COMMERCIAL LENDING: DESCRIPTION
Our lawyers are widely recognized as demonstrating a practical, business-oriented approach to advising clients. We are acutely aware that doing business today requires a critical evaluation of potential risks, responsibilities and rewards.
Rather than burdening a deal with inappropriate demands that unfairly skew the risk/reward profile, resulting in unnecessary cost, complexity and delay, we work closely with our clients to employ pragmatic solutions that accomplish client objectives while mitigating unreasonable levels of exposure.
McKenna Long & Aldridge represents banks, finance companies and other lenders in all aspects of commercial lending, including asset-based lending and high risk specialty finance lending. We advise clients in the structuring of these loans, loan documentation, creation and perfection of security interests in personal property as well as real estate collateral, loan closings and trouble loan workouts. In addition to representing lenders in connection with the structuring and closing of commercial secured loan transactions, we advise financial institutions and other lenders regarding compliance with state and federal banking and consumer finance regulations.
Although not exhaustive, the following is a discussion of some of the practice areas that are illustrative of our Commercial Lending expertise.
- Asset-Based Lending. Our lawyers act as outside counsel to a number of national financial institutions with the structuring, documentation and negotiation of loans ranging in size from $1 million dollars to in excess of $100 million, usually secured by the assets of the borrowers. By understanding a borrower’s unique needs and industry, we are able to construct credit facilities secured by fixed assets such as receivables, inventory, equipment and real estate. Nontraditional assets such as trademarks, patents, saleable contracts, and recurring revenue streams can also be considered in designing and solving guarantee and credit issues. We will assemble the appropriate members of your team from the firm’s corporate, regulatory, real estate, intellectual property, and litigation practices to provide clients with comprehensive expertise in complex secured lending transactions.
- Mezzanine and Alternative Financing. As the capital markets have required lower loan-to-value ratios in transactions, our lawyers have been active in structuring and closing mezzanine and other high-yield structured financings to fill this gap created in the capital structure. These transactions have included mezzanine tranches or separate mezzanine facilities for single projects as well as large multi-state portfolios. We also have extensive experience in documenting and negotiating cash flow and enterprise value subordinated loans, junior secured and Tranche B loans, and senior bridge loans. Our lawyers are very familiar with the issues presented to mezzanine lenders, rating agencies and senior lenders in these financings and have the experience to achieve creative solutions to what are typically complicated negotiations.
- Conduit Lending. Our commercial real estate group has been integrally involved in the conduit lending area since its emergence. In the past five years, we have closed more than 750 conduit loans aggregating in excess of $2 billion. Properties financed include various retail, multi-family, office, hotel, industrial, mobile homes, nursing homes and mixed-use projects located in more than 40 states across the country. We understand the competitive pressures that prevail in the marketplace and recognize that speed and efficiency in the closing process are absolutely essential to the success of a conduit lending program.
- Workouts and Creditors Rights. We have a team of professionals that has developed a reputation nationally and internationally for their workout and creditors rights expertise. The innovative techniques that we employ have consistently been effective in achieving negotiated solutions to the most complex, antagonistic and litigious creditor relationships.
- Additional Experience. Our Commercial Lending group has significant experience in other areas as well, including REIT Financing, Construction Lending, Loan Servicing, Participation and “B” Note Acquisitions, Stress Structured Lending and Portfolio Transactions.