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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Banking and Finance

Date & Time
  • event Date

    Thursday, April 10, 2025

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

This CLE course will examine certain trends and developments in the private credit markets. The panel will discuss various types of private credit financing, key advantages and risks associated with such financing, and important terms and downside protections that are frequently built into credit documents for such financing.

Faculty

Jason S. Friedman
Partner
Mayer Brown LLP

Mr. Friedman’s practice primarily involves representing banks, borrowers, private equity sponsors, hedge funds, insurance companies, alternative asset managers, and other institutional investors in a broad range of domestic and cross-border debt finance and financial restructuring transactions, bankruptcy cases, special situations investments, and distressed acquisitions. He has extensive experience with acquisition and other leveraged financings, direct lending transactions, asset-based lending, investment grade financings, unitranche financings, dividend recapitalizations, bridge loans, complex liability management transactions, and debtor-in-possession and exit financings.

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Benjamin Snyder
Partner
Mayer Brown LLP

Mr. Snyder has more than a decade’s experience advising clients across various industries (including hospitality, technology, real estate and energy) in the negotiation and execution of debt and equity financings and related transactions, with a focus on private credit and special situations transactions. He has extensive experience documenting and negotiating acquisition financings; cash flow facilities; first- and second-lien financings; asset based loan facilities; investment grade and leveraged transactions; bridge loans; and restructurings.

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Sheel Patel
Partner, Leader of the New York Office Private Credit
Mayer Brown LLP

Mr. Patel leverages more than 15 years of experience in assisting clients with complex commercial financing transactions and restructurings across diverse industries. He routinely represents leading private credit lenders, financial institutions, private equity sponsors and corporate borrowers on cutting-edge leveraged and investment-grade financing transactions, asset-based financing transactions, mezzanine lending, high yield issuances, preferred equity investments, event-driven and opportunistic financing transactions, as well as special situations, workouts, restructurings, and insolvency matters. Mr. Patel is a frequent speaker in the area of finance and is often quoted in leading publications such as Bloomberg and the Financial Times. 

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Description

Historically a means for providing junior debt or financing for smaller or more challenging deals, the private credit market has expanded dramatically since the turn of the century and now covers an array of strategies that span the capital structure and types of borrowers. Private credit financing offers investors attractive yields and downside protection, and, unlike many traditional bank lending arrangements, it provides flexible, relationship-based financing at a time of growing liquidity constraints. Private credit is a "big tent" that covers financing ranging from senior secured debt to junior unsecured credit for funding new building construction, to loans against specialized assets or contractual revenue streams, to distressed situations.

Private credit instruments have traditionally incorporated "tighter" terms and enhanced downside protections in comparison to the credit documentation for, say, broadly syndicated loans. While this remains the case in smaller and medium-sized private credit financings, notable signs of convergence as between large private credit financings and broadly syndicated loans have been growing over recent years (although a number of critical differences remain). Examples of typical key terms and downside protections include financial maintenance covenants, approach to EBITDA addbacks and covenant carveouts, the inclusion of J Crew blockers and other liability management restrictive measures, and events of default.

Listen as our authoritative panel of experts discusses different types of private credit financing, pros and cons associated with such financing, and certain key terms and lender protections in private credit documentation.

Outline

  1. Overview of the current private credit market
  2. Types of private credit financing
    1. Direct lending, including first lien, second lien, and unitranche lending arrangements
    2. Sponsor-backed lending
    3. Mezzanine debt
    4. Distressed debt and opportunistic credit
    5. Specialty finance
  3. Key advantages and risks in private credit financing
  4. Certain key terms and protections in private credit financing
    1. Financial maintenance covenants
    2. EBITDA addbacks
    3. J Crew blockers and other liability management restrictive measures
    4. Covenant carveouts
    5. Events of default
    6. Other downside protections
  5. Key takeaways

Benefits

The panel will discuss the topics set forth below as well as other important topics regarding private credit:

  • What factors gave rise to today's private credit market?
  • What types of private credit financing are currently being used?
  • What are some examples of important terms and downside protections that are typically included in documentation for private credit deals?
  • What are some key advantages and risks that should be considered in connection with private credit financing?