News
Knowledge Management Attorney Laura Jakubowski has authored "Public Data in Cross-Border Lending," the feature story published in the July/August 2024 edition of the Secured Lender.
Laura writes that the ability to leverage key precedent and transaction data is essential to structuring, negotiating and documenting lending transactions. This is particularly true in the world of cross-border asset-based financing, where new transaction structures and jurisdictional arrangements continue to emerge as borrowers expand their operations to access new geographical markets. For a cross-border asset-based loan, it is essential to understand the nuances of the markets in which the company is operating, both from a practical and a legal perspective. This understanding is key both for lenders who are considering the overall lending landscape when initially considering a transaction, as well as for lawyers who are documenting a cross-border loan.
Laura reports that to assist lenders with this exercise to leverage precedent and answer basic deal structuring questions, SFNet has created two curated resources that can be helpful in locating the right data. These resources include (1) a database with a summary of key documentation points for public precedent cross-border ABL transactions, and (2) a database with high level summaries of potential priority claims in specific jurisdictions provided by counsel experienced in the relevant jurisdictions.
These resources are available on the SFNet International Finance Committee’s website at [www.sfnet.com/home/industry-data-publications/industry-insights-trends/abl-cross-border-reserve and-deal-data]. The databases provide a helpful overview of key considerations when structuring a cross-border transaction, as well as a source of public precedent documents that may be helpful in drafting and negotiating documentation for cross-border credit facilities.
SFNet’s deal database includes a comprehensive list of public credit agreements that fit the cross-border ABL structure going back to 2011 – a historical perspective that provides an interesting data snapshot of how the cross-border ABL lending market has changed over time. The database can be used to observe market trends across multiple metrics, including the frequency of certain jurisdictions and currencies, as well as how borrowing base, guarantee and collateral structures have changed in response to market pressures and changes in local law.
CLICK HERE to read the full article and to learn more about the database.
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Director of Knowledge Management and Innovation