Cross-Border Special Situations Lending Update

Changes in leveraged loan documentation requirements open up new possibilities for borrowers and lenders.

October 06, 2015

Cross-border leveraged loan documentation has become increasingly permissive with respect to third party debt, in some respects similar to high yield bonds, thus offering some previously unconsidered opportunities for specialist debt funds and special situations lenders. In a continued low-yield environment, careful consideration of these market developments, and the knowledge of how to utilize exceptions to covenants and other provisions in the leveraged loan and bond documentation, can open up possibilities for these lenders to offer a wider range of structured debt products to borrowers needing liquidity. Latham & Watkins' recent Client Alert, New Opportunities in Cross-Border Special Situations Lending, revisits some of the key issues in special situations lending and identifies those areas where recent developments in leveraged loan and bond documentation create opportunities for special situations lenders. For more information download the Alert.

Additional Resources

Client Alert: Cross-border Leveraged Lending – US Intercreditor Agreements for Financings with European Elements

Hybrid US/European restructurings can lead to unexpected commercial outcomes because of different practices in intercreditor agreements. For more information download the Alert.

Practice Area: Special Situations

Latham & Watkins' Special Situations Practice provides advice to special situations groups, hedge funds, issuers and sponsors, with an emphasis on bespoke non-traditional capital raises, including distressed transactions. Find out more about the Special Situations Practice.

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