Reproduced with permission from The Secured Lender
Jonathan Cooper, a principal in the firm's commercial finance group, was published in The Secured Lender in the Participations section. This section of The Secured Lender features a conversation between several industry players about a hot topic. In this issue, Mr. Cooper discusses the latest developments in commercial finance law with David Crumbaugh and David Morse. Below is an excerpt from the article.
Brian Cove, Editor-In-Chief, The Secured Lender: From your unique perspectives as commercial finance attorneys, what changes have you seen in commercial finance since the onset of the credit crisis and economic downturn back in 2008? In the years leading up to the downturn, the ABL market was characterized by excess liquidity, stiff competition among lenders, unorthodox deal structures and looser covenants. How has that changed in the last two years?
Jonathan Cooper, Partner, Goldberg Kohn: Since the credit crisis I have seen much tighter structures, more robust financial covenants and reporting requirements, more restrictive amortization schedules, and I have seen a lot more attention paid to collateral coverage. Things like pick toggles, equity cure rights and covenant-lite deals are much less common.