The Knowledge Group Has Scheduled a Live Webcast on Understanding, Analyzing and Resolving Issues Arising in Sophisticated Negative Covenant Negotiations

New York, NY, June 08, 2020 --(PR.com)-- The Knowledge Group, the leading producer of regulatory focused webcasts, announced today that it has scheduled a live webcast entitled: Understanding, Analyzing and Resolving Issues Arising in Sophisticated Negative Covenant Negotiations in Mid-Cap and Small-Cap C&I Credit Documents. This event is scheduled on Thursday, July 09, 2020 from 3:00 pm to 4:30 pm (ET)

Event Synopsis:

Middle Market commercial lending remains an important business segment for lending institutions. Larger institutions continue to rely on this segment for predictable revenue and cross-sell opportunities, while smaller lending institutions seek a greater share of this market to better diversify their loan asset portfolios, often compelled by regulatory demands. Borrowers in this segment also require ready access to capital of this type to support their on-going capital needs, as well as their expansion ambitions.

Competition among Lenders in this space remains fierce. When Lenders compete for commitments, the primary initial focus is usually around pricing and structural points. Once that battle has been won and the commitment have been secured, much of the tension falls to the negotiation of credit documentation that addresses the Lenders’ need for negative covenants consistent with its credit requirements. The tension comes from the Lender’s well-intentioned pursuit of restrictions to protect its credit investment and agreed upon return, and the Borrower’s good faith desire to avoid burdensome restrictions that could impede its business judgment exercised in the “ordinary” course of running a successful business. The tension is only magnified in pursuant of new relationships, and greater still with well-established borrowers with a track record of success notwithstanding the complexity as to their internal needs, intercompany activities and interactions with other creditors, vendors and other business stakeholders.

This presentation will give a better understanding of typical/standard negative covenant variations and negotiation points in Mid-Cap and the top-end of the Small-Cap deals. The presentation will cover these points in the context of bi-lateral and syndicated loan transactions. The focus will be on (i) a Lender’s perspective as to why such restrictions are necessary, (ii) the objections frequently levied by Borrowers, and (iii) the compromises that can be struck to address these competing interest. Frank Quinn will also discuss the relative strengths and weaknesses of these compromises, the real world applications of these compromises and the documentation concerns we often encountered in drafting these solutions.

To illustrate the complexity of these real world applications, they will discuss certain of these negotiations and compromises in the context of several very well-publicized controversies involving covenant disputes. But, mainly, the speaker will be sharing the audience the firm's 30 plus years’ experience in crafting solutions that work for Borrowers and Lenders, alike.

Speakers/Faculty Panel

Francis J. Quinn, Partner
Windels Marx

For an updated list of the faculty panel, please visit:

https://www.theknowledgegroup.org/webcasts/mid-cap-and-small-cap-ci-credit-documents/

About The Knowledge Group

Founded in November 2006, The Knowledge Group has been at the forefront of providing quality continuing education programs for lawyers, accountants, financial executives, risk and compliance specialists, human resources professionals, technology officers, and business consultants in a wide range of industries.
The Knowledge Group strives to be the best-in-class provider of continuing education by bringing forth relevant content you can’t get anywhere else.