Private Debt has emerged as a formidable asset class. As traditional banking institutions dramatically scaled back their lending in the wake of the financial crisis of 2008, non-bank entities filled the void to supply the market with vital capital. In the years since, the private debt markets have seen impressive growth. Small and medium-sized enterprises (SMEs) have found direct lenders more accommodating, nimble and responsive to their specific business and sector challenges than traditional banks. As investors search for yield, the private debt markets are frequently chosen as an attractive option due to the strong returns offered by this asset class. This has resulted in continued growth in what remains a relatively new, sophisticated and fast evolving market.

Polsinelli has a well-coordinated team of seasoned attorneys and professionals with several years of experience advising corporate borrowers and private credit funds, business development companies (BDCs), investment funds, hedge funds and other non-bank lenders on a wide variety of complex private debt transactions. Our team advises large corporations, SMEs, new ventures and distressed entities on financings of all sizes and types of complexity. Our experience spans a range of industries and sectors, and possesses a deep knowledge and understanding of each level of the capital structure, including as it pertains to senior secured, first/second lien, subordinated, mezzanine and unitranche facilities. We are also well-versed in navigating the nuances of various intercreditor relationships.

Our Private Debt team acts as legal, business and strategic advisors to the institutions and funds crafting the most cutting edge and innovative transactions in the private debt markets. We are deeply involved at every phase of the life cycle of the financing, including originating new private debt, day to day administration of the debt, restructuring existing debt and dealing with enforcement issues and financings in bankruptcy.

Our team’s experience encompasses all forms of the following:

  • Direct Lending
  • Mezzanine Debt 
  • Distressed Debt and Restructuring Finance
  • Special Situations
  • Venture Debt
  • Fund-Level/Subscription Line Loans
  • SPV Financing
  • Portfolio Company/Borrower Representation

Our Private Debt clients include:

  • Credit Funds
  • BDCs
  • Investment Funds
  • Insurance Companies
  • Hedge Funds 
  • Family Offices
  • SMEs
  • Other Non-Bank Lenders
  • Advised a global credit investment platform on and relating to a USD $293 million and CAD $26 million unitranche term loan credit facilities to a private equity sponsor in connection with an acquisition financing involving U.S. and Canadian entities.
  • Advised a global credit investment platform on and relating to a USD $240 million senior secured term loan and a USD $15 million revolving credit facility to an enterprise information management and IT system management solutions company.
  • Advised a global credit investment platform in connection with a USD $250 million senior secured second lien term loan facility to a distressed energy company with assets in Africa, Asia, Australia, Central America, Europe and South America. 
  • Advised a private equity and venture capital firm focused on biopharmaceuticals, medical devices, diagnostics and health care services, on a USD $100 million bridge to permanent senior secured term loan facility to a pharmaceutical research and development company based in the Netherlands.
  • Advised a foreign-based credit investment platform on a USD $8.5 million second lien term loan to a U.S. based FinTech SME.