Articles by author
Super senior Revolving Credit Facility: a legacy product?
Virtually all businesses need or want a line of credit to provide working capital to support daily operations and growth. Sponsors need to balance this operational need with the importance of moving quickly and execution certainty. As a result market practice has developed Revolving Credit Facility (RCF) Establishment provisions to mitigate this challenge by agreeing up-front mechanics for bringing in a working capital provider post-closing. The legal position is now well established for this approach. However, a commercial tension remains on the super senior RCF product itself so implementation variations and the unitranche/SSRCF structure that had become the norm are being tested.
22 NOV 2025How much is a word worth?
The parties to a finance transaction are understandably focussed on the commercial deal but the words used in the relevant contracts for the transaction really do matter. The choice, order or absence of words can in some circumstances have a direct monetary impact on the contracting parties’ positions. In this article, the authors consider principles of contractual construction, with recent illustrations from the world of finance and suggestions as to steps parties can take to avoid ambiguity and uncertainty.
24 OCT 2024Pre-funding: the secret to a smooth closing or a minefield of risks?
Faced with a challenging deal-making environment, volatile geopolitical backdrop and rising cost of capital, dealmakers are increasingly concerned about risks inherent to closing mechanics of complex acquisitions. In acquisition finance there is scrutiny to ensure committed funds arrive on time and utilisation mechanics adapt to facilitate funds flow and not vice versa. In this article Nick O’Grady, Philippe Bernier-Cormier and Gabby White from Baker McKenzie’s leveraged finance team look at developments in pre-funding structures and documentation in both the syndicated and private credit markets.
31 MAY 2024Can the consent of an obligor be taken at face value?
Lenders and their legal advisors carefully check the capacity of obligors, and the due authorisation of their signatories, at the commencement of a deal. In this In Practice article, we consider the issues arising when consents are needed from obligors during the life of a facility. The recent case of CRF I Ltd v Banco Nacional De Cuba and another [2023] EWHC 774 (Comm) is a cautionary reminder of the consequences of failing to obtain required obligor approvals going forward.
1 OCT 2023
