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  • videocam On-Demand
  • signal_cellular_alt Intermediate
  • card_travel Banking and Finance
  • schedule 90 minutes

Securitization Structures and Techniques in Capital Financing: Benefits, Objectives, Asset Pools

$347.00

This course is $0 with these passes:

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Description

Securitization is a subset of structured finance that allows creditors to monetize certain assets by transferring them to a bankruptcy remote special purpose vehicle, or SPV, which in turn either borrows from traditional lenders or issues securities backed by those assets. Securitization transactions may be structured to retain both the assets and the indebtedness or to achieve balance sheet relief. Financing costs including discounts, interest, and fees also affect structuring decisions as well as industry and operational-specific considerations.

Securitization allows a company to monetize a pool of its assets by isolating the assets from the bankruptcy estate of the company originating them. The company assigns the selected assets to a bankruptcy remote "special purpose entity," which then obtains financing that is secured by the selected assets.

The main parties to a securitization transaction include the originator/sponsor, the servicer, the trustee/collateral agent, the issuer or borrower, the underwriter or administrative agent, and the investors or lender. The main legal documents are the assignment agreement, indenture or credit agreement, and if the debt is in the form of securities, the offering document. The indenture or credit agreement, as applicable, outlines the terms of the indebtedness incurred by the SPV and the rights and duties of the parties involved in the transaction.

Listen as our authoritative panel discusses securitization structures and the common issues that arise in these transactions.

Presented By

R. Jay Gavigan
Partner
Venable LLP

Mr. Gavigan is an internationally recognized attorney who represents both borrowers and lenders in financing engagements. His experience includes representing builders, asset managers, REITs, funds, manufacturers, and commercial and residential mortgage bankers. He also represents commercial banks and direct lenders. Mr. Gavigan has advised on acquisition and leveraged finance, asset finance, syndicated credits, project finance, real estate finance, private placements, lease financing, and debt capital markets transactions. He also has significant experience with distressed credits and workouts. His practice includes cross-border financings and other transactions involving Europe, Asia, and Latin America.

Leonela Vaccaro Padrón
Counsel
Venable LLP

Ms. Padrón represents borrowers and lenders in a broad range of financing transactions, with a particular focus on fund finance (subscription lines, net-asset-value facilities, GP, and management company lines of credit), direct lending, syndicated and bilateral working capital facilities, project financings, and warehouse financings, among others. She has served as senior legal counsel at a construction and development company, where she oversaw the legal workstreams related to PPP infrastructure projects in North America. Ms. Padrón also provided advice and input to project management and commercial teams on legal issues related to procurements and assisted in structuring certain aspects of the transactions, such as joint ventures among equity and operating partners, as well as the financing of the projects.

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


  • Live Online


    On Demand

Date + Time

  • event

    Tuesday, November 7, 2023

  • schedule

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

  1. Securitization overview
  2. Comparison of securitization with other financing techniques
  3. Summary of securitization features and common types of asset pools
  4. Objectives of securitization
    1. Isolating assets from bankruptcy
    2. Lower cost financing
    3. Access to broader funding sources at more favorable rates
  5. Parties to the transaction
    1. Originator/sponsor
    2. Servicer
    3. Trustee/collateral agent
    4. Issuer/borrower
    5. Underwriter/lenders
    6. Investors/lenders
  6. Legal documents
    1. Indenture/credit agreement
    2. Offering document (if debt is in form of securities vs. loan)
    3. Benefits/drawbacks of securitization over other structured finance products (e.g., factoring)
  7. Key takeaways and practical considerations

The panel will review these and other key issues:

  • What is securitization and how does it work?
  • How does a securitization compare to other types of financing techniques (e.g., factoring, asset-backed financing, warehouse/repo transactions)?
  • What are the asset types common to securitization?
  • What are the benefits of securitization?
  • What are the key considerations for the various parties involved in these types of transactions?