Equity Commitment Letters: Structuring and Negotiation Strategies, Key Terms, Lender Protections, Mitigating Risks
Recording of a 90-minute premium CLE video webinar with Q&A
This CLE webinar will explore the increasing use of equity commitment letters (ECLs) in fund finance. The panel will discuss structuring considerations and explain the differences between ECLs and guaranties. The panel will also examine key terms found in ECLs, negotiation strategies for structuring these transactions, and ways to mitigate risks.
Outline
- Uses of ECLs in fund finance transactions: trends and developments
- Pros and cons of ECLs
- Differences between ECLs and guaranty agreements
- Structuring and negotiation considerations
- Key terms
- Lender protections
- Risk mitigation
- Enforcing an ECL
- Practice pointers and key takeaways
Benefits
The panel will discuss these and other important considerations:
- What are the latest trends and developments in the use of ECLs in fund finance transactions?
- What are the appropriate circumstances when an ECL should be used?
- What are factors to consider when negotiating and structuring an ECL?
- What are the benefits and risks associated with ECLs?
- How does the lender enforce an ECL to repay a credit facility?
Faculty
Javier E. Martinez
Partner
Haynes Boone
Mr. Martinez’ primary focus is in representing lenders and some borrowers in secured transactions at all stages... | Read More
Mr. Martinez’ primary focus is in representing lenders and some borrowers in secured transactions at all stages of the deal, from negotiating term sheets to booking loans to various forms of workouts including preparing for structured bankruptcies. He routinely represents clients in syndicated commodities finance transactions, other traditional asset based loans, and other loans with unique collateral issues like media loans and subscription lines for funds. Mr. Martinez also has extensive experience in complex commodities swap and hedging intercreditor issues faced by senior lenders and cross-border transactions with an emphasis on Latin America, having represented clients in both multi-jurisdictional loan and merger transactions.
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Sherri Snelson
Partner
White & Case
Ms. Snelson has extensive experience acting as lead counsel for lenders, private equity funds, and their portfolio... | Read More
Ms. Snelson has extensive experience acting as lead counsel for lenders, private equity funds, and their portfolio companies in connection with leveraged finance and fund/portfolio finance transactions. She is dual qualified in New York and England & Wales and practiced previously in the UK. Ms. Snelson has acted as lead counsel on hundreds of finance transactions that span a wide array of industries and jurisdictions throughout the Americas, Europe and Asia. Hers experience also includes advising investors and borrowers in connection with both in- and out-of-court debt restructurings, DIP financings, exit financings, 363 sales, English administrations and schemes of arrangements, and insolvency related matters in several European jurisdictions.
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Lindsay Karas Stencel
Partner
Thompson Hine
Ms. Stencel is a partner in the firm’s New Ventures practice. She advises entrepreneurs, investors and fund... | Read More
Ms. Stencel is a partner in the firm’s New Ventures practice. She advises entrepreneurs, investors and fund managers on venture capital and startup matters, venture capital fund formation, mergers and acquisitions, corporate finance, federal and state securities filings and compliance, including public and private securities offerings, and corporate organization and governance matters. Prior to joining the firm, Ms. Stencel served as a partner and chief legal counsel at a Midwest-focused venture capital firm that invests in pre-seed, seed early stage and growth stage technology companies serving several industries. There, her efforts primarily focused on deal structuring, portfolio management, limited partner relations, fundraising and exit transactions.
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