, cash flow loans, first lien/second lien facilities, and mezzanine debt facilities. He has experience in various business sectors including healthcare, software, retail, media, franchising, manufacturing, and transportation. In addition, Mr. Ross has extensive experience in representing creditors, lenders, and investors in connection with both in-court and out-of-court restructurings, including debtor-in-possession and exit financings.

As a member of the Financing and Restructuring Group, Mr. Kirsch’s practice focuses on the representation of leading commercial and investment banks and alternative lenders in large cap and middle market leveraged finance transactions. His broad-based domestic and international finance experience includes widely syndicated and bilateral credit facilities, acquisition financings, and asset-based facilities. Mr. Kirsch advises clients throughout the deal cycle, from commitment letters to execution, and from refinancings to restructurings. He also has significant experience with secured and unsecured registered offerings and private placements of debt, equity, and convertible securities, representing both underwriters and issuers. Mr. Kirsch practices across a variety of industries, including software and technology, energy, gaming, healthcare, and life sciences, with extensive experience negotiating credit and security documentation.
Description
In asset-based financing transactions, the lender lends up to a percentage of the value of the borrower's assets--the borrowing base. Assets used in ABL financing typically include accounts receivables, inventory, and equipment. The speakers will also focus on unique issues with cash in the borrowing base and whether lenders are including intellectual property in the borrowing base.
ABL lending frequently involves extensions of credit to borrowers representing a higher degree of credit risk than other types of commercial lending. As a result, ABL loans include features such as cash management and a perfected security interest in all collateral is typically required.
Listen as our authoritative panel of finance attorneys discusses structuring and documenting asset-based financing transactions, including those with senior and junior lenders. The panel will review critical issues associated with different assets in the borrowing base, obtaining and perfecting a security interest in the assets, and essential terms in ABL loan documentation.
Outline
- Types of ABL facilities
- Borrowing base
- Account receivables
- Inventory
- Equipment
- Cash
- Obtaining and perfecting a security interest in assets under UCC Article 9
- Loan documentation
- Reserves and dilution
- Reporting
- Conditions precedent to drawing on the revolver
- Cash management
- Financial covenants in ABL deals
- Split collateral intercreditor agreements
- The impact of the current financial market on borrowing base deals
Benefits
The panel will review these and other relevant issues:
- Critical issues with different assets in the borrowing base
- Obtaining and perfecting a security interest in the assets under UCC Article 9
- Cash management provisions and deposit account control agreement in ABL loan documentation
- Split collateral intercreditor agreements
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