What is a Lender to Do? Liability Management Exercises: Drop-Down Financings and Uptiering Transactions
May 20, 2021
Otterbourg attorneys, Valerie Mason and David Morse participated in the Strafford live video webinar titled "What's a Lender to Do? Liability Management Exercises: Drop-Down Financings and Uptiering Transactions," presented on Thursday, May 20, 2021.
Liability management exercises have become more commonplace during the past 12 months, and typically take the form of either "drop-down" financings or "uptiering" transactions. Both types of transactions involve complex structuring techniques that provide additional avenues of leverage for borrowers but can negatively affect the expectations and rights of existing lenders.
Valerie and David were joined by Allison Manzer of the firm of Cassels Brock & Blackwell LLP, in a discussion of drop-down and uptiering structures and how lenders might respond to these financing maneuvers. The presentation reviewed liability management exercise issues highlighted in recent cases and elements of credit agreement covenants that a lender needs to consider to address these transactions.
The slides from the program may be viewed here.
