For lenders seeking stable and predictable collateral bases and for many businesses looking for flexible working capital, traditional asset based financing remains the best option. Polsinelli’s Asset Based Lending attorneys and paralegals understand our clients’ business and provide legal advice that has a practical application within their unique context. Our attorneys have decades of experience helping lenders take advantage of all types of collateral to provide needed capital to borrowers for investment and growth, while ensuring that the lender is securely protected in the collateral underlying the loan.
The consistency of the Uniform Commercial Code provides a good framework for asset based transactions; however lenders need to be aware of pitfalls. Whether dealing with non-uniform provisions or non-traditional collateral, Polsinelli attorneys make sure they are on the cutting edge of recent case law and statutory changes so that the value given to the collateral can be maximized during an enforcement scenario. Clients can be confident that, after a default, they will be in the strongest position possible to realize on the assets they have financed.
Our Asset Based Lending attorneys have experience across all industries and have represented clients in transactions involving traditional accounts receivable and inventory collateral and also non-traditional collateral including rolling-stock, railroad assets, broadcast licenses, unique oil field assets, intellectual property and equity interests.
The following transactions were secured by typical ABL assets (plus real estate in many cases), and included full dominion of funds. Many included drafting and negotiation of subordination and inter-creditor agreements with mezzanine and other senior lenders. All of the transactions were with borrowers located across the U.S, many of which have locations in multiple states.
- $15 million revolving and term loan facility to an oil field services company in the water hauling and frac tank business
- $150 million revolving loan facility to a crane services company
- $7.5 million revolving and term loan facility to an oil field services company engaged in road boring for pipelines
- $15 million revolving loan facility to a shrimp distribution company
- $40 million revolving loan facility to an oil field pipe distribution company
- $20 million revolving loan facility to the manufacturer of steel fab buildings
- $25 million revolving and term loan facility to an oil field trucking company
- $50 million revolving and term loan facility to a candy manufacturer
- $15 million revolving loan facility to a plastics company
- $25 million revolving loan facility to a manufacturer of bus parts
- $60 million revolving loan facility to a company in the temporary services industry supplying engineers to the aerospace industry
- $35 million revolving loan facility to a distributor of school supplies
- $25 million revolving loan facility to a distributor of tires and wheels
- $195 million revolving, CAPEX and term facilities by a national financial institution acting as lender and primary administrative agent for a 5-bank syndicate to a company wanting to partner with an international fuel supplier to acquire and develop 76 service stations. Advised as to environmental risks, assignment of supply contracts, managed other syndicate lenders, and handled general lender representation.