In Practice
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European CMBS and its new cousin, the CRE CLO
Iain Balkwill considers the differences between CRE CLOs and European CMBS and the rationale for their application.
19 March 2024Implications of proposed legislation in New York for sovereign debt restructuring
The New York legislature is currently considering three Bills that could substantially impact sovereign debt markets if enacted. The Bills would: (i) limit private creditors’ recovery in the event of sovereign default; (ii) block private parties from purchasing sovereign debt for the purpose of litigating a renegotiation of the debt; and (iii) create a binding, bankruptcy-like restructuring mechanism for sovereign debtors. This In Practice article looks at some of the potential implications of the New York Bills.
19 March 2024Intra-group loan agreements: what do finance lawyers need to know?
In the current economic landscape, which is plagued with high inflation and interest rates, the legal agreements covering intra-group loan transactions are being reviewed with a fine-tooth comb from an arm’s length perspective. This is because loan agreements are a starting point for any transfer pricing analysis and if done properly (ie are arm’s length) can assist in justifying interest deduction locally ensuring that there is no, to limited, double taxation. The question is however – what does an arm’s length loan agreement entail? In this In Practice article, we explore this question and highlight the key aspects to consider with their potential repercussions.
19 March 2024“Double materiality”: what does it mean for non-financial reporting?
Companies have been publicly reporting on their financial performance for over a hundred years. However, they are increasingly having to make public non-financial disclosures relating to sustainability and environmental, social and governance (ESG) matters as a result of rules, laws and regulations issued by stock exchanges, governments and regulators worldwide. In the context of non-financial reporting, there has been increasing awareness of the concept of “double materiality” in recent years. In this article we clarify what “double materiality” means and provide the context of its regulatory background within the EU. We also consider the significance of “double materiality” and give our views on the potential consequences for companies of non-compliance.
19 March 2024Embedded finance: market challenges and market changes
In September ((2022) 8 JIBFL 560) we outlined that embedded finance is the availability of financial products, integrated into a company’s infrastructure, provided by non-financial institutions (platform lenders) and capitalised by “traditional” financial institutions. One of the benefits of embedded finance is an enhanced customer experience. This customer-led approach will become more important in the current and forecast economic environment. COVID-19 drove a change in consumer habits and demands and saw record valuations for fintechs. However, as the world economy faces an increasingly challenging outlook, there has been a so-called “rebalancing” of these high valuations. In July 2022 credit card transactions by UK cardholders were up by nearly 10% on last year (UK Finance) and global e-commerce revenues are forecast to shrink for 2022. Does this signal trouble ahead for embedded finance?
19 March 2024The art of the intercreditor
Over the last decade, financing transactions have moved away from typical senior/mezzanine loan structures to a wider variety of products including syndicated loans, first lien/second lien loans, direct lending and high yield bonds (and in some cases, a hybrid of them). This has increased lenders’ attention on the intercreditor terms, which establish the relationship and priority between the different types of creditors in the financing structure, particularly in the circumstances when things go wrong. In this In Practice article, the authors consider the key terms of intercreditor agreements that creditors should be focused on during negotiations and, how these and other provisions differ between a structure comprised of senior and junior loans (Senior/Junior Structure) and a structure comprised of notes, each accompanied with a super senior revolving facility (Notes/SSRCF Structure). 11 1
18 March 2024Coaching and the corporate witness
In this In Practice article, James Barrett considers several key practices which can help a corporate witness to prepare for giving evidence including to courts and public inquiries.
18 March 2024Preparing for a new UK securitisation framework
In this In Practice article the authors consider how buy- and sell-side parties to securitisation transactions can get ready to comply with the UK’s new securitisation framework.
18 March 2024Private portfolio financings on the rise
In this article the authors consider the benefits of private portfolio financings in light of challenging conditions for CLO issuance.
18 March 2024Ripping up the rulebook: financing the energy transition
The authors set out some of the challenges faced by both lenders and equity investors when deploying capital towards energy transition projects at scale. Such challenges include the volume of capital expenditure required, novel technology risk, untested markets and the participation of diverse stakeholders with a range of different sectoral experience. The authors then draw on their firm’s experience to demonstrate pioneering approaches taken by lenders and investors to mitigate risk and establish bankable project structures.
18 March 2024
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